Berkshire Hathaway Inc. BBRK.B

Morningstar Rating

Stock Research and Analysis

by Bill Bergman

In modern financial history, there hasn't been anything like Berkshire Hathaway. We think this firm's special qualities will endure to the continuing benefit of long-term shareholders.

Berkshire's origins lie in insurance and reinsurance, and we think Read more

Bulls Say

Berkshire may have seemed a little sleepy in recent years, but this reinsurance giant was waiting for better opportunities. The caution proved valuable, and the firm is taking attractive new investment as well as reinsurance positions.

Berkshire has inspired lasting cultural attributes that form a durable competitive advantage, one underappreciated by critics concerned about succession at the top.

Berkshire's melding of insurance with a wide range of nonfinancial enterprises has developed a unique organizational enterprise, one that retains significant potential for taking an increasing share in the overall economy. Read more

Bears Say

Berkshire faces heightened competition for acquisitions from private-equity firms, even after the recent trials in financial markets. This will probably dent returns on Berkshire's efforts to deploy excess capital via acquisitions.

Berkshire's charismatic senior leaders are nearing retirement and simply cannot be replaced.

The conglomerate's size and frequent acquisitions complicate its reported results. This makes estimating Berkshire's fair value more uncertain and subject to error.

A conglomerate (Berkshire) shouldn't buy another conglomerate (Marmon). Read more

Strategy

Berkshire strives to insure and invest profitably over the long run. It absorbs risk in its insurance operations and puts the float to work, along with wisdom and patience, to buy and otherwise invest Read more

Management

Berkshire is led by CEO and chairman Warren Buffett and vice chairman Charles Munger, each of whom were instrumental in developing the firm's remarkable long-term record. Berkshire provides an exception to some of the rules regarding acceptable practice Read more

Profile

Berkshire Hathaway is a holding company that owns more than 70 businesses. The insurance and reinsurance operations are the heart of the firm and include reinsurers General Read more

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Weekly Market Wrap: 2/5/2010
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