Berkshire Hathaway to Have $377 Billion Cash Pile Post-Buffett Retirement
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Historical Performance: Since 1965, Berkshire Hathaway's stock has underperformed the S&P 500 only 20 times, and while it has risen just 9% through December 19 this year, it reflects its long-term growth potential despite current market conditions.
- Cash Reserves: Incoming CEO Greg Abel will have a record cash pile of $377 billion in cash and cash equivalents by 2026, providing robust support for future investment opportunities and strategic initiatives.
- Core Business Stability: Berkshire Hathaway's top-tier insurance businesses like GEICO and National Indemnity, along with Burlington Northern Santa Fe, the largest freight railroad in the U.S., generate consistent cash flow, ensuring resilience amid market fluctuations.
- Investor Confidence: Despite concerns about the future post-Buffett, the selection of Greg Abel as successor by Buffett himself instills confidence that the company will continue its successful trajectory, warranting patience and trust from investors.
Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRK.A is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 745000.000
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Current: 745000.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
