Stock Price & Analysis

Based on the provided data and current market conditions, here's my analysis of whether to buy or sell BRK.A:

SELL - BRK.A appears overvalued at current levels with technical indicators suggesting downside risk.

The stock is showing bearish technical signals with RSI at 41.53 indicating weakening momentum . Additionally, Warren Buffett himself has been cautious recently, with Berkshire holding a record $325 billion in cash rather than deploying it into stocks at current valuations.

Based on the provided data and context, I'll analyze BRK.A's price prediction for 2025.

Current Market Position BRK.A closed at around $681,460 as of recent trading. The stock has shown strong performance in 2024, delivering a 25.5% return and slightly outperforming the S&P 500.

Key Growth Drivers for 2025

1. Cash Position Strength:

• Berkshire's cash pile has reached a record $325.2 billion as of Q3 2024
• This massive cash reserve provides significant flexibility for potential acquisitions and investments in 2025

2. Management Strategy:

• Greg Abel, the heir apparent, is taking more control over investment decisions
• The company has demonstrated flexibility in capital allocation between buybacks and new investments

3. Portfolio Optimization:

• Recent strategic investments including $610 million in Occidental Petroleum, Sirius XM Holdings, and VeriSign
• Continued portfolio rebalancing showing active management approach

Price Target Analysis for 2025

Based on the available data and analysis:

• Book value could approach $500,000 per Class A share by year-end 2025 if the stock market remains strong
• Trading at approximately 1.5x book value, this suggests a potential price target around $750,000 by end of 2025
• This represents roughly a 10% upside from current levels

The most likely scenario points to BRK.A reaching $750,000 by end of 2025, driven by:

• Continued strong operating profits (estimated $45 billion for 2024)
• Strategic deployment of massive cash reserves
• Potential market-beating returns from new investments

The S1 support level for BRK.A Stock is $666958.07 ,The R1 resistant level for BRK.A Stock is $704276.83.

As of the end of day on 2025-01-24, the price of BRK.A Stock was $694601.5.

The target price for BRK.A Stock according to analyst rating is 796,021, with the highest price target at 796,021 and the lowest at 796,021. Analysts have a Moderate Buy rating on BRK.A Stock overall.

The market cap of BRK.A is $383.4B.

Based on the provided data and context, I'll analyze whether BRK.A is overvalued through multiple lenses:

Valuation Metrics

• P/E ratio has decreased significantly from 12.47 in Q1 2024 to 9.32 in Q3 2024, suggesting improved valuation
• EV/EBITDA ratio remains stable around 11-13x range
• Price-to-Book ratio of 1.58 in Q3 2024 is reasonable for a diversified holding company

Financial Performance

• Revenue growth from $89.9B in Q1 to $93.0B in Q3 2024 shows steady business performance
• Net income increased substantially from $12.7B in Q1 to $26.3B in Q3 2024
• ROE improved from 13.65% to 18.52% over the same period
• Strong cash position with growing current assets from $266B to $402B

Market Sentiment Recent analyst ratings show mixed views:

• Keefe, Bruyette & Woods: Hold rating with $715,000 target
• UBS: Strong Buy rating with $715,000 target

Cash Management Berkshire holds $325 billion in cash, indicating Buffett sees limited attractive investment opportunities at current market valuations, suggesting broader market overvaluation concerns.

BRK.A is not overvalued considering its strong financial metrics, declining P/E ratio, reasonable P/B ratio, substantial cash reserves, and improving operational efficiency. The stock appears fairly valued with potential upside given its defensive characteristics and proven management track record.

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. The Company’s segments include Insurance; Railroad (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 operation of railroad systems in North America through Burlington Northern Santa Fe, LLC. The BHE segment offers regulated electric and gas utilities. The Manufacturing segment manufacturers various products, including 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.

Based on the provided data and references, here's a comprehensive analysis for BRK.A's price prediction for 2030:

Price Target Analysis

Berkshire Hathaway Class A shares are projected to reach approximately $1.2 million by 2030, driven by the company's massive cash reserves of $325 billion, strong operational performance, and strategic positioning in key sectors.

Key Growth Drivers

The prediction is supported by Berkshire's proven track record of generating market-beating returns through its diversified portfolio and operational businesses, with the company's focus shifting towards Journal Technologies as its primary growth engine. The technology subsidiary's expansion into global court systems digitization presents a substantial long-term opportunity in an underserved market.

Rationale

This price target represents approximately a 75% increase from current levels ($682,000), implying an annual compound growth rate of about 9.8% through 2030. This conservative estimate factors in Berkshire's historical performance of outperforming the S&P 500, while accounting for the company's massive size which may limit explosive growth potential.

BRK.A has a total of 396500 employees.