Stock Price & Analysis

Based on the provided data and recent market context, I'll analyze whether to buy or sell BRK.B stock.

Technical Analysis

Recent Developments & Analysis

1. Cash Position & Investment Strategy:

• Berkshire has amassed a record $334 billion in cash, indicating Buffett's cautious market view
• The company was a net seller in 2024, selling over $143 billion in stocks while only purchasing $9 billion
• Halted share buybacks in Q3 2024 for the first time since 2018, suggesting potential overvaluation concerns

2. Operating Performance:

• Strong 2024 performance with operating income rising 27% to $47.4 billion
• Core insurance business performed well with no major disasters in 2024
• Insurance underwriting operating profit increased 31% to $8 billion

3. Valuation Metrics:

• Currently trading at 1.7x price-to-book (P/B)
• Forward P/E ratio of 25x based on 2025 analyst estimates
• Historically, Buffett used P/B thresholds of 1.1-1.2x for buybacks before eliminating specific thresholds

4. Analyst Consensus:

• Moderate Buy rating from 6 analysts (2 Strong Buy, 4 Hold)
• Mean price target of $497.75, representing 4.3% upside potential
• Street-high target of $536 suggests 12.3% upside potential

Conclusion: SELL

Given the current market conditions and analysis, I recommend selling BRK.B stock for the following reasons:

• Buffett's own actions (massive stock sales, halted buybacks, record cash position) suggest market overvaluation concerns
• Trading at relatively high valuation multiples compared to historical levels
• Limited upside potential based on analyst targets
• Current price levels near all-time highs suggest better entry points may emerge in the future

Based on the provided data and analysis of BRK.B's performance and market conditions, here is a price prediction for 2025:

Technical Analysis

Key Factors Supporting the Prediction:

1. Current Market Position

• BRK.B has shown strong performance with operating earnings rising 27% to $47.4 billion in 2024
• The company maintains a record cash position of $334 billion, indicating significant financial strength

2. Management Strategy

• Warren Buffett has been notably cautious, selling over $143 billion in stock while only purchasing $9 billion in 2024
• The company halted share buybacks for the first time since 2018, suggesting current valuations may be high

3. Valuation Metrics

• Currently trading at approximately 1.7x price-to-book value
• Forward P/E ratio of 25x based on 2025 analyst estimates

Price Target for 2025:

Based on the analysis of current trends and market conditions, BRK.B is expected to trade in the range of $485-515 by end of 2025. This projection is supported by:

• Strong core business performance in insurance and energy sectors
• Significant cash reserves providing flexibility for opportunistic investments
• Conservative management approach protecting downside risk
• Historical performance showing 21.2% gain over the past year

The most likely scenario points to moderate growth as the company maintains its defensive positioning while selectively deploying its substantial cash reserves when opportunities arise.

The S1 support level for BRK.B Stock is $482.82 ,The R1 resistant level for BRK.B Stock is $514.16.

As of the end of day on 2025-03-06, the price of BRK.B Stock was $498.5.

The target price for BRK.B Stock according to analyst rating is 557.00, with the highest price target at 557.00 and the lowest at 557.00. Analysts have a Moderate Buy rating on BRK.B Stock overall.

The market cap of BRK.B is $661.6B.

Based on the provided data and recent market developments, here's a concise 5-sentence analysis of BRK.B's valuation:

BRK.B appears to be trading at elevated levels with a forward P/E ratio of 25x 2025 analyst estimates and a price-to-book ratio of 1.7x, which are historically high multiples for the company. Warren Buffett's recent actions strongly suggest he views both the broader market and Berkshire's stock as overvalued, evidenced by his decision to halt share buybacks for the first time since 2018 and accumulate a record $334 billion cash position while being a net seller of stocks in 2024. The company's core operations remain strong with operating income rising 27% to $47.4 billion in 2024, but Buffett's aggressive selling of stocks (over $143 billion sold versus only $9 billion purchased in 2024) indicates concerns about current valuations. Notably, Buffett has reduced exposure to certain sectors like banking, selling down positions in Bank of America and Citigroup, while only making selective additions in defensive industries like spirits maker Constellation Brands. Given Buffett's own actions and the historically high valuation metrics, BRK.B appears overvalued at current levels, particularly since Buffett himself is choosing to hold cash rather than buy back his own company's shares.

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 context, here's a price prediction analysis for BRK.B stock by 2030:

Berkshire Hathaway's Class B shares are projected to reach $775 by early 2026 according to analyst estimates, suggesting a continued upward trajectory. Given Berkshire's strong operating earnings growth of 27% to $47.4 billion in 2024 and its proven track record of compounding capital through quality business acquisitions, BRK.B stock could reasonably reach $950-1,000 by 2030. This projection is supported by the company's massive $334 billion cash position that provides significant firepower for value-creating acquisitions and investments in the coming years.

BRK.B has a total of 396500 employees.