Current price – $408.8 Target price – $455.6 Growth potential – 11.4% 🔥 Investment horizon – 1 year
Berkshire Hathaway is an American investment holding company that owns assets in various sectors of the economy. The company is managed by Warren Buffett, one of the most famous and successful investors in the world. Berkshire Hathaway is focused on long-term earnings growth. After the recent correction, attractive conditions have emerged for purchasing the company's securities. Berkshire Hathaway's stocks fair value is $455.6, with an upside of 11.4%.
Investment thesis
🔼 Strong financial performance. Berkshire Hathaway's 4Q2023 financial results were impressive. The company's net earnings attributable to shareholders amounted to $37.57 bln, which is more than double the same figure for the previous year. Operating earnings, which includes income from businesses in insurance, railroads and utilities, rose 28% to $8.48 bln. For the whole of 2023, Berkshire Hathaway earned $96.2 bln versus a loss a year earlier, and operating earnings rose from $30.9 to $37.4 bln. In addition, in 4Q2023 the company had record cash reserves of $167.6 bln. This creates good preconditions for distributing part of it to shareholders through share repurchase programs.
🔼 Attractive entry point. Following a recent correction, Berkshire Hathaway’s Class B shares are trading at $408.8, creating an attractive buy with a price target of $455.6.
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