BRK.B is a sell/avoid; limited upside vs current price makes it barely better than Treasuries despite low risk.
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Next is Berkshire. Our favorite, Berkshire, has a market capitalization of approximately 1 trillion. I received a lot of criticism because of this. In a recent analysis, I said: "When compared to other opportunities, Berkshire is now a sell option."
Because when you look at a net income of 45 billion, a projected growth of 6% in the future, and an average profitability ratio of 17, they will achieve 80 billion in 10 years x 17, and the market value will be 1.3 trillion, which is not far from its current state.
Therefore, I said, "It's a risk, not a purchase." However, we can be sure that Berkshire will achieve results, perhaps a little more or a little less. Let's assume it will continue to grow at 6% with low risk and a solid balance sheet.
So, it's slightly better than Treasury bonds, but not far off. The risks are very low in all cases. Improving Berkshire Centre is here.
What this channel has said about $BRK.B
Value Investing with Sven Carlin, Ph.D. has 5 calls on this stock; only the adjacent ones are shown.