Berkshire Hathaway: The Fortress Has Become A Waiting Room

Louis Gerard2.62K FollowersFollow5ShareSavePlay(9min)Comments(4)SummaryBerkshire Hathaway Inc. faces a pivotal transition under Greg Abel, emphasizing stewardship, capital discipline, and a fortress balance sheet.Operating earnings declined 6.2% to $44.5B, with insurance and industrial headwinds, while cash reserves reached a record $373.3B—nearly 40% of market cap.BRK.B’s SOTP valuation implies 11.3% upside, but scenario analysis shows limited downside; DCF suggests 10.2% downside, underscoring its defensive profile.I maintain a Hold rating for BRK.B, awaiting evidence that new leadership can restore the Buffett premium and navigate subsidiary challenges. John Pollock/iStock Editorial via Getty Images Introduction I last covered Berkshire Hathaway Inc. (BRK.A) (BRK.B) back in August with a dose of skepticism on the back of the potential Warren Buffett premium eroding. Since the company’sThis article was written byLouis Gerard2.62K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

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