Berkshire Hathaway: Ready To Profit From Rising Bankruptcies
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RI Research1.59K FollowersFollow5ShareSavePlay(8min)Comments(2)SummaryBerkshire Hathaway offers compelling diversification and defensive exposure, backed by a $382 billion cash pile for opportunistic acquisitions.BRK.B is attractively valued at a TTM P/E of 22, below its historical average, with an 18% upside to a $590 price target for 12–18 months.Even with a 5–10% FY2026 earnings miss, the company's margin of safety remains robust, supporting double-digit upside.Leadership transition risk exists as Warren Buffett retires, with recent executive departures potentially impacting strategic decision quality. ablokhin/iStock Editorial via Getty Images The number of large U.S. corporate bankruptcies in 2025 is likely to hit record levels for the last fifteen years, and the macro setup suggests this trend will likely snowball in 2026. With its $382 billion cash pileThis article was written byRI Research1.59K FollowersFollowWith a decade at a Big 4 audit firm specializing in the banking, mining, and energy sectors, I bring a strong foundation in finance and strategy. Currently, I serve as the Head of Finance for a leading owner and operator of retail real estate, where I oversee complex financial operations and strategy. I’ve been an active investor in the U.S. stock market for 13 years, starting with my very first paycheck. Over time, my portfolio has evolved to reflect a balanced approach, with a growing focus on value stocks while maintaining solid exposure to growth opportunities. My investment philosophy is rooted in thorough research and a long-term perspective, which has helped me navigate various market cycles successfully. I aim to bring value to Seeking Alpha by uncovering promising under-the-radar stocks that may not yet be on the broader market’s radar. My background in auditing and finance, combined with years of hands-on investing experience, allows me to provide unique insights and actionable ideas for fellow investors.Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRK.B either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.