Berkshire Hathaway
Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. The last earnings update was 108 days ago. More info.
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BRK.A Share Price and Events
7 Day Returns
1 Year Returns
BRK.A Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Berkshire Hathaway (BRK.A) | -0.3% | 0.3% | -2.8% | 1.9% | 56.4% | 80.3% |
| US Diversified Financial | 1.2% | 0.7% | -2.2% | -0% | 54.5% | 75.5% |
| US Market | 2.3% | 4.2% | 5.6% | 0.9% | 43.6% | 40.9% |
1 Year Return vs Industry and Market
- BRK.A outperformed the Diversified Financial industry which returned -0% over the past year.
BRK.A Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Berkshire Hathaway
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Berkshire Hathaway.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity = $250,355.96 * 7.4% |
$18,550.87 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 2 analysts. | $250,355.96 |
| Discount Rate (Cost of Equity) | See below | 8.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Diversified Financial Unlevered Beta | Simply Wall St/ S&P Global | 0.69 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.69 (1 + (1- 21%) (19.31%)) |
0.795 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.8 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 7.27%) |
8.55% |
Discounted Cash Flow Calculation for NYSE:BRK.A using Excess Returns Model Model
The calculations below outline how an intrinsic value for Berkshire Hathaway is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (7.4% – 8.55%) * $250,355.96) |
$-2,844.55 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $-2,844.55 / (8.55% - 2.73%) |
$-48,909.01 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $250,355.96 + $-48,909.01 |
$201446.95 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $201,446.95 |
| Current discount | Discount to share price of
$307,315.00
= -1 x ($307,315.00 - $201,446.95) / $201,446.95 |
-52.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Berkshire Hathaway is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Berkshire Hathaway's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Berkshire Hathaway's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $37,677.52 |
| NYSE:BRK.A Share Price ** | NYSE (2019-02-19) in USD | $307315 |
| United States of America Diversified Financial Industry PE Ratio | Median Figure of 11 Publicly-Listed Diversified Financial Companies | 19.33x |
| United States of America Market PE Ratio | Median Figure of 3,044 Publicly-Listed Companies | 17.23x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Berkshire Hathaway.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:BRK.A Share Price ÷ EPS (both in USD) = 307315 ÷ 37,677.52 |
8.16x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Berkshire Hathaway is good value based on earnings compared to the US Diversified Financial industry average.
- Berkshire Hathaway is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Berkshire Hathaway's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 8.16x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
-33.5%per year |
| United States of America Diversified Financial Industry PEG Ratio | Median Figure of 7 Publicly-Listed Diversified Financial Companies | 0.8x |
| United States of America Market PEG Ratio | Median Figure of 2,118 Publicly-Listed Companies | 1.41x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 8.16x ÷ -33.5% |
-0.24x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Berkshire Hathaway earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Berkshire Hathaway's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $228,648.41 |
| NYSE:BRK.A Share Price * | NYSE (2019-02-19) in USD | $307315 |
| United States of America Diversified Financial Industry PB Ratio | Median Figure of 23 Publicly-Listed Diversified Financial Companies | 0.93x |
| United States of America Market PB Ratio | Median Figure of 5,132 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:BRK.A Share Price ÷ Book Value per Share (both in USD) = 307315 ÷ 228,648.41 |
1.34x |
* Primary Listing of Berkshire Hathaway.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Berkshire Hathaway is overvalued based on assets compared to the US Diversified Financial industry average.
Value checks
We assess Berkshire Hathaway's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Diversified Financial industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Diversified Financial industry average (and greater than 0)? (1 check) Berkshire Hathaway has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
BRK.A Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Berkshire Hathaway's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- Berkshire Hathaway's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Berkshire Hathaway's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:BRK.A Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | -33.5% |
| NYSE:BRK.A Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 4.8% |
| United States of America Diversified Financial Industry Earnings Growth Rate | Market Cap Weighted Average | -29.3% |
| United States of America Diversified Financial Industry Revenue Growth Rate | Market Cap Weighted Average | 4.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 12.7% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 277,904 | 26,477 | 3 | |
| 2019-12-31 | 265,115 | 25,238 | 4 | |
| 2018-12-31 | 256,178 | 34,984 | 3 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 241,838 | 34,832 | 61,964 |
| 2018-06-30 | 238,080 | 35,245 | 47,491 |
| 2018-03-31 | 232,709 | 35,037 | 39,742 |
| 2017-12-31 | 239,289 | 45,776 | 44,940 |
| 2017-09-30 | 236,850 | 44,937 | 18,675 |
| 2017-06-30 | 232,722 | 43,893 | 21,806 |
| 2017-03-31 | 229,095 | 43,376 | 22,545 |
| 2016-12-31 | 214,596 | 32,535 | 24,074 |
| 2016-09-30 | 209,369 | 32,433 | 23,266 |
| 2016-06-30 | 204,436 | 32,812 | 25,496 |
| 2016-03-31 | 201,826 | 32,982 | 24,508 |
| 2015-12-31 | 200,060 | 31,491 | 24,083 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Berkshire Hathaway Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 16,200.00 | 16,200.00 | 16,200.00 | 1.00 |
| 2019-12-31 | 15,400.00 | 15,400.00 | 15,400.00 | 1.00 |
| 2018-12-31 | 21,282.00 | 21,282.00 | 21,282.00 | 1.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 37,677.52 |
| 2018-06-30 | 28,872.23 |
| 2018-03-31 | 24,162.97 |
| 2017-12-31 | 27,325.54 |
| 2017-09-30 | 11,356.33 |
| 2017-06-30 | 13,261.81 |
| 2017-03-31 | 13,712.99 |
| 2016-12-31 | 14,645.10 |
| 2016-09-30 | 14,155.24 |
| 2016-06-30 | 15,513.40 |
| 2016-03-31 | 14,913.74 |
| 2015-12-31 | 14,656.31 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Berkshire Hathaway's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Berkshire Hathaway has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
BRK.A Past Performance
How has Berkshire Hathaway performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Berkshire Hathaway has delivered over 20% year on year earnings growth in the past 5 years.
- Berkshire Hathaway's 1-year earnings growth exceeds its 5-year average (231.8% vs 20.3%)
- Berkshire Hathaway's earnings growth has exceeded the US Diversified Financial industry average in the past year (231.8% vs 18.6%).
Earnings and Revenue History
All data from Berkshire Hathaway Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 241,838.00 | 61,964.00 | ||
| 2018-06-30 | 238,080.00 | 47,491.00 | ||
| 2018-03-31 | 232,709.00 | 39,742.00 | ||
| 2017-12-31 | 239,289.00 | 44,940.00 | ||
| 2017-09-30 | 236,850.00 | 18,675.00 | ||
| 2017-06-30 | 232,722.00 | 21,806.00 | ||
| 2017-03-31 | 229,095.00 | 22,545.00 | ||
| 2016-12-31 | 214,596.00 | 24,074.00 | ||
| 2016-09-30 | 209,369.00 | 23,266.00 | ||
| 2016-06-30 | 204,436.00 | 25,496.00 | ||
| 2016-03-31 | 201,826.00 | 24,508.00 | ||
| 2015-12-31 | 200,060.00 | 24,083.00 | ||
| 2015-09-30 | 196,571.00 | 22,760.00 | ||
| 2015-06-30 | 197,420.00 | 17,949.00 | ||
| 2015-03-31 | 193,897.00 | 20,331.00 | ||
| 2014-12-31 | 189,692.00 | 19,872.00 | ||
| 2014-09-30 | 187,543.00 | 20,707.00 | ||
| 2014-06-30 | 180,785.00 | 21,143.00 | ||
| 2014-03-31 | 177,575.00 | 19,289.00 | ||
| 2013-12-31 | 176,611.00 | 19,476.00 | ||
| 2013-09-30 | 175,097.00 | 19,037.00 | ||
| 2013-06-30 | 170,379.00 | 17,904.00 | ||
| 2013-03-31 | 164,571.00 | 16,471.00 | ||
| 2012-12-31 | 159,427.00 | 14,824.00 | ||
| 2012-09-30 | 152,872.00 | 13,321.00 | ||
| 2012-06-30 | 146,368.00 | 11,679.00 | ||
| 2012-03-31 | 144,945.00 | 11,988.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Berkshire Hathaway has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Berkshire Hathaway used its assets more efficiently than the US Diversified Financial industry average last year based on Return on Assets.
- Berkshire Hathaway's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Berkshire Hathaway's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Diversified Financial industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Berkshire Hathaway has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
BRK.A Health
How is Berkshire Hathaway's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Berkshire Hathaway's finances.
The net worth of a company is the difference between its assets and liabilities.
- Berkshire Hathaway is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Berkshire Hathaway's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Berkshire Hathaway Company Filings, last reported 4 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 379,419.00 | 97,640.00 | 99,750.00 |
| 2018-06-30 | 361,758.00 | 96,773.00 | 106,524.00 |
| 2018-03-31 | 351,052.00 | 99,085.00 | 102,149.00 |
| 2017-12-31 | 351,954.00 | 102,587.00 | 106,885.00 |
| 2017-09-30 | 311,852.00 | 101,490.00 | 101,047.00 |
| 2017-06-30 | 304,093.00 | 102,270.00 | 91,112.00 |
| 2017-03-31 | 296,280.00 | 103,956.00 | 84,998.00 |
| 2016-12-31 | 285,428.00 | 101,644.00 | 74,858.00 |
| 2016-09-30 | 272,615.00 | 101,798.00 | 72,162.00 |
| 2016-06-30 | 266,258.00 | 101,413.00 | 64,824.00 |
| 2016-03-31 | 261,837.00 | 101,539.00 | 56,279.00 |
| 2015-12-31 | 258,627.00 | 84,289.00 | 64,618.00 |
| 2015-09-30 | 251,321.00 | 84,911.00 | 60,857.00 |
| 2015-06-30 | 249,202.00 | 84,578.00 | 64,254.00 |
| 2015-03-31 | 244,839.00 | 83,795.00 | 61,720.00 |
| 2014-12-31 | 243,027.00 | 79,890.00 | 60,975.00 |
| 2014-09-30 | 240,302.00 | 74,812.00 | 59,785.00 |
| 2014-06-30 | 236,760.00 | 74,087.00 | 52,592.00 |
| 2014-03-31 | 230,289.00 | 73,223.00 | 46,040.00 |
| 2013-12-31 | 224,485.00 | 72,224.00 | 45,833.00 |
| 2013-09-30 | 211,431.00 | 65,749.00 | 40,028.00 |
| 2013-06-30 | 204,988.00 | 63,953.00 | 33,780.00 |
| 2013-03-31 | 202,106.00 | 63,249.00 | 46,987.00 |
| 2012-12-31 | 191,588.00 | 62,736.00 | 44,928.00 |
| 2012-09-30 | 189,074.00 | 62,509.00 | 45,939.00 |
| 2012-06-30 | 181,715.00 | 61,132.00 | 39,410.00 |
| 2012-03-31 | 180,269.00 | 61,835.00 | 36,252.00 |
- Berkshire Hathaway's level of debt (25.7%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (31.1% vs 25.7% today).
- Debt is well covered by operating cash flow (35.7%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 9x coverage).
Financial health checks
We assess Berkshire Hathaway's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Berkshire Hathaway has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
BRK.A Dividends
What is Berkshire Hathaway's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Berkshire Hathaway
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Berkshire Hathaway's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Berkshire Hathaway's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United States of America Diversified Financial Industry Average Dividend Yield | Market Cap Weighted Average of 7 Stocks | 1.9% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2000 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | 0.00 | 1.00 |
| 2019-12-31 | 0.00 | 1.00 |
| 2018-12-31 | 0.00 | 1.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Berkshire Hathaway has not reported any payouts.
- Unable to verify if Berkshire Hathaway's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Berkshire Hathaway's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Berkshire Hathaway afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Berkshire Hathaway has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
BRK.A Management
CEO
| COMPENSATION | $100,000 |
| AGE | 88 |
| TENURE AS CEO | 49.1 years |
CEO Bio
Mr. Warren E. Buffett has been the Chairman, Chief Executive Officer and President of Berkshire Hathaway Inc. since 1970. Mr. Buffett is the Owner of IMC Group. He serves as Manager and Member of the Board of Managers at Burlington Northern Santa Fe, LLC. He has over 43 years of experience as Chairman and Chief Executive Officer of publicly traded and private companies, providing the board of directors with a strong background in finance, investing and other complex subjects. His extensive experience in investing and building companies provides the board of directors with strong leadership and an investor’s perspective. He served as the Chief Executive Officer and Interim Chairman of Salomon Inc. from August 18, 1991 to June 3, 1992 and Chief Executive Officer and Interim Chairman at Salomon Brothers Inc. from August 18, 1991 to May 27, 1992. He served as an Investment Salesman from Buffett-Falk & Co., Omaha from 1951 to 1954. He served as a Securities Analyst at Graham-Newman Corp., New York from 1954 to 1956. He served as a General Partner at Buffett Partnership, Ltd. from 1956 to 1969. Mr. Buffett serves as the Chairman of Borsheim Jewelry Company, Inc. He has been Director of Berkshire Hathaway Inc. since 1965, Citigroup Global Markets Holdings Inc. since 1987. He has been a Director of Precision Castparts Corp. since January 29, 2016. He has been a Director of The Lubrizol Corporation since September 16, 2011, Berkshire Hathaway Energy Company since March 2000 and Hawk Acquisition Intermediate Corporation II since 2013. He serves as a Trustee of Bill & Melinda Gates Foundation and Grinnell College. He serves as a Life Trustee of The Urban Institute. He was an Independent Director at The Kraft Heinz Company from June 2013 to April 23, 2018. He was a Director of Kraft Heinz Intermediate Corporation II from 2013 to April 23, 2018. He was a Director of The Kraft Heinz Foods Company from June 07, 2013 to April 23, 2018. He served as a Director of H. J. Heinz Company since June 7, 2013 and H. J. Heinz Corporation II from June 2013 to July 2015. He served as a Lead Director of Graham Holdings Company until May 12, 2011 and its Director from May 11, 1974 to January 3, 1986 again from May 1996 to May 12, 2011. He served as a Director of The Washington Post Company from May 1996 to May 2011. He served as a Director of The Coca-Cola Company from 1989 to April 2006. He served as a Director of The Gillette Company, Inc. He is a Member of The American Academy of Arts and Sciences. Mr. Buffett received a Master's degree in Economics from Columbia University in 1951, a B.S. degree from University of Nebraska in 1950, attended the Wharton School of Finance at University of Pennsylvania from 1947 to 1949 and graduated from Woodrow Wilson High School, Washington, D.C., in 1947.
CEO Compensation
- Warren's compensation has been consistent with company performance over the past year.
- Warren's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Berkshire Hathaway management team in years:
- The average tenure for the Berkshire Hathaway management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Warren Buffett
Chairman
$100K
88
49.1 yrs
Marc Hamburg
Senior VP & CFO
$2M
68
Daniel Jaksich
VP, Controller & Principal Accounting Officer
Ajit Jain
Vice Chairman of Insurance Operations & Director
66
1.1 yrs
Greg Abel
Vice Chairman of Non Insurance Business Operations & Director
56
Tony Nicely
Chairman & CEO of GEICO
74
26.1 yrs
Mary Rhinehart
Chairman
59
6.3 yrs
Kerby Ham
Treasurer
Peter Eastwood
CEO & President of Specialty Insurance
Kara Raiguel
CEO & President of General Re Unit
2.8 yrs
Board of Directors Tenure
Average tenure and age of the Berkshire Hathaway board of directors in years:
- The average tenure for the Berkshire Hathaway board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Warren Buffett
Chairman
$100K
88
49.1 yrs
Charlie Munger
Vice Chairman
$100K
94
40.9 yrs
Ajit Jain
Vice Chairman of Insurance Operations & Director
66
1.1 yrs
Greg Abel
Vice Chairman of Non Insurance Business Operations & Director
56
Tony Nicely
Chairman & CEO of GEICO
74
Matt Rose
Executive Chairman of Burlington Northern Santa Fe
58
Mary Rhinehart
Chairman
59
Walter Scott
Director
$3K
87
31.1 yrs
Tom Murphy
Director
$6K
92
16.1 yrs
Howard Buffett
Director
$3K
63
26.1 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Berkshire Hathaway insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 20. Dec 18 | Buy | Ajit Jain | Individual | 18. Dec 18 | 18. Dec 18 | 67 | $296,515.01 | $19,866,506 | ||
Management checks
We assess Berkshire Hathaway's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Berkshire Hathaway has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
BRK.A News
Simply Wall St News
There's An Opportunity With Berkshire Hathaway Inc. (NYSE:BRK.A)
I'm talking about the well-proven, robust track record Berkshire Hathaway Inc.. … See our latest analysis for Berkshire Hathaway. … Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses
Simply Wall St - – Full articleHow Much Are Berkshire Hathaway Inc. (NYSE:BRK.A) Insiders Spending On Buying Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Berkshire Hathaway Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'? … The Last 12 Months Of Insider Transactions At Berkshire Hathaway.
Simply Wall St - – Full articleHere's How P/E Ratios Can Help Us Understand Berkshire Hathaway Inc. (NYSE:BRK.A)
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Berkshire Hathaway Inc.'s (NYSE:BRK.A) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Berkshire Hathaway's Price To Earnings Ratio
Simply Wall St - – Full articleWhat Kind Of Investor Owns Most Of Berkshire Hathaway Inc (NYSE:BRK.A)?
The big shareholder groups in Berkshire Hathaway Inc (NYSE:BRK.A) have power over the company. … Berkshire Hathaway is a pretty big company. … Taking a look at the our data on the ownership groups (below), it's seems that.
Simply Wall St - – Full articleIs Berkshire Hathaway Inc (NYSE:BRK.A) Excessively Paying Its CEO?
First, this article will compare CEO compensation with compensation at other large companies. … How Does Warren Buffett's Compensation Compare With Similar Sized Companies. … According to our data, Berkshire Hathaway Inc has a market capitalization of US$529.0b, and pays its CEO total annual compensation worth US$100k
Simply Wall St - – Full articleWho Are The Largest Shareholders In Berkshire Hathaway Inc (NYSE:BRK.A)?
I am going to take a deep dive into Berkshire Hathaway Inc’s (NYSE:BRK.A) most recent ownership structure, not a frequent subject of discussion among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.
Simply Wall St - – Full articleWhy Berkshire Hathaway Inc (NYSE:BRK.A) Could Be A Buy
Today we're going to take a look at the well-established Berkshire Hathaway Inc (NYSE:BRK.A). … Let’s take a look at Berkshire Hathaway’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change … View out our latest analysis for Berkshire Hathaway
Simply Wall St - – Full articleWhere Berkshire Hathaway Inc (NYSE:BRK.A) Stands In Terms Of Earnings Growth Against Its Industry
Today I will assess BRK.A's recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. … How BRK.A fared against its long-term earnings performance and its industry. … BRK.A's trailing twelve-month earnings (from 31 March 2018) of US$39.74b has
Simply Wall St - – Full articleDoes Berkshire Hathaway Inc's (NYSE:BRK.A) Past Performance Indicate A Stronger Future?
Given that these values are relatively nearsighted, I have computed an annualized five-year figure for BRK.A's earnings, which stands at US$20.36B This means on average, Berkshire Hathaway has been able to increasingly raise its profits over the past few years as well. … Looking at growth from a sector-level, the US diversified financial industry has been growing its average earnings by double-digit 14.60% over the past year, and 13.59% over the previous five years. … I recommend you continue to research Berkshire Hathaway to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for BRK.A’s future growth?
Simply Wall St - – Full articleWhat’s Ahead For Berkshire Hathaway Inc (NYSE:BRK.A)?
Berkshire Hathaway Inc (NYSE:BRK.A), a US$491.07B large-cap, is a financial services company operating in an industry, which tends to be appealing to risk-averse investors attracted to steady revenues, low volatility and high dividend yields. … Financial services analysts are forecasting for the entire industry, a fairly unexciting growth rate of 7.12% in the upcoming year , and a strong near-term growth of 19.22% over the next couple of years. … However, analysts are not expecting this industry-beating trend to continue, with future growth expected to be -56.63% compared to the wider diversified financial services sector growth hovering of 7.12%, next year.
Simply Wall St - – Full articleBRK.A Company Info
Map
Description
Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. It provides property and casualty insurance and reinsurance, as well as life, accident, and health reinsurance; and operates railroad systems in North America. The company also generates, transmits, and distributes electricity primarily from solar, wind, geothermal, and hydro sources; operates natural gas distribution and storage facilities, interstate pipelines, and compressor and meter stations; and holds interest in coal mining assets. In addition, it offers real estate brokerage services; invests in fixed-income and equity instruments; and engages in manufactured housing and finance business, leasing of transportation equipment, and furniture leasing activities. Further, the company manufactures boxed chocolates and other confectionery products; specialty chemicals and metal cutting tools; flooring, insulation, roofing and engineered, building and engineered components, paints and coatings, and bricks and masonry products; recreational vehicles, apparel products, jewelry, and custom picture framing products; and alkaline batteries. Additionally, it manufactures castings and forged components, machined airframe components, and engineered critical fasteners; airfoil castings; titanium and nickel; and seamless pipes, fittings, and forgings. The company distributes newspapers, televisions, and information; franchises and services quick service restaurants; distributes electronic components; and offers steel and logistics services, professional aviation training programs, and fractional aircraft ownership programs. In addition, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle accessories. The company was founded in 1889 and is headquartered in Omaha, Nebraska.
Details
| Name: | Berkshire Hathaway Inc. |
| BRK.A | |
| Exchange: | NYSE |
| Founded: | 1889 |
| $505,621,479,715 | |
| 1,642,134 | |
| Website: | http://www.berkshirehathaway.com |
| Address: |
Berkshire Hathaway Inc. 3555 Farnam Street, Omaha, Nebraska, 68131, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | BRK.A | Class A Common Shares | New York Stock Exchange | US | USD | 14. Oct 1976 | |
| DB | BRH | Class A Common Shares | Deutsche Boerse AG | DE | EUR | 14. Oct 1976 | |
| XTRA | BRH | Class A Common Shares | XETRA Trading Platform | DE | EUR | 14. Oct 1976 | |
| LSE | 0HN0 | Class A Common Shares | London Stock Exchange | GB | USD | 14. Oct 1976 | |
| WBAG | BRKA | Class A Common Shares | Wiener Boerse AG | AT | EUR | 14. Oct 1976 | |
| NYSE | BRK.B | Class B Common Shares | New York Stock Exchange | US | USD | 09. May 1996 | |
| BOVESPA | BERK34 | BDR EACH REPR 1 CLASS 'B' COM STK | Bolsa de Valores de Sao Paulo | BR | BRL | 28. Oct 2013 | |
| DB | BRYN | Class B Common Shares | Deutsche Boerse AG | DE | EUR | 09. May 1996 | |
| XTRA | BRYN | Class B Common Shares | XETRA Trading Platform | DE | EUR | 09. May 1996 | |
| LSE | 0R37 | Class B Common Shares | London Stock Exchange | GB | USD | 09. May 1996 | |
| SWX | BRK/B | Class B Common Shares | SIX Swiss Exchange | CH | CHF | 09. May 1996 | |
| WBAG | BRKB | Class B Common Shares | Wiener Boerse AG | AT | EUR | 09. May 1996 | |
| BMV | BRKB * | Class B Common Shares | Bolsa Mexicana de Valores | MX | MXN | 09. May 1996 |
Number of employees
Current staff
Industry
| Multi-Sector Holdings | |
| Diversified Financials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/20 04:29 |
| End of day share price update: | 2019/02/19 00:00 |
| Last estimates confirmation: | 2019/02/15 |
| Last earnings filing: | 2018/11/04 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
