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Berkshire Hathaway

NYSE:BRK.A
Snowflake Description

Excellent balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BRK.A
NYSE
$495B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. The last earnings update was 17 days ago. More info.


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BRK.A Share Price and Events
7 Day Returns
-1.2%
NYSE:BRK.A
0.3%
US Diversified Financial
0.2%
US Market
1 Year Returns
4.2%
NYSE:BRK.A
3.2%
US Diversified Financial
2.9%
US Market
BRK.A Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Berkshire Hathaway (BRK.A) -1.2% -4.3% 0.7% 4.2% 41.7% 58.1%
US Diversified Financial 0.3% -2.5% -0.3% 3.2% 41% 55.6%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • BRK.A outperformed the Diversified Financial industry which returned 3.2% over the past year.
  • BRK.A outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
BRK.A
Industry
5yr Volatility vs Market

BRK.A Value

 Is Berkshire Hathaway undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Berkshire Hathaway.

NYSE:BRK.A Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $257,910.85 * 8%
$20,540.02
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $257,910.85
Discount Rate (Cost of Equity) See below 7.9%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:BRK.A
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Diversified Financial Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.697 (1 + (1- 21%) (19.62%))
0.87
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.87 * 5.96%)
7.91%

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.

NYSE:BRK.A Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8% – 7.91%) * $257,910.85)
$132.35
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $132.35 / (7.91% - 2.73%)
$2,553.64
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $257,910.85 + $2,553.64
$260464.49
NYSE:BRK.A Discount to Share Price
Calculation Result
Value per share (USD) From above. $260,464.49
Current discount Discount to share price of $304,115.00
= -1 x ($304,115.00 - $260,464.49) / $260,464.49
-16.8%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:BRK.A PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $16,328.66
NYSE:BRK.A Share Price ** NYSE (2019-05-23) in USD $304115
United States of America Diversified Financial Industry PE Ratio Median Figure of 14 Publicly-Listed Diversified Financial Companies 20.6x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Berkshire Hathaway.

NYSE:BRK.A PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:BRK.A Share Price ÷ EPS (both in USD)

= 304115 ÷ 16,328.66

18.62x

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 overvalued 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?
Raw Data
NYSE:BRK.A PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-1.1%per year
United States of America Diversified Financial Industry PEG Ratio Median Figure of 9 Publicly-Listed Diversified Financial Companies 0.64x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:BRK.A PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.62x ÷ -1.1%

-16.79x

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?
Raw Data
NYSE:BRK.A PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $225,490.24
NYSE:BRK.A Share Price * NYSE (2019-05-23) in USD $304115
United States of America Diversified Financial Industry PB Ratio Median Figure of 21 Publicly-Listed Diversified Financial Companies 0.88x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:BRK.A PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:BRK.A Share Price ÷ Book Value per Share (both in USD)

= 304115 ÷ 225,490.24

1.35x

* 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.
X
Value checks
We assess Berkshire Hathaway's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Diversified Financial industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Diversified Financial industry average (and greater than 0)? (1 check)
  5. Berkshire Hathaway has a total score of 1/6, 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

 How is Berkshire Hathaway expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

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!
Annual Growth Rate
-1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Berkshire Hathaway expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:BRK.A Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:BRK.A Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -1.1%
NYSE:BRK.A Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.5%
United States of America Diversified Financial Industry Earnings Growth Rate Market Cap Weighted Average 0.9%
United States of America Diversified Financial Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:BRK.A Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:BRK.A Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 290,467 1
2020-12-31 277,796 27,623 2
2019-12-31 261,589 42,391 2
NYSE:BRK.A Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 250,718 37,421 26,820
2018-12-31 247,537 37,400 4,021
2018-09-30 243,567 34,784 61,964
2018-06-30 239,809 35,197 47,491
2018-03-31 234,438 34,989 39,742
2017-12-31 240,651 45,728 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
2016-12-31 215,865 32,647 24,074
2016-09-30 209,369 32,433 23,266
2016-06-30 204,436 32,812 25,496

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Berkshire Hathaway's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Berkshire Hathaway's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:BRK.A Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Berkshire Hathaway Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BRK.A Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 17,000.00 17,000.00 17,000.00 1.00
2019-12-31 25,940.00 25,940.00 25,940.00 1.00
NYSE:BRK.A Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 16,328.66
2018-12-31 2,446.17
2018-09-30 37,677.50
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Berkshire Hathaway is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Berkshire Hathaway's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Berkshire Hathaway's growth in the last year to its industry (Diversified Financial).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Berkshire Hathaway's year on year earnings growth rate has been positive over the past 5 years.
  • Berkshire Hathaway's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Berkshire Hathaway's 1-year earnings growth is negative, it can't be compared to the US Diversified Financial industry average.
Earnings and Revenue History
Berkshire Hathaway's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Berkshire Hathaway Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:BRK.A Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 250,718.00 26,820.00
2018-12-31 247,537.00 4,021.00
2018-09-30 243,567.00 61,964.00
2018-06-30 239,809.00 47,491.00
2018-03-31 234,438.00 39,742.00
2017-12-31 240,651.00 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
2016-12-31 215,865.00 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

*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).
X
Past performance checks
We assess Berkshire Hathaway's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Diversified Financial industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Berkshire Hathaway has a total score of 2/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Berkshire Hathaway's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x 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.
Raw Data

All data from Berkshire Hathaway Company Filings, last reported 1 month ago.

NYSE:BRK.A Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 372,591.00 97,199.00 114,168.00
2018-12-31 352,500.00 97,490.00 111,867.00
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
2017-12-31 351,954.00 102,587.00 115,954.00
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
  • Berkshire Hathaway's level of debt (26.1%) 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 (31.8% vs 26.1% today).
  • Debt is well covered by operating cash flow (38.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).
X
Financial health checks
We assess Berkshire Hathaway's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Berkshire Hathaway has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Berkshire Hathaway dividends. Estimated to be 0% next year.
If you bought $2,000 of Berkshire Hathaway shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:BRK.A Annualized Past and Future Dividends
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 3 Analyst Estimates (S&P Global) See Below
United States of America Diversified Financial Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 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 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:BRK.A Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 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.
Current Payout to shareholders
What portion of Berkshire Hathaway's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Berkshire Hathaway has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Berkshire Hathaway's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Berkshire Hathaway's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Berkshire Hathaway's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Warren Buffett
COMPENSATION $388,968
AGE 88
TENURE AS CEO 49.3 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, both up more than 20%.
  • 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:

3
Average Tenure
66
Average Age
  • The tenure for the Berkshire Hathaway management team is about average.
Management Team

Warren Buffett

TITLE
Chairman
COMPENSATION
$389K
AGE
88
TENURE
49.3 yrs

Marc Hamburg

TITLE
Senior VP & CFO
COMPENSATION
$2M
AGE
68

Ajit Jain

TITLE
Vice Chairman of Insurance Operations & Director
COMPENSATION
$18M
AGE
66
TENURE
1.3 yrs

Greg Abel

TITLE
Vice Chairman of Non Insurance Business Operations & Director
COMPENSATION
$18M
AGE
56
TENURE
1.3 yrs

Daniel Jaksich

TITLE
VP, Controller & Principal Accounting Officer

Mary Rhinehart

TITLE
Chairman
AGE
59
TENURE
6.5 yrs

Kerby Ham

TITLE
Treasurer

Peter Eastwood

TITLE
CEO & President of Specialty Insurance

Kara Raiguel

TITLE
CEO & President of General Re Unit
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the Berkshire Hathaway board of directors in years:

26.3
Average Tenure
70
Average Age
  • 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

Charlie Munger

TITLE
Vice Chairman
COMPENSATION
$100K
AGE
94
TENURE
41.2 yrs

Warren Buffett

TITLE
Chairman
COMPENSATION
$389K
AGE
88
TENURE
49.3 yrs

Ajit Jain

TITLE
Vice Chairman of Insurance Operations & Director
COMPENSATION
$18M
AGE
66
TENURE
1.3 yrs

Greg Abel

TITLE
Vice Chairman of Non Insurance Business Operations & Director
COMPENSATION
$18M
AGE
56
TENURE
1.3 yrs

Tony Nicely

TITLE
Chairman of GEICO
AGE
74

Matt Rose

TITLE
Executive Chairman of Burlington Northern Santa Fe
AGE
58

Mary Rhinehart

TITLE
Chairman
AGE
59

Walter Scott

TITLE
Director
COMPENSATION
$3K
AGE
87
TENURE
31.3 yrs

Tom Murphy

TITLE
Director
COMPENSATION
$7K
AGE
92
TENURE
16.3 yrs

Howard Buffett

TITLE
Director
COMPENSATION
$3K
AGE
63
TENURE
26.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Dec 18 Buy Ajit Jain Individual 18. Dec 18 18. Dec 18 67 $296,515.01 $19,866,506
X
Management checks
We assess Berkshire Hathaway's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Read This Before Selling Berkshire Hathaway Inc. (NYSE:BRK.A) Shares

So we'll take a look at whether insiders have been buying or selling shares in Berkshire Hathaway Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Happily, the Berkshire Hathaway insider decided to buy shares at close to current prices

Simply Wall St -

Is Berkshire Hathaway Inc.'s (NYSE:BRK.A) CEO Pay Fair?

How Does Warren Buffett's Compensation Compare With Similar Sized Companies. … has a market cap of US$503b, and is paying total annual CEO compensation of US$100k. … It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$100k.

Simply Wall St -

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 -

How 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 -

Here'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 -

What 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 -

Is 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 -

Who 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 -

Why 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 -

Where 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 -

BRK.A Company Info

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, stores, and distributes electricity from natural gas, coal, wind, solar, hydro, nuclear, and geothermal 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; and leases transportation equipment and furniture. Further, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring, insulation, roofing and engineered, building and engineered components, paints and coatings, and bricks and masonry products, as well as offers homebuilding and manufactured housing finance; recreational vehicles, apparel products, jewelry, and custom picture framing products; and alkaline batteries. Additionally, it manufactures castings, forgings, fasteners/fastener systems, and aerostructures; titanium, steel, and nickel; and seamless pipes and fittings. The company distributes newspapers, televisions, and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution 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
$495,337,230,257
1,635,732
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
Staff numbers
389,000
Berkshire Hathaway employees.
Industry
Multi-Sector Holdings
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 23:33
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.