Does Berkshire Hathaway Have a Bright Future?

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With shares of Berkshire Hathaway (NYSE:BRKB) trading around $113, is BRKB an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Berkshire Hathaway is a publicly owned investment manager. Through its subsidiaries, the firm primarily engages in the insurance and reinsurance of property and casualty risks business. It is also involved in a freight rail transportation business, a group of utility, and energy generation and distribution businesses. Berkshire Hathaway was founded in 1889 and is based in Omaha, Nebraska.

Berkshire Hathaway, Warren Buffett’s conglomerate, has made a profit of $10 billion thus far from investments made during the financial crisis, according to the Wall Street Journal. Berkshire invested a total of $26 billion in six different companies during the crisis, including Mars Inc., Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), Swiss Re Ltd., Dow Chemical Co. (NYSE:DOW), and General Electric (NYSE:GE). Last week, Berkshire collected a $4.4 billion payment from Mars subsidiary Wrigley. “In terms of simple profitability, an average investor could have done just as well investing in the stock market if they bought during the panic period,” Buffett said in an interview Saturday.

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