Berkshire Hathaway Inc. (NYSE: BRK.B) stands as a diversified holding company with a market capitalization of approximately $1.08 trillion as of September 2026. The stock trades near $508 per share with a trailing P/E of just 12.63, representing a significant valuation discount compared to technology peers.
Under new CEO Greg Abel, who succeeded Warren Buffett in early 2026, Berkshire continues to demonstrate resilience. Q2 2026 operating earnings reached $12.98 billion, up 16.3% year-over-year. Net earnings more than doubled to $25.67 billion, driven by investment gains.
The company operates through diverse segments: Insurance (GEICO, reinsurance), Railroad (BNSF), Energy (BHE), Manufacturing, Service and Retailing, and McLane distribution. Berkshire employs 387,800 people globally.
Stock Price Performance
Current Price and Historical Performance
| Metric | Value | Date |
|---|---|---|
| Last Close | $508.13 | September 3, 2026 |
| 52-Week Range | $464.01 – $537.74 | – |
| Year-to-Date Return | +1.09% | – |
| Market Cap | $1.08 trillion | – |
| Beta (5-Year) | 0.61 | – |
Source: Yahoo Finance, StockAnalysis
Berkshire’s stock exhibits low volatility. The beta of 0.61 indicates price movements are about 40% less volatile than the overall market. The stock trades near its 50-day moving average of $502.78 and above its 200-day moving average of $492.40.
Recent Price Action
| Date | Close | Change | Volume |
|---|---|---|---|
| Sep 3, 2026 | $508.13 | +0.57% | 3.81M |
| Sep 2, 2026 | $505.24 | +0.58% | 3.29M |
| Sep 1, 2026 | $502.33 | -0.34% | 4.20M |
| Aug 31, 2026 | $504.03 | -0.19% | 4.56M |
| Aug 28, 2026 | $505.00 | +0.26% | 4.83M |
Source: StockAnalysis
Financial Performance
Annual Financial Results (FY2025)
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | $371.44B | $371.43B | ~0% |
| Net Income | $66.97B | $89.00B | -24.75% |
| Operating Earnings | $10.20B | ~$14.5B | -29.6% |
Source: 163.com, Marketscreener
FY2025 revenue remained essentially flat year-over-year at $371.44 billion. Net income declined to $66.97 billion from $88.995 billion in FY2024, primarily due to lower investment gains. Operating earnings fell nearly 30% to $102 billion.
Q2 FY2026 Results (Ended June 30, 2026)
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total Revenue | $101.81B | $92.52B | +10.0% |
| Operating Earnings | $12.98B | $11.16B | +16.3% |
| Net Income | $25.67B | $12.37B | +107.5% |
| EPS (Class B) | $6.02 | ~$5.73 | +5.1% |
Source: Nasdaq, Earnings Whispers
Q2 2026 represented a strong rebound. Revenue grew 10% year-over-year to $101.81 billion. Operating earnings increased 16.3% to $12.98 billion. Net earnings more than doubled to $25.67 billion, largely due to $12.68 billion in investment gains.
The company beat consensus EPS estimates of $5.24 by 14.89%.
Segment Performance (Q2 2026)
| Segment | Revenue | Key Performance |
|---|---|---|
| Insurance & Other | $88.5B | +10.1% YoY; underwriting earnings $1.7B |
| Railroad (BNSF) | $5.9B | +14.6% YoY; operating earnings $2.2B |
| Manufacturing, Service & Retailing | $61.5B | +15.2% YoY; pre-tax earnings +25.8% |
Source: Nasdaq
Insurance & Other revenues rose 10.1% to $88.5 billion. Insurance underwriting produced $1.7 billion in operating earnings, down 13.1% year-over-year.
BNSF Railroad revenues grew 14.6% to $5.9 billion. Car/unit volume increased 6.5%, while average revenue per car/unit rose 7.6%. Operating earnings increased 12.7% to $2.2 billion.
Manufacturing, Service and Retailing revenues surged 15.2% to $61.5 billion. Pre-tax earnings jumped 25.8% to $5.8 billion.
Financial Position
| Metric | Value |
|---|---|
| Cash & Equivalents | $365.5B |
| Shareholders’ Equity | $750.2B |
| Insurance Float | ~$177.5B |
| Debt/Equity Ratio | 0.17 |
Source: Yahoo Finance, Nasdaq
Berkshire maintains an exceptionally strong balance sheet. Cash and equivalents totaled $365.5 billion as of Q2 2026. Shareholders’ equity stood at $750.2 billion, up 4.2% from December 2025. The debt-to-equity ratio of 0.17 indicates minimal leverage.
Analyst Price Targets and Ratings
Consensus Overview
According to 4 analysts polled by S&P Global, Berkshire Hathaway stock has a consensus rating of “Buy” with an average price target of $547.67.
| Rating Category | Count |
|---|---|
| Strong Buy | 2 |
| Buy | 0 |
| Hold | 2 |
| Sell | 0 |
| Strong Sell | 0 |
Source: StockAnalysis
Major Analyst Price Targets
| Firm | Rating | Price Target | Upside |
|---|---|---|---|
| UBS | Buy | $604 | +19.60% |
| DBS | Hold | $540 | +6.93% |
| Argus Research | Buy | n/a | n/a |
Source: StockAnalysis
Key Analyst Comments
UBS (Buy, $604): Analyst Brian Meredith has consistently reiterated a Buy rating. He raised the price target from $585 to $604 on August 10, 2026. UBS cites BNSF’s improving earnings and reduced catastrophe losses in insurance.
DBS (Hold, $540): Analyst Edmond Fok maintains a Hold rating with a $500 price target. The firm acknowledges Berkshire’s quality but sees limited near-term upside.
Consensus View: The average 12-month price target of $547.67 implies approximately 8.45% upside from current levels.
Future Growth Catalysts
Greg Abel’s Leadership Transition
Warren Buffett officially retired as CEO in early 2026. Greg Abel now leads Berkshire. Abel’s first shareholder letter was published in February 2026.
Abel brings a operational focus, having previously led Berkshire Hathaway Energy. His compensation structure aligns with long-term shareholder value creation. The transition represents both opportunity and uncertainty.
Massive Cash Deployment
Berkshire holds $365.5 billion in cash and equivalents. This war chest provides significant firepower for:
- Acquisitions: Large-scale transformative deals
- Share buybacks: Q2 2026 buybacks reached a five-year high
- Equity investments: Opportunistic stock purchases
The company’s ability to deploy capital during market dislocations remains a key competitive advantage.
Insurance Float Growth
Berkshire’s insurance float reached approximately $177.5 billion as of Q2 2026, up $1.1 billion from December 2025. This “free” capital allows Berkshire to invest in higher-yielding assets without borrowing costs.
BNSF Railroad Recovery
BNSF revenues grew 14.6% in Q2 2026 with operating earnings up 12.7%. Volume increases of 6.5% and pricing power demonstrate the railroad’s cyclical recovery. Continued industrial production growth should support further gains.
Manufacturing & Services Strength
Manufacturing, Service and Retailing revenues grew 15.2% with pre-tax earnings up 25.8%. Industrial products manufacturing and services businesses drove these improvements. This segment’s diversification provides earnings stability.
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Share Buybacks
Berkshire repurchased significant shares in Q2 2026, with buybacks reaching a five-year high. The company’s buyback program demonstrates management’s confidence in intrinsic value. Buybacks reduce share count and boost EPS.
Risks and Challenges
Valuation Considerations
| Metric | Value |
|---|---|
| Trailing P/E | 12.63x |
| Forward P/E | 22.52x |
| P/B Ratio | 1.44x |
| P/S Ratio | 2.47x |
Source: Yahoo Finance, StockAnalysis
The trailing P/E of 12.63 appears attractive. However, the forward P/E of 22.52 suggests earnings are expected to decline. The P/B ratio of 1.44 is reasonable for a financial holding company.
Earnings Volatility
Berkshire’s GAAP earnings are heavily influenced by unrealized investment gains and losses. Q2 2026 included $12.68 billion in investment gains. These fluctuate significantly quarter to quarter.
As Berkshire itself notes: “The amount of investment gains (losses) in any given quarter is usually meaningless and delivers figures for net earnings per share that can be extremely misleading”.
CEO Transition Uncertainty
Warren Buffett’s departure marks the end of an era. Greg Abel lacks Buffett’s legendary investment reputation. While Abel is a capable operator, his capital allocation decisions remain unproven at Berkshire’s scale.
Insurance Underwriting Pressure
Insurance underwriting earnings declined 13.1% in Q2 2026 to $1.7 billion. Increased catastrophe losses and competitive pricing pressure could further compress margins.
Economic Sensitivity
BNSF railroad and manufacturing segments are cyclical. An economic downturn would impact freight volumes and industrial production. Berkshire’s diversified model provides some protection, but not complete insulation.
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Opportunity Cost of Cash Hoard
Berkshire’s $365.5 billion cash position earns relatively low returns. While providing safety, this large cash balance creates an opportunity cost. Shareholders may question why capital isn’t deployed more aggressively.
Expert Opinions Summary
Bullish Arguments
- Valuation Discount: Trailing P/E of 12.6 vs. market average of ~20x
- Fortress Balance Sheet: $365B cash, minimal debt
- Diversified Earnings: Insurance, railroad, energy, manufacturing, retail
- Insurance Float: $177B of “free” capital for investment
- Buyback Program: Five-year high repurchases in Q2 2026
- New Leadership: Greg Abel’s operational expertise
Bearish Arguments
- CEO Transition: Buffett’s successor unproven in capital allocation
- Earnings Volatility: GAAP earnings driven by investment gains
- Modest Growth: Revenue growth was flat in FY2025
- Economic Sensitivity: Cyclical exposure in railroad and manufacturing
- Cash Drag: $365B earning low returns
- Forward P/E: 22.5x suggests expected earnings decline
Zacks Rank
Berkshire currently carries a Zacks Rank #2 (Buy). This indicates positive earnings estimate revisions and favorable short-term momentum.
Morningstar View
Morningstar data shows BRK.B trading at a premium to some measures. The firm’s fair value estimate and detailed analysis are available through their platform.
Data Collection Sources
| Source | Type | Data Collected |
|---|---|---|
| Yahoo Finance | Market Data | Price, volume, valuation metrics, financials |
| StockAnalysis.com | Financial Data | Price history, analyst forecasts, statistics |
| Nasdaq.com | Earnings Reports | Q2 2026 segment performance |
| MarketBeat | Analyst Consensus | Price targets, ratings distribution |
| TipRanks | Analyst Data | Revenue by segment, forecasts |
| Weiss Ratings | Financial Data | Quarterly income statements |
| Earnings Whispers | EPS Data | Earnings surprises, consensus estimates |
| Marketscreener | Annual Reports | FY2025 results, segment details |
| 163.com | News | FY2025 operating earnings |
All data points are attributed to their original sources. Financial figures are in USD unless otherwise noted.
Who Should Consider This Stock
Suitable Investors
- Value investors seeking a diversified conglomerate at a reasonable valuation
- Defensive investors seeking low volatility (beta of 0.61)
- Long-term holders who trust Berkshire’s capital allocation discipline
- Income-focused investors (though Berkshire pays no dividend, buybacks provide returns)
- Investors seeking insurance and financial sector exposure through a diversified vehicle
Less Suitable Investors
- Growth investors seeking high revenue/earnings growth
- Short-term traders given limited near-term catalysts
- Dividend seekers (Berkshire does not pay dividends)
- Investors uncomfortable with earnings volatility from investment gains
- Those seeking pure-play exposure to specific sectors
Why Investors Should Invest or Not
Reasons to Invest
- Valuation: Trailing P/E of 12.6x, well below market averages
- Balance Sheet: $365B cash, $750B equity, minimal debt
- Diversification: Insurance, railroad, energy, manufacturing, retail
- Insurance Float: $177B of interest-free capital
- Buyback Program: Aggressive repurchases at five-year highs
- New Leadership: Greg Abel’s operational focus
- Low Volatility: Beta of 0.61 provides downside protection
Reasons Not to Invest
- CEO Transition Risk: Buffett’s successor unproven
- Earnings Volatility: GAAP earnings driven by investment gains
- Modest Growth: Revenue essentially flat in FY2025
- No Dividend: No income for yield-seeking investors
- Forward P/E: 22.5x suggests expected earnings decline
- Cash Drag: Large cash position earning low returns
- Cyclical Exposure: Railroad and manufacturing sensitive to economic cycles
Apple vs. Berkshire Hathaway: Comparison Table
| Metric | Apple (AAPL) | Berkshire Hathaway (BRK.B) |
|---|---|---|
| Stock Price | $324.96 | $508.13 |
| Market Cap | ~$4.75T | ~$1.08T |
| Trailing P/E | 37.29x | 12.63x |
| Forward P/E | 33.22x | 22.52x |
| P/B Ratio | ~50x | 1.44x |
| Beta | ~1.20 | 0.61 |
| YTD Return | +19.86% | +1.09% |
| Revenue (TTM) | ~$416B | ~$384B |
| Net Income (TTM) | ~$112B | ~$85.8B |
| Cash Position | ~$65B | ~$365.5B |
| Dividend Yield | 0.34% | 0% |
| Business Model | Technology products & services | Diversified holding company |
| Key Strength | Ecosystem lock-in, AI catalyst | Insurance float, balance sheet |
| Key Risk | Valuation, growth deceleration | CEO transition, earnings volatility |
| Analyst Consensus | Buy (avg PT $324) | Buy (avg PT $547.67) |
| 52-Week Range | $225 – $344 | $464 – $537 |
Sources: StockAnalysis, Yahoo Finance, MarketBeat
Key Takeaways from Comparison
Valuation: Berkshire trades at a significant discount to Apple on P/E (12.6x vs. 37.3x) and P/B (1.44x vs. ~50x). Value investors may prefer Berkshire.
Growth: Apple demonstrates superior growth with 19.86% YTD return vs. Berkshire’s 1.09%. Apple’s revenue grew 6% in FY2025 vs. Berkshire’s flat revenue.
Volatility: Berkshire’s beta of 0.61 offers much lower volatility than Apple’s ~1.20. Defensive investors may prefer Berkshire.
Cash: Berkshire holds $365B in cash vs. Apple’s ~$65B. Berkshire has more “dry powder” for acquisitions.
Dividend: Apple pays a 0.34% dividend; Berkshire pays none. Income investors may prefer Apple.
Catalysts: Apple has AI and foldable iPhone catalysts. Berkshire’s catalysts include capital deployment and economic recovery.
Risk Profile: Apple’s main risk is valuation; Berkshire’s is CEO transition and earnings volatility.
DailyStocks7 Point of View
Based on comprehensive analysis of Berkshire Hathaway’s fundamentals, valuation, and market positioning:
Rating: BUY
Rationale:
Berkshire Hathaway represents one of the most attractively valued large-cap stocks in the current market. The trailing P/E of 12.63 stands well below the S&P 500 average of approximately 20x, yet Berkshire’s business quality and diversification rival any blue-chip company.
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The $365.5 billion cash position provides immense optionality. Greg Abel can pursue transformative acquisitions, aggressive buybacks, or opportunistic equity investments. The Q2 2026 buyback surge to five-year highs signals management’s conviction in intrinsic value.
Operating earnings growth of 16.3% in Q2 2026 demonstrates the underlying business strength. BNSF’s 14.6% revenue growth and Manufacturing’s 15.2% growth show cyclical recovery underway. The insurance float of $177.5 billion provides a durable competitive advantage.
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Risks exist. Greg Abel’s capital allocation skills remain unproven at Berkshire’s scale. Earnings volatility from investment gains complicates analysis. The lack of dividend may deter income investors.
However, at current prices, the market appears to discount these risks excessively. The 8.45% upside implied by the $547.67 consensus price target seems conservative. UBS’s $604 target implies nearly 20% upside.
Conclusion:
Berkshire Hathaway offers value investors a diversified, low-volatility vehicle with a fortress balance sheet and significant optionality. The valuation discount to the broader market is unjustified given the company’s quality. Investors should consider establishing or adding to positions at current levels.
Disclaimer:
This report is for research and informational purposes only. It does not constitute financial advice. Investors should conduct their own due diligence and consult with qualified financial advisors before making investment decisions. Past performance does not guarantee future results.
All data is sourced from publicly available information and attributed accordingly.
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