Subject: Barron's on Berkshire
Berkshire Hathaway stock is down 7% this year, underperforming the S&P 500’s 4% return and creating a 40 percentage point gap over the past year.
The conglomerate holds $373 billion in cash, has $50 billion in annual earnings power, and resumed a share repurchase program.
CEO Greg Abel now oversees most of the $300 billion equity portfolio, facing expectations to improve flat operating revenues and deploy cash.
UBS analyst Brian Meredith has a Buy rating and a price target of $871,000 on the A shares, nearly 25% above current levels.
Berkshire Hathaway's stock has gone from expensive to cheap over the past year. At its current price, not a lot has to go right for this trillion-dollar conglomerate to generate market-beating returns—even without Warren Buffett at the helm. Amen :-)
https://www.barrons.com/articl...