" Berkshire Hathaway Is Still Not Undervalued, But Relative Valuation Has Improved
Jan. 17, 2026 1:37 AM ET|Berkshire Hathaway Inc. (BRK.A) Stock, BRK.B Stock

Fishtown Capital "

" Summary
Berkshire Hathaway remains fully valued, with a Price/Book of 1.47 and intrinsic value near its current market cap.
FY26 earnings are likely to decline due to lower interest rates and normalization of insurance underwriting profits, creating headwinds for share appreciation.
Management has not resumed significant share repurchases, signaling shares are not discounted; a dividend or strategic use of the cash pile is overdue.
While new leadership under Greg Abel offers optionality, Berkshire's outsized cash position and limited reinvestment opportunities constrain future compounding."

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Quick Insights
How do current valuation metrics position BRK relative to its historical buyback levels?
BRK trades at 1.47x book, above the 1.3–1.4x range where significant repurchases occurred, indicating shares are not yet attractively valued for buybacks.
What are the key earnings headwinds for BRK in FY26?
Lower short-term rates could reduce investment income by $3 billion, and insurance underwriting profits are expected to revert, creating a combined $6.5 billion headwind versus FY25.
How does Berkshire's current cash strategy impact its investment case?
With nearly 30% of market cap in cash and limited attractive acquisition targets, the lack of a clear capital deployment plan limits upside and supports calls for a dividend."