No. of Recommendations: 6
“ The case for Berkshire starts with what CEO Buffett calls a “Fort Knox” balance sheet, with over $150 billion in cash, or about 20% of the company’s market value. Earnings are growing too, with Berkshire’s after-tax operating profits up nearly 20% so far in 2023. They could hit $40 billion this year, powered by higher interest income on Berkshire’s cash and strong insurance underwriting results, helped by a turnaround at Geico. Berkshire’s equity portfolio, led by Apple, is having a great year.
The stock looks reasonably priced, valued at 1.4 times estimated year-end 2023 book value and about 18 times next year’s projected earnings. ”
18x vs S&P
