Don’t Fret About Warren Buffett. Berkshire Stock Is Still a Buy - Baron's

Don’t Fret About Warren Buffett. Berkshire Stock Is Still a Buy.

By Steven M. Sears

https://www.barrons.com/articles/warren-buffett-berkshire-stock-buy-53fe63f5

At a time in the stock market when it is hard to buy a great company at a good price, Berkshire Hathaway merits consideration.

Berkshire is trading at about 11 times earnings, even as many other admired companies are trading at higher multiples.

The valuation disconnect indicates that Berkshire is getting little credit for significant stakes in some of the world’s most respected, profitable companies, including Apple, American Express , Coca-Cola, Occidental Petroleum, Moody’s, and Chubb. Berkshire also has substantial operations in insurance and reinsurance, utilities and energy, freight rail transportation, and retailing.

Berkshire’s stock price doesn’t fully reflect the company’s strength because investors are overweighting a simple fact: that Berkshire’s legendary CEO, Warren Buffett, is mortal like all of us.

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