BERKSHIRE HATHAWAY STOCK OVERVIEW

SNAPSHOT

Ticker	BRK.B	Market Cap	$1T
Sector	Insurance	P/E	15.92
52 Week High-Low	$455.19 - $542.07	3 Year Beta	0.69
CEO	Gregory Edward Abel	Target Price	$527.06

BUSINESS MODEL

Products

Berkshire Hathaway provides a highly diversified set of products and services through a large portfolio of wholly owned subsidiaries operating across insurance, transportation, energy, manufacturing, retail, and services. Its insurance operations include property and casualty insurance, reinsurance, specialty insurance, and personal auto insurance through businesses such as GEICO, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Outside insurance, Berkshire owns major operating platforms including Burlington Northern Santa Fe (freight rail transportation), Berkshire Hathaway Energy (electric utilities, natural gas pipelines, and renewable energy), and a broad collection of manufacturing companies producing aerospace components, specialty chemicals, metal cutting tools, industrial equipment, building materials, apparel, batteries, and consumer products. These businesses collectively provide goods and services across many sectors of the global economy.

Customer Base

Berkshire Hathaway serves an extremely broad and diversified customer base that spans individuals, businesses, governments, and institutional clients. Its insurance subsidiaries provide coverage to individual policyholders, corporations, and other insurers seeking reinsurance protection. Transportation services through BNSF support manufacturers, agricultural producers, energy companies, and consumer goods distributors that rely on freight rail networks to move commodities and finished products across North America. Energy operations serve millions of residential, commercial, and industrial customers through regulated electric utilities, natural gas pipelines, and renewable energy infrastructure. Berkshire’s manufacturing and service businesses sell products to aerospace manufacturers, industrial firms, construction companies, retailers, and end consumers worldwide.

Pricing Method

Berkshire Hathaway generates revenue through multiple pricing mechanisms depending on the industry of each operating subsidiary. Insurance businesses earn revenue primarily through insurance premiums and reinsurance contracts, which are priced based on actuarial assessments of risk, expected loss costs, and underwriting margins. Transportation revenues at BNSF are generated through freight contracts and shipping rates negotiated with customers based on commodity type, distance, and network capacity. Energy businesses operate largely under regulated pricing frameworks where utility regulators establish rates designed to allow recovery of operating costs and a reasonable return on invested capital. Manufacturing, industrial, and consumer subsidiaries price their products based on competitive market conditions, contractual agreements with customers, and long-term supply arrangements.

Supply Chain

Berkshire Hathaway’s supply chain structure varies widely across its operating businesses but generally involves sourcing raw materials, components, and energy inputs required for manufacturing, transportation, and energy production. Manufacturing subsidiaries rely on global suppliers for metals, chemicals, components, and industrial materials used in aerospace parts, chemicals, cutting tools, building materials, and consumer goods production. BNSF’s freight rail network serves as both an operational asset and part of the broader supply chain ecosystem by transporting agricultural products, industrial materials, energy resources, and consumer goods across North America. Energy operations rely on fuel inputs such as natural gas and coal, as well as renewable generation assets including wind and solar facilities, while operating extensive transmission and distribution infrastructure to deliver electricity and gas to customers.

Sales Channels

Berkshire Hathaway distributes its products and services through a decentralized collection of sales channels aligned with each subsidiary’s industry. Insurance products are sold directly to consumers through digital platforms and call centers (such as GEICO), as well as through brokers, agents, and reinsurance intermediaries. Energy services are delivered directly to residential, commercial, and industrial customers within regulated utility service territories. Transportation services are marketed through direct relationships with large industrial shippers and logistics partners. Manufacturing and industrial subsidiaries distribute products through direct enterprise sales teams, distributors, wholesalers, and long-term supply agreements with major corporate customers across aerospace, automotive, construction, and industrial sectors. This decentralized approach allows each subsidiary to maintain specialized sales strategies tailored to its market while benefiting from Berkshire’s long-term capital and ownership structure.

INDUSTRY ANALYSIS: PORTER'S 5 FORCES

Threat of New Entrants — Low

Barriers to entry are high across most of Berkshire Hathaway’s major industries, particularly insurance, freight rail transportation, and regulated utilities. Insurance requires substantial capital reserves, underwriting expertise, and regulatory approval across multiple jurisdictions, making it difficult for new insurers to compete at scale. Freight rail operations such as BNSF require massive infrastructure investments, long-standing land rights, and network scale that are nearly impossible to replicate. Similarly, regulated utility businesses operate under long-term regulatory frameworks that limit competition within established service territories. Berkshire’s access to large pools of capital and its reputation for long-term ownership further strengthen these structural barriers.

Bargaining Power of Buyers — Moderate

Customer bargaining power varies significantly across Berkshire’s diverse business segments. Individual insurance customers and small businesses generally have limited negotiating power and primarily compete based on price and service quality among insurers. However, large corporate clients purchasing reinsurance or transportation services may have greater leverage due to contract size and competitive alternatives. In manufacturing and industrial businesses, major corporate buyers may negotiate pricing and long-term supply agreements. Despite this, Berkshire’s scale, strong brand reputation, and differentiated services reduce overall buyer power across many of its operating businesses.

Bargaining Power of Suppliers — Moderate

Supplier power differs across Berkshire’s subsidiaries depending on the industry. Manufacturing operations depend on raw materials such as metals, chemicals, and industrial components, where suppliers may exert influence if supply becomes constrained. Energy businesses rely on fuel suppliers, equipment manufacturers, and infrastructure providers to support power generation and transmission operations. However, Berkshire’s scale and diversified purchasing requirements provide negotiating leverage across many supplier relationships. Long-term supply agreements and vertical integration in some segments also help mitigate supplier bargaining power.

Threat of Substitutes - Moderate

Substitution risk exists across several of Berkshire’s operating segments. In insurance, alternative providers and government programs can compete with private insurers for coverage services. In transportation, trucking and intermodal shipping offer alternatives to rail transportation for certain types of freight. Energy utilities may face substitution pressures from distributed energy generation, such as rooftop solar and battery storage systems. In manufacturing and consumer products, competing brands and alternative materials may replace certain products. Despite these substitution risks, Berkshire’s diversified portfolio reduces reliance on any single market segment.

 Competitive Rivalry — Moderate to High

Competition across Berkshire Hathaway’s operating industries is significant, though it varies by sector. Insurance markets include many large national and international competitors that compete on underwriting, pricing, and customer service. Freight rail transportation has fewer direct competitors but still faces competitive pressure from trucking and logistics providers. In energy markets, utilities operate under regulatory oversight but compete for investment capital and operational efficiency. Manufacturing subsidiaries compete across numerous industrial and consumer markets with both global corporations and specialized manufacturers. Berkshire’s decentralized structure and long-term capital allocation strategy allow its subsidiaries to compete effectively within their respective industries while maintaining operational independence.

VALUATION: DISCOUNTED CASH FLOW

WACC

INVESTMENT RISKS

Systematic Risk

Market Risk: Berkshire’s market risk is moderate. The stock’s Beta of 0.67 indicates below-market volatility, which is consistent with the company’s diversified business mix and large exposure to defensive cash-generating operations such as insurance, utilities, and railroads. Valuation is not especially stretched, with a P/E of 15.92, EV/EBITDA of 11.15, and EV/Sales of 2.16, all of which suggest the market is assigning a reasonable rather than aggressive multiple to Berkshire’s earnings base. However, Berkshire remains exposed to equity market movements through its large investment portfolio, and the decline in net margin from 23.96% in 2024 to 18.03% in 2025 shows that earnings can still be meaningfully affected by market-sensitive investment results and cyclical operating performance.

Geopolitical Risk: Berkshire’s geopolitical risk is moderate because many of its operating businesses depend on global supply chains, commodity flows, energy markets, and international industrial demand. Its manufacturing subsidiaries rely on metals, chemicals, and globally sourced industrial inputs, while BNSF and Berkshire Hathaway Energy are exposed to changes in trade flows, fuel costs, and cross-border economic activity. This risk is somewhat cushioned by Berkshire’s broad diversification, but margin sensitivity remains relevant, especially in businesses with heavy input exposure. The company’s operating margin of 15.78% is strong, yet its gross margin of 23.63% does not leave it immune from sustained inflation in raw materials, transportation, or energy-related costs arising from geopolitical disruptions.

Unsystematic Risk

Business Risk: Berkshire’s business risk is moderate and is mainly driven by the complexity and breadth of its operating structure. The company owns businesses across insurance, freight rail, utilities, manufacturing, retail, and services, which creates diversification but also increases execution risk across very different industries. Profitability remains solid, with operating margin at 15.78% and return on invested capital at 8.33%, but both returns and cash generation have weakened from stronger prior levels. Free cash flow margin was 6.74% in 2025, still positive but below historical highs, and return on equity declined to 9.80% from 14.70% in 2024. This suggests that while Berkshire remains highly profitable overall, its underlying business mix can still be affected by cyclical industrial demand, insurance pricing conditions, catastrophe losses, and capital-intensive infrastructure spending.

Financial Risk: Berkshire’s financial risk is low. The balance sheet is conservatively structured, with total debt to capital of 15.75% and total debt to equity of 18.69%, both of which are low for a conglomerate of this size. Net debt metrics are especially strong, with net debt to EBITDA at negative 3.39 and net debt to total capital at negative 28.09, indicating that cash and short-term investments materially exceed debt. Interest coverage is also very healthy, with EBIT covering interest expense 11.56 times and EBITDA covering interest 14.22 times. The main financial risk is therefore not leverage, but capital allocation efficiency. Berkshire’s return on equity and return on invested capital have declined from prior peaks, so future value creation depends more on disciplined reinvestment than on balance sheet flexibility.

Liquidity Risk: Berkshire’s liquidity risk is very low. The company holds an exceptionally strong liquid position, reflected in a current ratio of 6.75, quick ratio of 6.41, and cash ratio of 5.29. Cash and short-term investments account for 78.38% of current assets, showing that a large portion of liquidity is immediately available rather than tied up in working capital. Coverage metrics further support this view, with CFO to current liabilities at 65.17% and strong fixed-charge and interest coverage. Berkshire’s liquidity profile is one of its clearest strengths, giving it substantial capacity to absorb shocks, fund acquisitions, support subsidiaries, and act opportunistically during market dislocations.

Regulatory Risk: Berkshire’s regulatory risk is moderate because many of its major subsidiaries operate in heavily regulated sectors, especially insurance, railroads, and utilities. Insurance operations face solvency, reserve, and underwriting regulation, while BNSF is subject to transportation, safety, and environmental oversight, and Berkshire Hathaway Energy operates under utility rate regulation and environmental compliance requirements. These businesses are stable in part because of regulation, but regulation also limits pricing flexibility and can increase compliance costs. Berkshire’s diversified model reduces the impact of any one regulatory regime, but because several of its largest businesses operate in sectors where government oversight is extensive, regulatory changes can still affect profitability, returns on capital, and long-term cash flow generation.

MANAGEMENT

Gregory Edward Abel

President, Chief Executive Officer & Director

Gregory has served as President, Chief Executive Officer, and Director of Berkshire Hathaway since 2026 and has been with the company since 2000. Prior to becoming CEO, he served as Chairman of Berkshire Hathaway Energy beginning in 2018 and previously held senior leadership roles at MidAmerican Energy Holdings, including Chairman, President, and Chief Executive Officer from 2011 to 2014. Earlier in his career, he served as Chief Executive Officer of PacifiCorp from 2006 to 2018. He also serves as Vice Chairman at CE Casecnan Water & Energy Co. and Associated Electric & Gas Insurance Services Ltd., and is involved with several organizations including the American Football Coaches Foundation and the Horatio Alger Association. He holds an undergraduate degree from the University of Alberta.

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Marc D. Hamburg

Chief Financial Officer, Secretary & Senior Vice President

Marc has served as Chief Financial Officer, Secretary, and Senior Vice President of Berkshire Hathaway since 1987. Over his long tenure with the company, he has overseen Berkshire’s financial reporting, treasury operations, and corporate accounting functions. In addition to his executive responsibilities, he has served as a director of several Berkshire-affiliated companies, including Precision Castparts Corp. and Burlington Northern Santa Fe, and he has also served on the board of Alleghany Corporation since 2022. Earlier in his career he worked at MidAmerican Energy Holdings and served as Treasurer at Star Furniture Co. and Wesco Holdings Midwest.

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Michael J. O’Sullivan

General Counsel & Senior Vice President

Michael has served as General Counsel and Senior Vice President of Berkshire Hathaway since 2026. Prior to joining Berkshire, he worked at Munger, Tolles & Olson LLP where he served as a Principal. Earlier in his career, he served as Secretary and General Counsel at Snap Inc. from 2017 to 2025. He holds an undergraduate degree from the University of Pennsylvania and a law degree from the University of Southern California Gould School of Law.

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Daniel J. Jakisch

Chief Accounting Officer & Vice President

Daniel currently serves as Chief Accounting Officer and Vice President of Berkshire Hathaway. In this role he oversees accounting operations, financial reporting, and internal financial controls across the company’s diverse portfolio of subsidiaries. His responsibilities include ensuring accurate financial reporting and supporting the company’s corporate finance operations.

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Ajit Jain

Director & Vice Chairman – Insurance Operations

Ajit has served as Vice Chairman of Insurance Operations at Berkshire Hathaway since 2018 and has worked with the company since 1996. Prior to his current role, he served as Executive Vice President of National Indemnity Company, where he played a key role in building Berkshire’s global reinsurance business. He also serves as a trustee of The Rockefeller University and has been instrumental in developing Berkshire’s insurance and reinsurance operations.

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Jennifer Tselentis

Controller

Jennifer has served as Controller of Berkshire Hathaway since 2006. In this role she is responsible for overseeing the company’s accounting functions, financial reporting processes, and internal accounting controls across Berkshire’s numerous subsidiaries.

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Rebecca K. Amick

Director – Internal Auditing

Rebecca serves as Director of Internal Auditing at Berkshire Hathaway. In this position she oversees the company’s internal audit processes and risk management reviews, ensuring that financial and operational controls are maintained across Berkshire’s decentralized business operations.

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Find Berkshire Hathaway's 10 Year Financial Statements below.

Berkshire Hathaway Financial Statements.xlsx

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