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Berkshire Hathaway (BRK.B) Could Be 100% Below Fair Value After Buffett Donation Plan

Simply Wall St · 1d ago

Buffett’s donation plan and CNBC return put Berkshire Hathaway (BRK.B) in focus

Warren Buffett’s plan to give away all remaining Berkshire Hathaway (BRK.B) shares by 2034, combined with his recent CNBC appearance, has put the stock back into the spotlight for many investors.

See our latest analysis for Berkshire Hathaway.

Despite the headline focus on Buffett’s donation plan and CNBC comments, Berkshire Hathaway’s share price has been relatively steady around $490.91, with a 3.44% 90 day share price return and a 41.98% three year total shareholder return, which may indicate longer term momentum.

If Buffett’s moves have you thinking about where else capital is being put to work, this could be a good moment to scan for other opportunities through our 18 top founder-led companies

So is Berkshire Hathaway’s relatively quiet share move, alongside Buffett’s donation plan and CNBC return, telling you more about the underlying cash rich business or about cooler sentiment catching up after strong multi year returns?

Most Popular Narrative: 99.9% Undervalued

The latest narrative fair value of $669,764.35 per share for Berkshire Hathaway, versus a last close of $490.91, points to a large perceived gap that this author thinks the market is missing.

I am concentrated in 8 companies: Tesla, Meta, Nvidia, Amazon, PLTR, Google, Apple and BRKB. Every time the market drops, my said companies drop and BRKB go up. I have noticed it acts like a safe treasury, but of course, I still know this is a bet.

Read the complete narrative.

This narrative is based on a very high fair value, supported by assumptions around future cash generation, profit margins and the multiple Berkshire Hathaway could command if those assumptions materialize.

Result: Fair Value of $669,764.35 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on optimistic assumptions, and setbacks in Berkshire Hathaway’s insurance results or weaker returns on its large cash and investment pool could quickly challenge that 99.9% undervalued story.

Find out about the key risks to this Berkshire Hathaway narrative.

Next Steps

If this Berkshire Hathaway narrative leaves you torn between caution and optimism, move quickly to review the data and carefully weigh the 2 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Berkshire Hathaway?

If Berkshire Hathaway has sharpened your focus, do not stop here. Use the Simply Wall Street Screener to uncover fresh opportunities that fit your style and risk comfort.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.