Summary
- The stock remains discounted from pre-Coronavirus prices.
- The company has over $137 billion in cash.
- Berkshire's robust portfolio is unparalleled.
- Valuation hasn't been this low since 2017.
- Buffett has built a solid team within the company.
Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) and Warren Buffett are synonymous with each other, with the latter heralded as the GOAT in terms of investing. Starting out as a textiles company, Berkshire Hathaway has since developed into a conglomerate holding company valued at over $461 billion thanks to the prowess and guidance of Buffett.
Earlier this year, Coronavirus took its toll on the stock market and Berkshire Hathaway was no exception. Within a one month span, the company's stock price plummeted over 29% from $229.33 to $162.13.
Whilst other companies have restored their losses, with many enjoying even higher prices than pre-Coronavirus, Berkshire Hathaway's stock price is far from fully recovered.
Since the end of March, its stock price fluctuated, flirting with the $200 mark but dropping upon reaching it. At the time of writing, the stock price is sitting around the $185 mark.
$185 is certainly a significant improvement from its February lows but is still discounted from its pre-Coronavirus days.
This therefore begs the question: do investors still have a buying opportunity?
Berkshire Bull
The immediate attraction to Berkshire Hathaway is undoubtedly its connection to Buffett. Any investor worth their salt is heavily inspired by the Oracle of Omaha and his profound success in the field is unmatched.
Logic would thereby dictate that Buffett, who comprehensively understands the components of a successful business, will implement his knowledge into running his own investment-focused company. Such logic holds water and Berkshire's consistent growth further cements this.
Taking a deeper look into its portfolio, Berkshire's growth is self-evident. Berkshire owns over 60 subsidiary companies, with many being solid household names. Duracell, See's Candies, Dairy Queen and GEICO are just a few of the household names that Berkshire owns outright.
