BERKSHIRE HATHAWAY

Analysis of Berkshire Hathaway share price

BUY   SELL
72% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

In order to implement an accurate and effective investment strategy on the Berkshire Hathaway share price, you can rely on the information we will provide in this article, which will enable you to carry out a good analysis of its share price. In this article, we will learn more about the company's precise activities, its main sources of income, its direct competitors on the international market and the recent partnerships it has set up. We will also give you a few tips for a successful fundamental analysis of this stock.  

Latest news

BERKSHIRE HATHAWAY: repurchase of its shares for approximately $25 billion last year

02/03/2021 - 08h28

Like several companies in recent days, Berkshire Hathaway presented the figures for its 2020 financial year. The figures for its share buyback are impressive.

Elements that can influence the price of this asset:

Analysis N°1

The strategy implemented by the Group to promote its international expansion through acquisitions or partnerships, for example.

Analysis N°2

Diversification of the Group's portfolios is also a growth strategy to be closely monitored.

Analysis N°3

Of course, we will also keep an eye on the evolution of government regulations and on the various financial crises or periods of recession that may plummet its activities.

Analysis N°4

Finally, and given that the insurance segment represents a large part of Berkshire Hathaway's business, account will be taken of the likely impact of certain natural catastrophes on its profitability.

72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

General presentation of Berkshire Hathaway

Now let's take a few moments to find out a little bit more about who Berkshire Hathaway is and how it generates its revenue with its activities and sources of profit by segment.

The Berkshire Hathaway Group is an American holding company which is active in various business segments. It is thus possible to group the activities of this group into 6 main categories according to the share of turnover they generate :

  • The insurance and reinsurance segment, which generates 27% of the Group's revenues.
  • The industrial products and building materials manufacturing segment, which generates 24.6% of revenues.
  • The wholesale distribution segment of grocery products and food and non-food products with the subsidiary McLane Company, which generates 19.8% of the profit.
  • The rail freight segment which generates 11.5% of revenues with Burlington Northern Santa Fe.
  • The electricity and gas generation and distribution segment with 7.9% of revenues by Berkshire Hathaway Energy.
  • Finally, the remaining 9.2% of income comes from miscellaneous ancillary activities.

At present, the Berkshire Hathaway Group employs 391,500 people.

Analysis of Berkshire Hathaway share price
72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

The major competitors of Berkshire Hathaway

We would now like to give you a quick overview of the Berkshire Hathaway Group's main competitors, mainly from the insurance sector. Here is a presentation of the main competitors:

AIG

American International Group Inc. is a global American property and casualty insurance network and one of the world's leading insurance and financial services companies. It has more than 56,000 employees and 90 million customers in more than 100 countries.

Aon

This British multinational company is also a major player in risk management, insurance and reinsurance brokerage, human resources consulting, and specialist insurance management and underwriting.

Allianz 

The German insurance group Allianz is the leader in this sector in Europe and ranks fourth worldwide in terms of asset management. In particular, it offers property and casualty and life insurance products and is present in Germany, Switzerland, France and Italy.

Alltate

This other American group is one of the country's best-known insurance companies, thanks in particular to its strategic takeovers. This company was created through a spin-off from Sears.

MetLife

Also known as the Metropolitan Life Insurance Company, MetLife is a US insurance company that offers creditor insurance and benefit guarantees for individuals, professionals and intermediaries. It is one of the world's leading insurance players with more than 90 million customers in some 60 countries.


The major partners of Berkshire Hathaway

If it is important to know the competition of the Berkshire Hathaway group, it is just as important to know its strategic allies. We now propose you to discover two recent examples of partnerships signed by this company.

BioTalent Canada

Through its Business Wire subsidiary, Berkshire Hathaway recently partnered with this Canadian national non-profit organization specializing in the country's bio-economy in human resources. The objective of this alliance is to enhance BioTalent's Affiliate Plus program through Business Fire, which specializes in press release distribution and to broaden its audiences in the bio-economy sector in Canada and internationally. BioTalent partners will also be able to take advantage of special packages on BioTalent's dissemination services with Business Fire's segment news posted exclusively on BioTalent Canada's website.

AIG

The group has also signed a partnership with its competitor AIG which will transfer part of its long-term risks to Berkshire. This $10.2 billion transaction took place in June 2017. It is National Indemnity, the subsidiary of Berkshire which assumes 80% of the net losses related to these risks with a ceiling of 20 billion dollars.

72% of retail investor accounts lose money when trading CFDs with this provider. This is an advert for trading CFDs on Plus500

Frequently Asked Questions

What is the total market capitalization of Berkshire Hathaway?

At the beginning of 2020, the Berkshire Hathaway group had a total market capitalization of more than US$553 billion. Thanks to this very large capitalization, the company has managed to rank as the eighth largest company in the world by market capitalization.

How has the Berkshire Hathaway share evolved since its first listing?

It is interesting to look at the historical development of the Berkshire Hathaway share price in order to better understand the performance of this stock over the long term. Thus, we know that since January 1980, when it was floated on the stock exchange, the growth of this share has been impressive. The price of this stock has risen from $335 in January 1980 to more than $339,155 in January 2020, an increase of 101,140%.

What is Berkshire Hathaway's dividend payment policy?

The Berkshire Hathaway group has had a policy of not paying dividends since the beginning of its activities. Indeed, Warren Buffet believes that the company's money has the potential to be used in a better way for its growth rather than choosing to compensate its shareholders.

72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500