Equity Brief · Financial Services2026-08-15
BRK-B·Financial Services

Berkshire Hathaway Inc. New

I · AI Analysis

The brief

Berkshire Hathaway operates dozens of wholly-owned businesses across insurance (GEICO, reinsurance), freight rail (BNSF Railway), utilities and energy (generation, transmission, pipelines), and manufacturing (everything from Dairy Queen restaurants to precision aerospace components) [Berkshire Hathaway website]. The company also manages a massive public stock portfolio, investing insurance premiums and operating cash in publicly traded companies like Apple and Alphabet. Think of it as both a holding company that owns and operates real businesses, and an investment firm that buys stakes in other companies.

Berkshire Hathaway is a massive conglomerate operating insurance, railroads, utilities, and manufacturing businesses, while also managing a $358 billion public stock portfolio [Wall Street Journal]. Under new CEO Greg Abel, the company is actively reshaping its investments — recently adding $10 billion to its Alphabet stake, making it Berkshire's third-largest holding at $37.9 billion, while trimming Bank of America and exiting Constellation Energy [Yahoo Finance Video]. With $1.1 trillion in market capitalization and trailing-twelve-month revenue of $384.7 billion through 30 June 2026, Berkshire remains one of the world's largest and most diversified financial services companies [Yahoo Finance].

Berkshire is extraordinarily healthy, generating $384.7 billion in trailing revenue and sitting on a net cash position of $235.3 billion (negative net debt) [Yahoo Finance].

The brief AI analysisConfidence 8/10

Sentinellis health

Financially healthy

8.9/10

7+ strong · 4–7 moderate · under 4 weak

Profitability

16% of score6.7/10
Net margin+22.3%Gross margin+30.3%· need > 35%

Returns on capital

16% of score10.0/10
ROIC+14.9%Return on equity+12.1%

Growth & momentum

21% of score10.0/10
Revenue growth+10.0%Operating margin trend+20.6pp YoY

Balance sheet

32% of score10.0/10
Current ratio2.9xNet debt / EBITDA-1.8xInterest coverage17.3xDebt / equity0.17

Cash generation

16% of score6.7/10
Free cash flow$21.2BCash vs reported profit$42.9B vs $85.8B· need OCF > net income

Value creation

no data
ROIC vs cost of capital· no data

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

$1.1T

Revenue (TTM)

$384.7B

II · Recent news

What moved

5 stories · ranked by relevance

  • company2026-08-14

    Berkshire Adds to Alphabet Stake, Buys Home Builders and Exits Constellation

    Wall Street Journal

  • company2026-08-15

    Berkshire Hathaway (BRK.B) Stock Looks Undervalued On Fair Value And Earnings

    Simply Wall St.

  • company2026-08-15

    Greg Abel Just Plowed $4.2 Billion Into Warren Buffett's All-Time Favorite Stock

    Motley Fool

  • company2026-08-15

    Warren Buffett's Successor, Greg Abel, Pared Down Bank of America, and Piled Into a Virtual Monopoly That's Now Berkshire's 3rd-Largest Holding

    Motley Fool

  • company2026-08-14

    Berkshire ups Alphabet stake under Greg Abel, making it a top-3 holding

    Yahoo Finance Video

Premium · Free with any account

The forward P/E of 22.9x is HIGHER than the trailing P/E of 12.7x, and forward EPS of $21.97 is FAR BELOW trailing EPS of $39.77 — the market is pricing in a sharp earnings decline of roughly 45% over the next twelve months [Yahoo Finance]. This is the opposite of growth expectations and contradicts any 'undervalued' narrative.

1 of 4 risks in this report

Risks

4

Opportunities

4

Red flags

2

Leadership

10

9 more findings in the full report — free with any account.

Unlock the full Berkshire Hathaway Inc. New analysis

Create a free account to access the complete AI-generated report with inline citations.

  • 4 risks, 4 opportunities and 2 red flags — each with its source
  • 100+ financial metrics with charts and benchmarks
  • Full news summaries with source links
  • Executive team and compensation details
  • PDF export for offline use
Unlock all 10 findings3 free reports · No credit card

III · Related

You might also read

Same sector · Financial Services or comparable health

Want this for your watchlist?

Read three companies free. No card.

Get 3 free reports

Produced 15 Aug 2026, 14:16 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated