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Is Berkshire Hathaway (BRK-B) A Good Investment?
If you want to invest like Warren Buffett, there’s no better chance than buying shares in the business where he has amassed much of his fortune.
In fact, Berkshire Hathaway is not often regarded as a stock pick by Warren Buffett. But this is a composite of every stock he owns. So, investors may buy into Buffett’s portfolio (through the cheaper B-class shares) and benefit from his investment prowess.
It’s worth noting that Berkshire has been actively repurchasing its own stock. In the first quarter alone, Buffett approved the buyback of $4.4 billion in Class A and Class B shares. That’s noteworthy since repurchasing Berkshire shares was difficult for a long time.
Previously, the stock could be repurchased only if it dropped to a price below 120% of its book value. If Buffett and Munger think the stock is selling at a discount to its true worth, the board will approve a buyback beginning in 2017. Berkshire has over $25 billion in cash on hand, giving them plenty of room to buy stock.
With Charlie Munger and Warren Buffett at the helm, Berkshire Hathaway has grown into a powerful multinational corporation. Berkshire Hathaway’s unusual mix of investments — in railroads, insurance firms, aircraft, sweets, and desserts — makes the company stand out. The company’s exclusive banking…
