Berkshire Hathaway: A Company Poised for Continued Success

Why Berkshire Hathaway Is a Top Pick for Long-Term Investors

For decades, Berkshire Hathaway has been a top pick for long-term investors, and for good reason. The company has a stellar track record of outperforming the market, and its intrinsic value is significantly higher than its current stock price.

A History of Outperformance

Since Warren Buffett took over as CEO in 1965, Berkshire Hathaway has outperformed the S&P 500 by a wide margin. The company's average annual return over that period has been 20%, compared to the S&P 500's average return of 10%. This outperformance is due in part to Buffett's value investing approach, which involves buying undervalued companies and holding them for the long term.

Intrinsic Value Higher Than Current Stock Price

Berkshire Hathaway's intrinsic value is significantly higher than its current stock price. This is because the company has a number of hidden assets, such as its insurance float and its ownership of a diverse portfolio of businesses. According to Buffett, Berkshire Hathaway's intrinsic value is worth about $300,000 per share, compared to its current stock price of around $240,000 per share.

Conclusion

Berkshire Hathaway is a great company at a good price. The company has a stellar track record of outperforming the market, and its intrinsic value is significantly higher than its current stock price. This makes Berkshire Hathaway a top pick for long-term investors.