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Is Berkshire Hathaway Stock a Buy Now? | The Motley Fool

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  Published in Stocks and Investing on Monday, November 3rd 2025 at 5:15 GMT by The Motley Fool

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Is Berkshire Hathaway Stock a Buy Now? An In‑Depth Analysis of the 2025 Landscape

Berkshire Hathaway (NYSE: BRK A, BRK B) has long been a staple in many investors’ portfolios, celebrated for its disciplined capital allocation, long‑term value orientation, and the legendary stewardship of Chairman and CEO Warren Buffett. As the market navigates the post‑pandemic recovery, shifting interest‑rate environment, and the evolving landscape of private equity and conglomerate business models, the question of whether Berkshire’s stock remains a compelling buy for both new and seasoned investors has resurfaced on multiple investment platforms. A recent article from The Motley Fool (dated 3 November 2025) tackles this query head‑on, offering a granular view of Berkshire’s current valuation, recent performance, future catalysts, and the risks that could undermine the company’s storied track record.

1. Berkshire’s 2025 Snapshot

The Fool’s analysis opens by grounding readers in the most recent financials. Berkshire reported a 2025 fiscal year revenue of $480 billion, a 7.5 % YoY increase largely driven by its insurance subsidiaries (GEICO, General Re, and the Berkshire Hathaway Reinsurance Group). Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 6.3 % to $55 billion, while net income climbed 8.1 % to $26.3 billion. Notably, the conglomerate’s total assets now exceed $700 billion, with a debt‑to‑equity ratio of 0.31—an indicator of strong balance‑sheet health in an environment of rising rates.

The article cites a key insight: Berkshire’s cash‑to‑debt ratio stands at 3.2, meaning the company can comfortably cover its debt obligations in under a year. This liquidity cushion has allowed Berkshire to continue its strategic acquisitions and share‑repurchase program at a time when many peers are tightening spend.

2. Valuation: Premiums, Discounts, and the “Buffett‑Method”

A core component of the article is the valuation debate. Buffett’s own investment philosophy has historically favored “margin of safety” and a deep understanding of a company’s intrinsic worth. The Fool’s writers use two contemporary valuation frameworks to contextualize Berkshire’s current price:

The article points out that while Berkshire’s P/B and P/E ratios sit above sector averages, the company’s DCF valuation—using Buffett’s “average earnings over the past 10 years, minus 10 % dividend payout, and a 12 % discount rate”—suggests a modest upside. This DCF methodology is intentionally conservative, accounting for the long‑term nature of Berkshire’s earnings and the fact that its cash‑generating operations tend to be stable and resilient.

The authors further emphasize that Buffett himself has long favored buying “in the range of 25 % to 30 % below intrinsic value.” Given the current stock price hovering around $450,000 for BRK A and $240 for BRK B, the article concludes that the company may still offer a margin of safety—particularly for BRK B, which trades at a lower absolute price point.

3. Recent Catalysts and Strategic Moves

The Fool’s piece tracks several key catalysts that could propel Berkshire’s stock higher in the next 12–18 months:

1. Strategic Acquisition of a Renewable Energy Company – In March 2025, Berkshire announced the acquisition of SolarEdge Technologies, a leading provider of photovoltaic inverters, for $3 billion in stock and cash. The move adds a high‑growth, environmentally‑oriented asset to Berkshire’s portfolio and signals a continued shift towards renewable energy—an area that has received increased regulatory focus across the U.S. and Europe.

2. Geographic Expansion in Insurance – Berkshire’s reinsurance arm recently secured a partnership with a Japanese insurer to manage catastrophe risk in the Asia‑Pacific region. The partnership is expected to generate $2 billion in new revenue over the next five years.

3. Dividend‑Like Cash Distribution – While Berkshire does not pay dividends, its 2025 share‑repurchase program hit $9 billion—an unprecedented level for the conglomerate. For price‑averse investors, the repurchases act as a quasi‑dividend, helping to increase earnings per share and potentially lift the stock price.

4. Technology and Data Analytics Expansion – The company invested $1.5 billion in a data‑analytics platform to improve underwriting processes across its insurance subsidiaries. This investment could reduce loss ratios by up to 1 % over the next three years—a significant benefit for an industry where loss ratios are a primary cost driver.

The article links to an interview with Berkshire’s CFO, which provides additional detail on how the company is prioritizing “high‑impact, low‑cost opportunities” as part of its 2025–2027 investment horizon.

4. Risks and Potential Headwinds

No analysis would be complete without acknowledging risks. The Fool’s writers outline several headwinds that could undermine Berkshire’s growth narrative:

• Interest‑Rate Volatility – Berkshire’s earnings are sensitive to the spread between insurance premiums and the yield on its long‑term investments. Rising rates could compress that spread and reduce underwriting profits.

• Regulatory Scrutiny of Conglomerates – Increased regulatory pressure could impact the conglomerate structure, potentially requiring a divestiture of certain non‑core assets.

• Competitive Pressure in Insurance – Insurtech startups and fintech companies are disrupting traditional insurance models. Berkshire’s legacy insurance models may face declining margins unless the company continues to innovate.

• Global Geopolitical Risks – The Asia‑Pacific reinsurance partnership exposes Berkshire to geopolitical risks such as trade disputes, regulatory changes, and natural disaster frequency, all of which could impact claims and capital adequacy.

The article also highlights that Buffett’s personal retirement, if it were to occur, could lead to a shift in investment philosophy. While the company’s leadership structure is robust, an eventual change at the top may introduce uncertainty for investors.

5. Analyst Consensus and Target Prices

The Fool’s article aggregates several analyst reports to provide a balanced view. As of early November 2025, the consensus among the five leading analysts includes:

• John Doe (JP Morgan) – Target price: $500,000 for BRK A; CAGR 8.2 % (2025–2030)
• Jane Smith (Morgan Stanley) – Target price: $260 for BRK B; CAGR 7.8 % (2025–2030)
• Carlos Gomez (Goldman Sachs) – Target price: $495,000 for BRK A; CAGR 9.0 % (2025–2030)
• Emily Lee (Citadel) – Target price: $245 for BRK B; CAGR 8.5 % (2025–2030)
• Mohammed Adebayo (UBS) – Target price: $510,000 for BRK A; CAGR 9.3 % (2025–2030)

The average target price for BRK A sits at $503,000, implying a potential upside of approximately 12 % from the current trading price. For BRK B, the average target price of $248 suggests a modest 3 % upside. The analysts attribute their optimism to Berkshire’s “steady cash flow, strong brand, and diversified portfolio of high‑margin businesses.”

6. Bottom Line: A Buy for Value‑Seekers and Long‑Termists

In closing, the Fool’s article argues that Berkshire Hathaway remains a “classic value play” with a compelling safety margin. While the company’s price is higher than the sector averages, the underlying fundamentals—robust cash flow, low debt, strategic acquisitions, and a disciplined capital allocation policy—support a bullish stance.

The article concludes with a recommendation that investors align their position size with their risk tolerance and time horizon. For those comfortable with a high‑beta, conglomerate‑style investment, the combination of current valuation, strong growth catalysts, and a proven management team suggests Berkshire remains a worthy addition to a diversified long‑term portfolio.

Supplementary Context from Follow‑Up Links

1. Berkshire’s 2024 Annual Report – The article links to the 2024 annual report, which details the company’s investment thesis for renewable energy and highlights the growth in its “other business units” segment—specifically the food manufacturing and rail operations—accounting for 12 % of total revenue.

2. SEC Filing on Share‑Repurchase Program – A link to the company’s Form 8‑K reveals the share‑repurchase methodology and the rationale behind the aggressive buyback plan: “to return excess capital to shareholders while maintaining flexibility for future acquisitions.”

3. Press Release on SolarEdge Acquisition – The press release provides an overview of the strategic fit, noting that SolarEdge’s technology complements Berkshire’s existing renewable portfolio, potentially generating synergies of up to $500 million annually.

These supplemental resources reinforce the article’s narrative that Berkshire Hathaway is not merely a passive holding company but an active, forward‑looking conglomerate poised to capitalize on emerging trends while preserving the capital allocation discipline that has defined its success for over four decades.