BRK-B Research Update — August 28, 2026

Updated Thesis

Berkshire Hathaway is a diversified insurance, railroad, utility, industrial, retailing and housing conglomerate whose high business quality rests on low-cost investable insurance float, permanent capital, decentralized operations, BNSF's difficult-to-replicate rail network and exceptional liquidity. Q2 2026 revenue rose 10.0% year over year to $101.8 billion and operating earnings rose 16.3% to $13.0 billion, while BNSF revenue increased 14.6%; however, GAAP earnings are materially affected by unrealized investment marks. At $503.70, the shares trade at 12.65x trailing earnings, 15.36x EV/EBITDA and 44.82x price-to-free-cash-flow, with the trailing P/E requiring caution because investment gains can distort earnings.

The investment grade as of this refresh is B — solid business quality. A-tier business, B-tier valuation with 4.7% upside to $527.20 fair value.

Grade Change

In this research cycle, the investment grade for Berkshire Hathaway Inc. moved from D to B. A-tier business, B-tier valuation with 4.7% upside to $527.20 fair value.

Key Metrics at a Glance

Current price: $503.70

These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.

Our 12–18 Month Outlook

Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. Berkshire Hathaway Inc. remains in our covered universe with a solid-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.

Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.

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