Y - Is Berkshire Hathaway A Buy As It Acquires Alleghany?

• At 1.5% the size of Berkshire, Alleghany is hardly a game changer, but its fit within reinsurance and manufacturing/consumer units make it a highly desirable acquisition.
• Deploying low-yield cash makes the deal accretive, and Alleghany CEO Joe Brandon is an old Buffett friend who will add depth to Berkshire's insurance businesses.
• Berkshire's ongoing diversification, decentralized operational structure, and centralized capital allocation provide assurance of continued outstanding returns.
• At this point Berkshire stock has beaten the S&P 500 on all time frames, deservedly so, despite the past decade of tech growth and outperformance.
• Investors new to Berkshire might build a position in stages, while looking for an opportunity to buy heavily in a major market downturn.

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