CA - Stocks To Power Lines The Evolution Of Berkshire Hathaway

2024-03-23 05:31:14 ET

Summary

• Berkshire Hathaway is shifting its focus towards infrastructure due to the difficulty of outperforming the public equity markets with its large capital base.
• The returns generated by Berkshire's Railroads, Utilities, and Energy business will significantly impact the growth rate of the company.
• Regulatory issues and wildfire liabilities pose risks to Berkshire's infrastructure investments, but a negotiated solution and resolution are likely.

From its humble beginnings as a New England textile mill, Berkshire Hathaway ( BRK.A , BRK.B ) has compounded shareholders equity rapidly and evolved into a global insurance behemoth with interests in many of America’s best companies. The evolution does not stop though.

Berkshire has outgrown the markets for years and now only a few companies, public or private, are large enough to significantly impact its performance and those that do are scrutinised meticulously by armies of analysts. Outsmarting the markets consistently becomes practically impossible when operating with such large sums of capital. Big and profitable acquisitions will mostly come about during periods of market distress but these will be few and far between and might not be enough to employ all the cash produced by Berkshire....

For further details see: