2024-06-20 07:43:31 ET
Summary
- Berkshire Hathaway is a high quality business with a wide economic moat around its business - and that moat is independent from Warren Buffett leading the company.
- However, Berkshire was struggling in the last two decades to outperform the S&P 500, and we have to assume a similar performance in the years to come.
- Overall, Berkshire is a solid investment, but maybe not for the current price.
It might seem a bit strange that I have never written about Berkshire Hathaway Inc. ( BRK.A ) ( BRK.B ) as the business is basically fitting most of the criteria I am looking for in a great long-term investment. I have mentioned Berkshire Hathaway in my article about family-run businesses . And while it is not completely accurate to call Berkshire Hathaway a family-run business, it is fitting the criteria of the CEO playing an important role and the founder having control over the business due to the majority of (voting) shares.
It might also seem a bit surprising that I never wrote about Berkshire Hathaway, as Buffett and Munger can be seen as the fathers behind the concept of the economic moat, which is playing an important role in my style of investing. And in the spirit of identifying high-quality businesses that can defend themselves against competitors, let’s take a closer look at Berkshire Hathaway....
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Berkshire Hathaway: Wide Moat Business, But Not A Bargain