Buffett's Company Undervalued

Berkshire Hathaway is a four-star stock, say Morningstar analysts, as 2013 results reveal Warren Buffett's company has a diversified and profitable portfolio

Greggory Warren, CFA 3 March, 2014 | 9:24AM

There was little in wide-moat Berkshire Hathaway's fourth-quarter and full-year results that would alter our long-term view of the firm. We are leaving our fair value estimate $215,000 a share in place. The company is currently trading at around $174,000 a share.

Good earnings results for 2013 once again demonstrated the value of Berkshire's diversified portfolio, as solid and consistent results from the firm's non-insurance operations helped smooth out some of the volatility seen in its insurance operations during the year. 

Berkshire shares increased 18.2% year over year, higher than our full-year forecast of a 15% gain. With the S&P 500 Index up 32.4% during 2013, this marked just the tenth time in the past 49 years that Berkshire has trailed the benchmark.

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About Author

Greggory Warren, CFA  Greggory Warren, CFA, is a senior stock analyst with Morningstar.

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