Summary
- Everybody knows that Berkshire is a unique business, but many investors underestimate the true degree to with the company is one of a kind.
- Access to low-cost capital is a real game-changer for Berkshire over the long term.
- Valuation is clearly attractive at current prices.
- Succession risk and growth limitations due to its large size are some of the most important risk factors.
- All things considered, Berkshire Hathaway looks like a remarkably attractive investment proposition in terms of risk vs. potential reward.
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Everybody knows what Berkshire Hathaway (BRK.A) (BRK.B) does, but the company is not fairly appreciated by the market.
Berkshire has access to abundant capital at exceptionally low cost for long periods of time, and this cheap leverage is a real game-changer for the company in terms of its ability to produce attractive returns on shareholder capital over the long term.
Such as important, current valuation levels are offering a buying opportunity for long-term investors in Berkshire Hathaway stock.
