Can the good times last at Berkshire Hathaway? Stock market experts seem to think so, but there may be some clouds on the horizon for the company. Berkshire Hathaway stock at a glance. Berkshire Hathaway's Class A stock price stands at $287,600, with a one-year analyst target estimate of $348,000 per share. Berkshire's Class B stock is a more achievable goal for Berkshire investors, and currently trades at $191 per share. The company's stock is returning nearly 12 percent over the last year, and Berkshire Hathaway is, as always, flush with cash Berkshire Hathaway's stock value remains robust, primarily because of its solid core holdings, which include some of the biggest brand names in America.
Jun 1, 2017 at 11:42AM Warren Buffett transformed Berkshire Hathaway () () from a dying mill company to the massive conglomerate that it is today.
Over more than half a century, Berkshire has achieved distinction as one of the most successful long-term stock investments in the market, and along the way, it has celebrated several key milestones. The following events have gone a long way toward defining the history of Berkshire Hathaway's stock, and investors hope that its past performance will make shares a good value going forward as well. 1. Buffett's Berkshire buy Buffett's stake in Berkshire Hathaway dates back to the 1960s, when his partnership identified the company as a cheap stock in the declining textile industry.
Buffett identified that when Berkshire closed a mill, it would buy back stock, giving him an opportunity to turn a profit. Yet by 1964, Buffett owned a considerable amount of stock. At one point, Berkshire offered to buy back his stake, and they agreed orally to a price of $11.50 per share.
Yet when the actual offer came, it was for $11.375 per share. That angered Buffett and inspired him to buy a controlling interest in Berkshire, and that laid the foundation for the company that eventually grew far beyond its textile industry roots. data by 2. Berkshire's exponential growth One key attribute of .
The company has eschewed stock splits in its Class A shares, allowing them to appreciate as far as the market was willing to carry them. That took the stock to the $1,000 mark by 1983, which at the time was even rarer than it is today. It took just six years for Berkshire to climb from $100 to $1,000 per share, and another nine years brought the company's share price to the $10,000 mark by 1992.
That strong performance outpaced the overall market, but it was supported by fundamentals. Each year, Berkshire has posted the gains in its per-share book value, and the trajectory bears a strong resemblance to its stock performance. Without actual business growth, Berkshire wouldn't have seen its share price reach unprecedented heights.
3. Reaching out to small investors with Class B shares In 1996, Berkshire Hathaway created its Class B shares, giving the right to existing Class A shareholders to convert each share of Class A stock into 30 shares of Class B stock at will. The net impact was to give small investors a way to invest in Berkshire, which at the time commanded more than $30,000 per Class A share. Buffett didn't want to make the move, but he did so in response to financial entrepreneurs who sought to create an alternative investment vehicle to make Berkshire accessible to those with modest amounts of capital.
Rather than allowing outsiders to reap fees, Buffett instead made the move himself, potentially saving ordinary investors thousands of dollars in added costs over the years and creating a way for them to participate in Berkshire's amazing run. 4. Berkshire's one stock split Similarly, Buffett was never a fan of stock splits, but . In 2010, Berkshire did a 50-for-1 split of its Class B stock. That made the shares more accessible to shareholders in railroad giant Burlington Northern when Berkshire bought out the company.
The move allowed more Burlington shareholders to retain interests in Berkshire stock rather than having to liquidate what would have been fractional shares. Now, Class A shares are convertible to 1,500 Class B shares, and the current Class B price around $165 per share is squarely within the range of where typical stocks in the market trade.
5. Six-figure milestones for Berkshire In the past quarter-century, Berkshire's share price growth has slowed, but it has hardly come to a standstill. Just 14 years after reaching $10,000 per share for the first time, . Just a decade later, Berkshire stock fetched $250,000 per share, and that's close to its current level today. Berkshire Hathaway looks little like it did half a century ago, and the way it has transformed itself is a testament to the investing prowess of Warren Buffett and his team.
Long-time Berkshire shareholders have confidence that the company's legacy will survive Buffett and keep the stock's history looking favorable for decades to come. Dan Caplinger has been a contract writer for the Motley Fool since 2006.
As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.
best dating newbury berkshire hathaway stock price class b - Why Is Berkshire Hathaway Stock So Expensive?
FOR A FREE CAR INSURANCE RATE QUOTE THAT COULD SAVE YOU SUBSTANTIAL MONEY OR CALL 1-888-395-6349, 24 HOURS A DAY If you have any comments about our WEB page, you can write us at the address shown above.
However, due to the limited number of personnel in our corporate office, we are unable to provide a direct response. Copyright © 1978-2018 Berkshire Hathaway Inc.
Brand Index Methodology The Morning Consult Brand Index is an indicator of brand strength among consumers. Each Fortune 500 company receives a score based on a ratio of favorable to unfavorable impressions among U.S. adults and its overall favorability. This ensures that a score takes into account how well-liked a company is among people who have an opinion of it without penalizing companies that are not consumer-facing. Morning Consult polls thousands of adults across the country each week.
The surveys are conducted online using large, established online survey vendors. The data is weighted to approximate a nationally representative sample based on age, race/ethnicity, gender, educational attainment, region, annual household income, home ownership status and marital status.
Warren Buffett’s Berkshire Hathaway—whose many subsidiaries include Geico and the railroad Burlington Northern—struggled to grow through acquisitions in 2017, losing out on its bid for Oncor when it refused to raise its offer.
Still, the of Omaha’s investment portfolio beat the S&P 500, as Buffett traded in underperforming stocks like for winners including , now Berkshire’s largest holding. And while the heavy hurricane season was tough on Berkshire’s reinsurance business, it more than made up for the losses by selling a world-record-setting policy to for $10.2 billion. All products and services featured are based solely on editorial selection.
FORTUNE may receive compensation for some links to products and services on this website. Quotes delayed at least 15 minutes. Market data provided by . ETF and Mutual Fund data provided by .
Dow Jones Terms & Conditions: . S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors.
All rights reserved . Powered and implemented by
BRK.B: Berkshire Hathaway Class B Stock Review