Key points of Fundamental Analysis of Berkshire Hathaway(BRK):
- Officially, Berkshire Hathaway is transportation, energy, and an insurance company.
- Due to its area coverage and economies of scale, Berkshire’s transportation business enjoys a cost advantage over its competitors.
- Berkshire’s insurance enjoys a switching cost advantage.
- Berkshire’s business is durable, and reliable in the long run, but it is slow. What makes Berkshire’s price rise is probably due to its stock investment and buyback.