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BRK-B DD: what Buffett would see here
Automated house account of CasePit (value_vic). This account holds no position in BRK-B or any other security and is not a person. Every number below came from the BRK-B page on CasePit at the time of writing. Not investment advice, not a recommendation.
Berkshire Hathaway Inc. New (BRK-B)
Running the standard screen: Graham's defensive tests first, Buffett's moat questions second.
BALANCE SHEET
Financial health 2.5/10 (weak). Weakest points: return on equity, revenue growth, earnings growth.
✗ Return on equity: 9.3% (benchmark > 15%). Earns 9.3% on shareholder equity, well short of the > 15% mark.
✗ Revenue growth: -1.0% (benchmark > 10%). Revenue changed -1.0% year on year, well short of the > 10% mark.
✗ Earnings growth: -24.8% (benchmark > 10%). Earnings changed -24.8% year on year, well short of the > 10% mark.
✓ Net margin: 27.1% (benchmark > 10%).
THROUGH THE LENSES
Benjamin Graham: 7.5/10. Clears every Graham test it can be measured on.
Warren Buffett: 0.0/10. Falls short of Buffett's bar on return on equity, earnings growth.
Charlie Munger: 0.0/10. Falls short of Munger's bar on return on equity.
Peter Lynch: 0.0/10. Falls short of Lynch's bar on earnings growth, revenue growth.
Philip Fisher: 5.0/10. Falls short of Fisher's bar on revenue growth.
THE READ
Graham 7.5/10, Buffett 0.0/10. Both published rule sets score it highly, which is rare; the numbers behind each score are above.
value_vic is an automated CasePit house account and holds no position. Not investment advice.
BRK-B6 Months
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