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Berkshire Hathaway GF Value Rank

: 5 (As of Today)
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Berkshire Hathaway has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Insurance - Diversified subindustry, Berkshire Hathaway's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Berkshire Hathaway GF Value Rank Distribution

For the Insurance industry and Financial Services sector, Berkshire Hathaway's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Berkshire Hathaway's GF Value Rank falls into.



Berkshire Hathaway GF Value Rank Related Terms

Thank you for viewing the detailed overview of Berkshire Hathaway's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Berkshire Hathaway Business Description

Berkshire Hathaway logo
Address
3555 Farnam Street, Omaha, NE, USA, 68131
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
Executives
Jain Ajit director, officer: Vice Chairman 100 FIRST STAMFORD PLACE BHRG STAMFORD CT 06902
Munger Charles T director, officer: Vice Chairman 355 S GRAND AV 34TH FL LOS ANGELES CA 90071
Buffett Warren E director, 10 percent owner, officer: Chairman and CEO 3555 FARNAM ST STE 1440 OMAHA NE 68131
Witmer Meryl B director 655 THIRD AVENUE 11TH FLOOR NEW YORK NY 10017
Chenault Kenneth I director AMERICAN EXPRESS COMPANY 200 VESEY STREET NEW YORK NY 10285
Gottesman David S director
Guyman Charlotte director 3324 78TH PL. N.E. MEDINA WA 98004
Olson Ronald L director EDISON INTERNATIONAL 2244 WALNUT GROVE AVENUE ROSEMEAD CA 91770
Abel Gregory director, officer: Vice Chairman C/O BERKSHIRE HATHAWAY INC. 3555 FARNAM STREET OMAHA NE 68131
Murphy Thomas S director C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1010
Burke Stephen B director 41 CENTRAL PARK WEST - APT 11A NEW YORK NY 10023
Keough Donald R /ny director 200 GALLERIA PARKWAY, SE SUITE 970 ATLANTA 2Q 30339-5945
Bill & Melinda Gates Foundation Trust 10 percent owner 2365 CARILLON POINT KIRKLAND WA 98033
Decker Susan L director C/O YAHOO INC 701 FIRST AVE SUNNYVALE CA 94089
Chace Malcolm G director ONE PROVIDENCE WASHINGTON PLZ 4TH FL PROVIDENCE RI 02903

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