Berkshire Hathaway (XSWX:BRK) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

XSWX:BRK Berkshire Hathaway Inc XSWX:BRK
71 GF Score
Price CHF398.20
GF Value CHF433.99
Valuation Fairly Valued
! 4 Warning Signs
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What is Berkshire Hathaway Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Berkshire Hathaway is: Moderate Risk: Sensitive, better choose undervalued stock.

Berkshire Hathaway  (XSWX:BRK) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Berkshire Hathaway Risk Assessment Related Terms

XSWX:BRK vs AIG, HIG, ACGL: Risk Assessment Comparison

For the Insurance - Diversified subindustry, Berkshire Hathaway's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Insurance Industry

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

* The bar in red indicates where Berkshire Hathaway's Risk Assessment falls into.


XSWX:BRK
71GF Score
Berkshire Hathaway Inc XSWX:BRK
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Berkshire Hathaway (XSWX:BRK) Overvalued in 2026?

Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued. The current stock price of CHF398.20 is trading 8.2% below its estimated GF Value™ of CHF433.99. GuruFocus considers Berkshire Hathaway to be Fairly Valued.

Key valuation signals for XSWX:BRK:

  • Risk Assessment:
  • GF Value™: CHF433.99 vs. price of CHF398.20 (8.2% below fair value)
  • GF Score™: 71/100 with 4 warning signs

No single metric tells the full story. See the XSWX:BRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Berkshire Hathaway Business Description

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 its operations to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis. Berkshire generated close to $371.4 billion in operating revenue in during 2025.
71GF Score

Get the complete analysis for XSWX:BRK

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF398.20
Price
CHF433.99
GF Value