BRK.B: Float, cash, and succession

Snapshot

BRK.B price

USD 485

Mkt cap

USD 1050.0B

Cash & equiv.

USD 300.0B

P/B

1.55

Thesis

Berkshire Hathaway is a float-funded conglomerate. Post Buffett→Abel operating transition, the debate is capital-allocation continuity and cash deployment.

Business

Model: insurance float + wholly owned ops + equity portfolio. Flagships: insurance; BNSF; BHE; large equities. Edge: cheap float + culture. Strategy: underwriting discipline + opportunistic deals.

Value chain

Upstream reinsurance/markets; midstream ops; downstream insureds. Risks: cat; rates.

Valuation

Operating earnings + cash; ignore quarterly investment swings; P/B and cash are anchors.

Financial trend (~24 months)

Illustrative 8Q with YoY/QoQ:

Revenue · last 8Q

Interactive chart available in the reader.

Gross margin · last 8Q

Interactive chart available in the reader.

Operations

Combined ratio, rail/energy, cash and buybacks.

Key financials

Key financials

Item	Value	YoY	Note
Operating earnings	Record path	+	Insurance+rail+energy
Cash & T-bills	Very large	—	Dry powder
AAPL stake	Still large	—	Trimmed over time
Insurance float	Core engine	—	Underwriting

Competition

Vs P&C and large financials; unique industrial mix/culture.

Peer map

Peer map

Company	Share/role	Margin	Strength	Weakness
Berkshire (self)	Conglomerate	n/a	Float+capital	Size/succession
Allstate/PC peers	Insurance	n/a	Pure play	Less divers.
JPM (capital)	Financial peer	n/a	ROE	Different model

Management

Management (24m)

Management (24m)

Role	Name	Since	24m change
CEO	Greg Abel	2026	CEO succession from Buffett era
Chair	Warren Buffett	long-standing	Transitioning operating CEO role
CFO	Marc Hamburg	long-standing	No material change

Stability: CEO succession is the 24m change — transition; culture continuity is key.

Outlook

Track operating earnings, cash, large deals, buybacks.

Scenarios

Risks