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Last week Berkshire Hathaway reported record quarterly numbers. As you well know, this is Warren Buffett's behemoth conglomerate that now sits on a record $128bn in cash.
Net earnings came in at a whopping $16.5 billion from it's railroad, insurance, industrial and retail businesses. As well as a large listed equity portfolio which includes big banking exposure.
Despite the company breaking all its own records the share price is actually quite flat over the last 20 months. Basically it has gone through a PE compression.
If you strip out the cash, the share trades on 15 times earnings. That is why they are doing big share buy backs. The king of investing believes his own stock is offering good value.
If you feel you want a good conservative anchor in your portfolio, then Berkshire is a great option. We would be happy to recommend this stocks as a buy.