Berkshire Hathaway’s operating earnings rose to $11.3 billion
Berkshire Hathaway’s first-quarter operating earnings increased 18% year over year to $11.3 billion. The company’s earnings come from a diverse range of businesses, including insurance, railroad, and manufacturing operations.
The company held a record $397 billion in cash and short-term Treasury bills at the end of the first quarter. This war chest is being utilized by the new CEO, including the acquisition of homebuilder Taylor Morrison.
In comparison, Micron Technology trades at about 20 times its earnings, despite its stock losing more than a third of its value from its peak. Berkshire Hathaway trades at about 15 times its earnings, near its 52-week high.
Both stocks appear to be undervalued, with valuations below the overall market’s valuation.