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BRK.B
Barrons
176 days

Berkshire’s Results Weren’t as Great as They Looked. A Lack of Buybacks Was a Negative. - Barron's

1. Q4 earnings surged with strong insurance and record cash holdings. Results impress executives and investors. 2. Earnings included a one-time currency gain that slightly distorted core performance. Adjusted profits remain robust. 3. Lack of share repurchases signals Buffett’s view on BRK.B valuation. This may affect investor sentiment. 4. Buffett hints at near-term leadership change with Greg Abel as likely successor. This raises future uncertainty.

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FAQ

Why Bullish?

Despite a one-time currency boost and limited repurchases indicating high valuation, record operating profits and strong insurance underwriting bolster investor confidence. Historical responses to robust earnings at Berkshire have led to positive price reactions even amid transitional concerns.

How important is it?

The report combines record earnings, notable operational highlights, and an imminent leadership shift—all factors that deeply affect investor sentiment and long-term prospects of BRK.B.

Why Long Term?

The leadership transition and solid operational fundamentals point to long-term implications. Past transitions at large conglomerates show that enduring business quality can sustain price gains over years.

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