Is Berkshire Hathaway Stock a Buy Now?
Berkshire Hathaway (NYSE: BRK.B) (NYSE: BRK.A) enables people to invest with one of the greatest investors of all time, Warren Buffett. The conglomerate owns a set of businesses outright, and it has a large portfolio of publicly traded stocks.
The core of Berkshire's empire is insurance companies, such as GEICO and General Re. Buffett likes the insurance industry, as it provides him with a lot of money to invest with through its float. Float is the money that insurance companies collect and hold until a claim is paid out. While most insurance companies invest in safe, fixed-income securities to boost their returns, Buffett takes a different approach, investing in great companies that he considers undervalued.
This unique strategy has worked, making Berkshire one of the largest companies in the S 500 index with a $1 trillion market cap. But does that make the stock a buy?
Source Fool.com
