No. of Recommendations: 8
Over the last 26 years Berkshire's BV and IV growth have been quite consistent at 10%/yr, with an r^2 of 0.989. This is in spite of the 2000 tech crash, the 2008 financial crisis and the 2020 Covid pandemic. What changes and what growth do people here expect for BRK in 2026 and beyond?
If I had to guess, I'd guess slower growth. I'm not predicting a sudden fall. Berkshire is too sound for that, but a slow decline in growth. I don't expect Ted Weschler to make major changes to Berkshire's equity portfolio, at least not quickly, but I do expect Greg Abel to make a major acquisition. It's just too tempting for a new CEO with $377 billion in cash and T-Bills.
The broad market will affect Berkshire in two ways: (1) With a P/E of 28 and 3-year return of 20.6%/yr, the S&P 500 is highly likely to correct downward, and Berkshire's equity portfolio will fall with it, although not as much, and (2) this correction should present buying opportunities for Berkshire in its equity portfolio, and quite possibly present an opportunity to acquire a whole company.
What do you predict?
