CluenexBerkshire Hathaway BRK.B
Berkshire Hathaway scores weak on business quality (3.4 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Berkshire Hathaway does
Berkshire Hathaway makes money through a sprawling mix of insurance, freight rail, energy, and retail operations, anchored by float from GEICO and BNSF. Greg Abel is deploying capital into stakes like a $6.8B push into homebuilders while sitting on $51.9B in cash.
- What it does best
Berkshire converts massive float and operating scale into steady earnings, backed by $51.8B in cash. This fortress liquidity allows opportunistic equity buying during market distress that pure-play insurers cannot match.
- The main risk
Mortgage rates sitting near 7.5% and low builder sentiment threaten Greg Abel's recent $6.8B homebuilder stake expansion, exposing capital to housing market slowdowns.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins of 15.2% and an ROE of 11.9% place return on equity in the 34th sector percentile. Profitability remains stable but fails to scale aggressively.
The conglomerate model relies on permanent capital and diversification, though its revenue growth ranks in the 12th percentile of its sector. Scale prevents quick replication, but size dampens agility.
Revenue growth crawled to 0.0% with $384.7B in latest sales. Growth remains muted compared to its historical pace as massive size limits expansion speed.
Total debt sits at $129.1B against $51.9B in cash, producing a manageable debt-to-equity of 0.2. Free cash flow hit $24.2B, keeping the balance sheet soft.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $250K on the open market.
Our sealed record on BRK.B
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Berkshire Hathaway scores weak on the Cluenex quality check (3.4 of 10), measured against its own industry. Profitability is weak, moat weak, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: 1 insider bought $250K on the open market.
Nov 2, 2026.
See BRK.B today
- Today's verdict on BRK.B, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Berkshire Hathaway (BRK.B)”, https://cluenex.com/stocks/brk.b/, data as of Oct 10, 2026.