Is Berkshire Overvalued? The Rare Inverse Play for Those Betting Against the Oracle

2026-02-16 15:36:19 ET

Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) is often considered a rock-solid long-term investment. It's delivered an average annual return of nearly 20% ever since Warren Buffett took complete control of the company in 1965, compared to the S&P 500's average annual return of 10%.

Berkshire beat the market as Buffett transformed the aging textile maker into a diversified conglomerate that owned cash-rich insurance, railroad, utility, and consumer staples companies. It reinvested that cash into its massive portfolio of stocks , which is now worth $320 billion -- or 30% of its market capitalization of $1.08 trillion.

Image source: The Motley Fool.

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