Berkshire Hathaway Inc. is a multinational conglomerate headed by investment icon Warren Buffett that owns more than 60 businesses, including well-known brands such as GEICO auto insurance, battery manufacturer Duracell, Kraft Heinz and Dairy Queen. With so many household names under its ownership, the company can be attractive to various levels of investors. Here are some figures to help you assess the strength of Berkshire Hathaway stock so you have the information you need before you start investing.
Click through to learn how Warren Buffett ended up with three totally normal kids.
|What Berkshire Hathaway Is Worth|
|Berkshire Hathaway Share Price,
|Berkshire Hathaway Market Cap,
|GOBankingRates’ Evaluation of
Berkshire Hathaway Net Worth
|All information on 52-week range accurate as of June 20, 2018.|
|About Berkshire Hathaway|
|CEO Warren Buffett Net Worth||$81.4B|
Berkshire Hathaway Market Cap Range: $187B-$244B
Market capitalization considers all of a company’s stock, its shares outstanding, in order to gauge its worth . The higher the cap, the more value investors find with the company.
Berkshire Hathaway’s market cap ranges from $187 billion to $244 billion for June 2017 to June 2018. Part of the reason Berkshire Hathaway’s share price is so high compared with other stock is that the company has never split its stock. A stock split means a corporation increases its number of shares outstanding by dividing them, which in turn lowers the new units’ price. Stock splits don’t alter the overall value of the shares an investor owns; rather, they’re designed to attract new investors with more affordable share prices.
Berkshire Hathaway Net Worth: $618.1B
Even though market cap gives you a sense of what the market values a company at, it’s based entirely on market sentiment. Share prices change on a near-constant basis, which offers a less stable view of what the company is worth. GOBankingRates uses a company’s last three years of profit and revenue, along with its liabilities and assets, to calculate its net worth.
Based on Berkshire Hathaway’s revenue and profits from the last three years and its assets and liabilities, the company is worth over $618 billion.
Berkshire Hathaway CEO Warren Buffett
Berkshire Hathaway CEO Warren Buffett is famous in the business world for his investment acumen and advice. He displayed an entrepreneurial spirit in his youth, peddling goods like soda and candy in his neighborhood. He made his first stock purchase at age 11, and at age 14 he filed his first tax return, which totaled $35.
The “Oracle of Omaha” has committed to giving 99 percent of his fortune to charity. As of 2017, he has donated almost $28 billion, according to CNBC. He has also requested more billionaires give away their wealth and has said he will only leave his children a fraction of his fortune.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
* Warren Buffett’s net worth accurate as of June 28, 2018, according to Forbes’ The World Billionaires 2018 list’s real-time data.