Berkshire Hathaway Inc (BRK.A)

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"Berkshire After Buffett"

"Summary
* The main concern readers express in their comments on Berkshire is about what happens when Buffett dies.

* We put the possible Buffett premium into perspective by discussing what Berkshire is without Buffett, its valuation compared to the market and whether Berkshire's investing mindset will remain.


"As for the Berkshire stock Buffett premium, summing up the above $23.1 billion and the $8.3 billion of hidden earnings, I get to earnings of $31.4 billion (the $3.7 billion of dividends are already included in the $23.1 billion under insurance investment income).

"At a market capitalization of $501.6 billion, the price-to-earnings (P/E) ratio for Berkshire in a normal business year would be 16. If I compare Berkshire’s 2019 P/E ratio with the S&P 500 2019 P/E ratio of 23.15, Berkshire is actually trading at a discount to the market, not at a premium."

"Berkshire after Buffett investing summary
To sum up, I think one can expect a long-term investing return between 6% and 10% from BRK, depending on what happens in the economy and the opportunities they get to grow slowly.

That is a good return, especially given the fact Berkshire is made to last forever, made to be a financial fortress as Buffett likes to call it. I think Buffett has prepared everything such that things continue to work in the future as they have worked in the past."

https://seekingalpha.com/article/4378294-berkshire-after-buffett