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Berkshire Hathaway (BRK.A) has just raised several tranches of yen debt, totaling more than ¥272 billion, at fixed coupons ranging from 2.077% to 4.037%, all through senior unsecured Eurobonds.
This funding push coincides with Greg Abel’s increased focus on Japan, including earlier allocations to major trading houses and Tokio Marine. It naturally raises questions about how Berkshire might pair this yen financing with future overseas investments.
See our latest analysis for Berkshire Hathaway.
Despite the yen bond issuance and the leadership shift to Greg Abel, Berkshire’s recent 30 day share price return of a 2.02% decline and year to date share price return of a 3.24% decline contrast with its 3 year total shareholder return of 45.16%. This suggests that long term holders have still seen sizeable gains even as short term momentum has cooled.
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With Berkshire trading about 6% below the average analyst price target and an estimated intrinsic value gap of roughly 41%, the key question is simple: Is the market offering a discount, or already baking in future growth?
According to davidlsander, Berkshire’s last close of $720,002.89 sits well below a narrative fair value of $943,785.74, which frames the current pullback in a very different light.
Berkshire Hathaway”s combination of financial strength, disciplined investment approach, and strong leadership is presented here as a compelling investment option. Based on the company”s historical performance and the positive outlook described for its future, a net inflation growth of 12-15% in the share price is suggested as potentially achievable in this narrative. Investors who are willing to adopt a long-term perspective and appreciate the value of quality companies may find Berkshire Hathaway to be a rewarding investment according to this view.
Curious how that fair value is built? The narrative leans heavily on revenue expansion, resilient margins, and a future earnings multiple that would likely surprise many Berkshire followers.
Result: Fair Value of $943,785.74 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.