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3 Factors to Consider Before Buying Berkshire Hathaway

By Chris Hill – Feb 25, 2014 at 8:09PM

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Thinking of buying shares of Berkshire Hathaway? Here are three criticisms to consider first.

In this segment from Tuesday's Investor Beat, host Chris Hill and Motley Fool analyst Mike Olsen look at three criticisms that have recently been levied against Berkshire Hathaway (BRK.A -0.82%) (BRK.B -0.90%), ahead of its upcoming earnings report. The first is that the stock has become too big to invest in, the second is that the company will someday be Buffettless, and the third is that with Buffett himself having come out and said that he will never buy back shares of the company for any more than 1.2 times book value; with shares currently trading at 1.4 times book, why should investors buy when even Buffett himself considers 1.4 to be too expensive?

As a shareholder himself, Mike looks at these three ideas and discusses why he disagrees that each would be a cause for concern.

Chris Hill has no position in any stocks mentioned. Michael Olsen, CFA, owns shares of Berkshire Hathaway. The Motley Fool recommends and owns shares of Berkshire Hathaway. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Berkshire Hathaway Stock Quote
Berkshire Hathaway
BRK.A
$464,837.50 (-0.82%) $-3,862.50
Berkshire Hathaway Stock Quote
Berkshire Hathaway
BRK.B
$307.78 (-0.90%) $-2.79

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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