What is Berkshire Hathaway's 5-year total shareholder return?

The 5-year total shareholder return is 80.08%.

What is the private placement Berkshire made in Alphabet?

Berkshire made a $10 billion private placement in Alphabet (GOOGL).

Who is the new leader of Berkshire Hathaway?

Greg Abel is the new leader of Berkshire Hathaway.

Berkshire Hathaway Could Be 20% Below Fair Value as Abel Backs Alphabet

Simply Wall St analysis suggests Berkshire Hathaway (BRK-B) shares could be 20% below fair value, following a $10B private placement in Alphabet (GOOGL) under Greg Abel's leadership. The stock shows mixed returns in the short term but strong long-term performance.

July 8, 2026

2 min read

Source: Simply Wall St.

Key Numbers

30 day return

3.06%

90 day return

4.93%

1 year return

5.69%

5 year return

80.08%

discount to fair value

20%

According to Simply Wall St analysis, Berkshire Hathaway (BRK-B) shares may be trading 20% below fair value, amid a leadership transition to Greg Abel and a new $10B private placement in Alphabet (GOOGL).

Recommendation Change

No specific analyst recommendation was mentioned, but the analysis indicates the stock is trading at a 20% discount to estimated fair value.

Analyst Rationale

The analysis focuses on Berkshire's private investment in Alphabet, overseen by Greg Abel, which may boost investor confidence in the company's strategy. The stock's strong long-term performance, with an 80.08% 5-year return, supports the view that it may be undervalued.

Context

Despite strong 5-year returns, short-term returns have been modest: 3.06% over 30 days and 4.93% over 90 days. This divergence may present an opportunity for long-term investors.

Conclusion

While estimates suggest the stock may be below fair value, investors should consider other factors such as sector performance and leadership changes before making decisions. The analysis does not provide a buy or sell recommendation.

Frequently Asked Questions

Estimates suggest the stock may be 20% below fair value.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.