Berkshire Hathaway Inc. (BRK-B) Stock Analysis

Berkshire Hathaway’s primary competitive advantage is its exceptional financial strength, underpinned by a $310 billion statutory surplus in its U.S. insurance subsidiaries as of year-end 2024—far exceeding most peers. This capital base, combined with AA+/A++ credit ratings, enables Berkshire to write large, complex insurance risks and act as a market of last resort, a position few rivals (e.g., Chubb, Allianz) can match.

The company’s decentralized structure fosters entrepreneurial autonomy across its 80+ operating businesses, supporting agility and long-term decision-making. Unlike conglomerates that centralize control, Berkshire’s model attracts and retains high-quality managers, often former owners, who operate with minimal interference. This culture is difficult to replicate and has contributed to consistently high customer satisfaction in core subsidiaries such as GEICO and BNSF.

Berkshire’s insurance “float”—$174 billion as of June 2025—provides a low-cost, stable funding source for investments, a structural advantage over most insurers and asset managers. The ability to invest this float in both public equities and wholly owned businesses (e.g., BNSF, Berkshire Hathaway Energy) creates a self-reinforcing cycle of earnings and capital growth.

Diversification across insurance, infrastructure, manufacturing, and retail reduces earnings volatility and insulates the group from sector-specific shocks. While rivals like Markel and Fairfax pursue similar models, none match Berkshire’s scale, balance sheet strength, or breadth of operations. The main threats are succession risk and regulatory scrutiny, but the company’s culture and capital base provide significant resilience.