Morningstar Sees Berkshire Q3 Earnings Rising, Calls Stock 10% Overvalued Ahead of Nov. 7
Updated
Updated · Morningstar · Nov 3
Morningstar Sees Berkshire Q3 Earnings Rising, Calls Stock 10% Overvalued Ahead of Nov. 7
3 articles · Updated · Morningstar · Nov 3
Summary
$510 per Class B share is Morningstar’s fair value for Berkshire Hathaway, and it says the stock trades at roughly a 10% premium before the Nov. 7 Q3 earnings release.
Mid-to-high single-digit operating earnings growth is expected in the third quarter, with weaker insurance underwriting offset by stronger non-insurance results across BNSF and Berkshire Hathaway Energy.
Insurance margins are normalizing as industry pricing eases from post-covid highs, though Berkshire Hathaway Reinsurance Group should stay profitable because the quarter lacked major catastrophe losses.
$364.7 billion in cash and equivalents at end-June 2026 underpins Berkshire’s low uncertainty rating and has helped the shares act as a haven in volatile markets, driving a gain of more than 10% in the past month.
Morningstar says Berkshire’s biggest longer-term challenge is deploying capital at its current size, with CEO Greg Abel now facing added scrutiny after Warren Buffett resigned as executive chair in September 2026.
Will Berkshire's booming railway and energy sectors be enough to mask GEICO's shrinking underwriting margins in tomorrow's highly anticipated Q3 earnings report?
With $365 billion in cash and Buffett stepping down, how will CEO Greg Abel deploy this massive capital in a seemingly overvalued market?