Berkshire Hathaway updated April 3, 2022

Berkshire Hathaway is updated and rated Weak Buy / Hold at $352. It’s up a whopping 40% since it was rated a (lower) Buy just over a year ago at $251. Certainly its improved results , stock portfolio gains and the improved economy justify some of that increase. But it is certainly more expensive in relation to earnings and book value now than it was a year ago.  I could perhaps have rated it a (lower) Sell. But it’s not outrageously expensive by any means.  It will be interesting to see if Buffett continued to have it buy back shares at the recent higher prices. Berkshire bought back heavily in 2021 at prices that averaged as high as $288 in December. Possibly $350 will have cooled the enthusiasm but it’s hard to say.

Historically, it has been a mistake to sell this stock. Nevertheless I plan to sell some that I hold with a large gain in two RRSP accounts. I’m looking to build up my cash position and will take some of my gains here off the table.

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