BERKSHIRE HATHAWAY INC

Where It Passes

Where It Falls Short

• Efficiency0% pass✗ 5▾

  All 4 investors flag BRK-A's efficiency

  Revenue / Total Assets Change YoY0.32x -> 0.30x

  ✗PiotroskiImproved YoY

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Valuation8% pass✓ 4✗ 22▾

  11 of 12 flag BRK-A's valuation — Graham, Lynch, Dreman +8 more

  Net income / market capitalization+6.12%; #1390/6340 (top 21.9%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS15.3x

  ✗Graham<= 15x

  Price-to-Book Ratio1.8x

  ✗Graham<= 1.5x

  P/E x P/B27.20

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)1.62

  ✗Lynch< 1.0 (ideally < 0.5)

  Price / EPS19.1x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)27.8x

  ✗Dreman< 8x

  Price / Book Value per Share1.8x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=19.1x, OE Yield=4.7%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=19.1x, FCF Yield=2.0%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=19.1x, P/B=1.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-1.8% (IV=$874375.00 vs Price=$889794.00)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share51.1x

  ✗Ackman<= 25

  Price vs. Trailing Low127% of trailing low ($702614.00)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.6041; #2512/6449 (top 39.0%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS19.1x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.02x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+82.1%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3137; #3264/5247 (top 62.2%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+1.81%; #2281/4519 (top 50.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+23.58%; #1207/6202 (top 19.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts8% pass✓ 1✗ 12▾

  Split decision: 12 FAIL · 3 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/7)✗BuffettFAIL (1/7)✗LynchFAIL (2/6)✓PiotroskiPASS (F-Score 3)✗DremanFAIL (2/10)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)✗TempletonFAIL (3/8)•SleepNEUTRAL (4/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (3/6)✗SchlossFAIL (2/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage9% pass✓ 1✗ 12▾

  10 of 11 flag BRK-A's debt & leverage — Buffett, Lynch, Dreman +7 more

  Debt/Equity & Interest Coverage

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Total Debt / Shareholders' Equity

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=10.4x, D/EBITDA=N/A

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)

  ✗AsnessTop 30% of eligible cross-section

  Current Assets / Current Liabilities

  ✗SchlossCurrent ratio >= 1.50x (app cutoff)
• Valuation models20% pass✓ 2✗ 8▾

  Models split on BRK-A at $889794.00 — fair values range $236459.60–$1150771.67

  Graham fair value$722911.37

  ✗Graham-23.1% margin vs $889794.00

  Buffett fair value$1150771.67

  ✓Buffett+22.7% margin vs $889794.00

  Lynch fair value$549063.41

  ✗Lynch-62.1% margin vs $889794.00

  Dreman fair value$874375.00

  ✗Dreman-1.8% margin vs $889794.00

  Munger fair value$259321.61

  ✗Munger-243.1% margin vs $889794.00

  Pabrai fair value$415815.44

  ✗Pabrai-114.0% margin vs $889794.00

  Akre fair value$1123984.77

  ✓Akre+20.8% margin vs $889794.00

  Marks fair value$509772.00

  ✗Marks-74.5% margin vs $889794.00

  Ackman fair value$236459.60

  ✗Ackman-276.3% margin vs $889794.00

  Templeton fair value$656805.00

  ✗Templeton-35.5% margin vs $889794.00
• Profitability27% pass✓ 11✗ 21▾

  11 of 15 flag BRK-A's profitability — Graham, Buffett, Lynch +8 more

  Net income / market capitalization+6.12%; #1390/6340 (top 21.9%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)21/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)27/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)10.6%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)14.3% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$67.0B

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)1.62

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.8%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  ROE10.1%

  ✗Lynch> 15%

  Net Income / Total Assets5.48%

  ✓PiotroskiROA > 0

  ROA Change YoY7.71% -> 5.48% (delta: -2.23%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=3.76%, ROA=5.48%

  ✗PiotroskiCFO/Assets > ROA

  Pre-Tax Income / Revenue24.3%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity10.1%

  ✗Dreman> 12%

  Margin of SafetyP/E=19.1x, P/B=1.8x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity13.4% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-1.8% (IV=$874375.00 vs Price=$889794.00)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency27/28 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue14.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity10.1%

  ✗Ackman>= 15%

  5-Year EPS CAGR11.8% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend11.9% (2023) -> 14.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 11.9% -> 14.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+10.12%; #1795/5226 (top 34.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0433; #2384/5884 (top 40.5%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR11.8% over 5 years

  ✓Neff7%-20% annualized

  Positive Diluted-EPS Years9/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Piotroski, Dreman, Pabrai +2 more object

  Free Cash Flow Proxy$67.0B

  ✓BuffettPositive and growing

  FCF Positive and Growing$22.8B

  ✓LynchPositive and growing

  Operating Cash Flow$46.0B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=3.76%, ROA=5.48%

  ✗PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)27.8x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=19.1x, FCF Yield=2.0%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive18/18 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap1.8%

  ✗Ackman>= 4%

  Price / FCF per Share51.1x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$22.8B

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+1.81%; #2281/4519 (top 50.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth50% pass✓ 6✗ 6▾

  4 of 8 pass — Graham, Lynch, Dreman +1 more object

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)1.62

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR11.8%

  ✓Lynch15-30% (Fast Grower); > 0% to pass

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency27/28 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth1.9%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR11.8% CAGR over 5 years

  ✓Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 11.9% -> 14.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR8.6%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR11.8% over 5 years

  ✓Neff7%-20% annualized