Berkshire Hathaway Today Won't Make You Rich, But It Will Keep You Rich (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• With record high cash levels, the stakes are higher than ever but we don't know much about the upcoming CEO Greg Abel's investing skills.
• The insurance business led by Ajit Jain is a gem for Berkshire. I expect it to continue outperforming its peers by a large margin.
• The outlook for Berkshire's non-operating subsidiaries in Manufacturing, Services and Railroad Freight is uninspiring. Only Berkshire Energy has some positive growth catalysts ahead driven by higher electric utility capex spends.
• Berkshire stock's valuations are at a premium. BRK may be due for a mean reversion move down vs the S&P500.
• In the new era, Berkshire may be eyeing needle-moving investments in insurance and banks and other quality franchises in international markets.

Read the full article here.