Why I Wouldn't Buy Berkshire Hathaway's Portfolio (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

• Since my last 'Sell' rating reflecting my view of Berkshire's underperformance vs the S&P 500, Berkshire has underperformed the S&P 500 by 6.49%.
• I am downgrading my rating to a 'Strong Sell' as I am more confident of further underperformance ahead.
• Despite trading at the same valuation as the S&P 500, I believe most of Berkshire Hathaway's business has an underwhelming earnings growth past and future outlook relative to the S&P500.
• Berkshire is also priced the same as the S&P500, but with a worse growth expectation, indicating what I believe is a mispricing and overvaluation of Berkshire's stock.
• The technicals also paint a bearish outlook, suggesting Berkshire would lag the SPY for multiple quarters and years ahead.

Read the full article here.