BRK.B: Coverage Initiated at ‘Price Below Value’ With High Confidence

Runchey Research has initiated coverage on Berkshire Hathaway (BRK.B) with a “Price Below Value” classification at HIGH confidence. Our 6-lens committee analysis and 9-market prediction ensemble suggest the current price embeds a governance transition discount and PacifiCorp risk premium that appear disproportionate to the probability-weighted outcomes.

Why We Initiated Coverage

Berkshire Hathaway presents a rare combination: record operating earnings, a widening insurance moat (GEICO combined ratio sustained below 80% for 7 consecutive quarters), and a $381.6B cash position — all trading at what appears to be a meaningful discount to fundamental value following Warren Buffett's retirement announcement. The stock declined 11.5% on the succession news despite the underlying business delivering its strongest results in history.

Our 6-lens analysis assessed 11 signals across the Moat Mapper, Stress Scanner, Gravy Gauge, Myth Meter, Insider Investigator, and Black Swan Beacon lenses, covering the post-Buffett governance transition, PacifiCorp wildfire exposure, insurance float durability, and capital deployment trajectory.