Should you buy Berkshire Hathaway Inc. New (BRK-B)?
Updated
Berkshire Hathaway screens attractively valued at a PEG of 0.19 with strong margins and three beats in the last four quarters, but the current price of $487 has exceeded the analyst consensus target of $481.18, leaving the risk/reward unfavorable and the setup better suited to patience than to adding exposure.
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Engine methodology range
Range computation requires sufficient peer-comparable data; available for tickers with peer_count ≥3.
What the engine is tracking
| Pillar | Expectation | Trend |
|---|---|---|
At a PEG ratio of 0.19 and a forward multiple of 22.7x, the stock screens attractively valued relative to its earnings growth profile, with strong margins of 19% and a Piotroski financial strength score of 7/9. Valuation breakdown | The multiple holds or expands modestly as earnings growth narrows the PEG discount over the next 12 months. | →Stable |
| CounterNo identifiable competitive moat limits the durability of the margin advantage; analyst coverage is light (only three analysts), which dampens the reliability of the consensus target and the PEG-based valuation signal. | ||
The current price of $487.00 has exceeded the analyst consensus target of $481.18, meaning the stock is trading above the level that fully reflects near-term expectations and the risk/reward geometry is now unfavorable. Bear case | A pullback below the $481.18 analyst target would restore a positive risk/reward setup and create a more compelling entry for new capital. | →Stable |
| CounterIf earnings estimates are revised upward, the analyst target will adjust accordingly and the current price may prove fair — at a PEG of 0.19 the valuation remains undemanding even at these levels, and a target breach does not preclude further appreciation if fundamentals improve. | ||
The company beat earnings estimates in the most recent quarter (April 2026, +4.17%) and in the two oldest of the last four quarters, with one miss in between in February 2026 (-8.48%), showing a generally constructive execution pattern against consensus expectations. Earnings | Earnings surprises remain positive over the next two quarters, reinforcing the fundamental narrative. | →Stable |
| CounterThe February 2026 miss of -8.48% shows that the beat pattern is not unbroken; with light analyst coverage dampening the consensus signal, a second near-term miss could be disproportionately negative for sentiment. | ||
At a PEG ratio of 0.19 and a forward multiple of 22.7x, the stock screens attractively valued relative to its earnings growth profile, with strong margins of 19% and a Piotroski financial strength score of 7/9.
→Stable- Expectation
- The multiple holds or expands modestly as earnings growth narrows the PEG discount over the next 12 months.
CounterNo identifiable competitive moat limits the durability of the margin advantage; analyst coverage is light (only three analysts), which dampens the reliability of the consensus target and the PEG-based valuation signal.
The current price of $487.00 has exceeded the analyst consensus target of $481.18, meaning the stock is trading above the level that fully reflects near-term expectations and the risk/reward geometry is now unfavorable.
→Stable- Expectation
- A pullback below the $481.18 analyst target would restore a positive risk/reward setup and create a more compelling entry for new capital.
CounterIf earnings estimates are revised upward, the analyst target will adjust accordingly and the current price may prove fair — at a PEG of 0.19 the valuation remains undemanding even at these levels, and a target breach does not preclude further appreciation if fundamentals improve.
The company beat earnings estimates in the most recent quarter (April 2026, +4.17%) and in the two oldest of the last four quarters, with one miss in between in February 2026 (-8.48%), showing a generally constructive execution pattern against consensus expectations.
→Stable- Expectation
- Earnings surprises remain positive over the next two quarters, reinforcing the fundamental narrative.
CounterThe February 2026 miss of -8.48% shows that the beat pattern is not unbroken; with light analyst coverage dampening the consensus signal, a second near-term miss could be disproportionately negative for sentiment.
▸ Show 2 more pillars▾ Show fewer
Price is below the 200-day moving average but volume accumulation is rising and the MACD is improving; the long-term moving average is still trending up at +0.1% per month, indicating this may be a pullback within a broader uptrend rather than confirmed weakness.
→Stable- Expectation
- Price reclaims the 200-day moving average and the momentum score sustains above the 5.5 threshold as the recovery pattern consolidates.
CounterThe death cross remains in effect and the stock is still below its long-term average; the MACD improvement and rising OBV are early signals that have not yet been confirmed by price reclaiming a key technical level.
Insiders have been net buyers over the past 90 days, with two purchase transactions and zero sales, a constructive signal that management has confidence in the current price level.
→Stable- Expectation
- Insider buying activity continues or at minimum does not reverse, maintaining the net-positive signal through the next 90-day window.
CounterThe net share count of +536 is modest in absolute terms and the dollar value of the transactions is unavailable, limiting the ability to assess materiality; a small token purchase carries less informational weight than a large-dollar transaction.
→ Full pillar scorecard with all 5 pillars + per-dimension breakdown
When this thesis breaks
Falsifiable conditions per pillar — any one trip warrants review independent of price action. Engine-derived; not personalized advice.
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1The current price of $487.00 has exceeded the analyst consensus target of $481.18, meaning the stock is trading above the level that fully reflects near-term expectations and the risk/reward geometry is now unfavorable.
Trip ifPrice falls below $481.18 for 2 consecutive weeks.
- P2At a PEG ratio of 0.19 and a forward multiple of 22.7x, the stock screens attractively valued relative to its earnings growth profile, with strong margins of 19% and a Piotroski financial strength score of 7/9.
Trip ifPEG ratio rises above 1.0 for 2 consecutive assessment periods.
- P3The company beat earnings estimates in the most recent quarter (April 2026, +4.17%) and in the two oldest of the last four quarters, with one miss in between in February 2026 (-8.48%), showing a generally constructive execution pattern against consensus expectations.
Trip ifEPS surprise falls below 0% for 2 consecutive quarters.
- P4Price is below the 200-day moving average but volume accumulation is rising and the MACD is improving; the long-term moving average is still trending up at +0.1% per month, indicating this may be a pullback within a broader uptrend rather than confirmed weakness.
Trip ifMomentum score falls below 5.5 for 2 consecutive assessment periods.
- P5Insiders have been net buyers over the past 90 days, with two purchase transactions and zero sales, a constructive signal that management has confidence in the current price level.
Trip ifNet insider share purchases fall below 0 for 2 consecutive 90-day periods.
How the engine reached this verdict
TrendMatrix's engine output for Berkshire Hathaway Inc. New (BRK-B) is HOLD_IF_HOLDING with medium conviction, score 5.9/10 at $493.32. None of the engine's positive-conviction paths (C-quality, D-momentum) cleared their gates — the F-path HOLD reflects balanced signals rather than directional conviction.
On the bull side: Strong earnings beat streak (3/4); Attractive valuation. On the bear side: Analyst target reached - limited upside remaining; Near 52-week high (4.3% away). Active engine warnings: V8: Target reached (-10.6% upside), V9 Gate Failed: ASYMMETRY:-2.0=NEGATIVE.
The engine is not issuing fresh-money entry targets at the current verdict. The technical entry zone is around — with a technical stop near $480.49 for existing positions. Asymmetric R:R is -0.34, below the threshold (≥2.0) at which the engine would actively flag fresh capital. The engine's sizing output: 0.5% of portfolio at this asymmetry level (none-conviction tier).
HOLD flips toward BUY_WAIT if reward-to-risk (NEGATIVE) clears AND a co-confirming gate triggers. HOLD flips toward SELL if any of the currently-passing gates drop below threshold OR three or more dimensions fall below 4 simultaneously.
For the full 10-dimension breakdown + V9 gate detail: Why TrendMatrix rates BRK-B — 10-dimension breakdown →
Bull case
- ▸Strong earnings beat streak (3/4)
- ▸Attractive valuation
Bear case
- ▸Analyst target reached - limited upside remaining
- ▸Near 52-week high (4.3% away)