This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buffett Watch: Berkshire Is a Bargain

Stocks in this article: BRK-A

Investors with a few hundred thousand dollars to spare who are hunting for a bargain in financial services stocks ought to buy a few shares of Berkshire Hathaway (BRK.A), according to a KBW report released Monday.

Analyst Cliff Gallant initiated the firm, headed by billionaire Warren Buffett, with an outperform rating and a target price of $107,000, 24% above its closing price of $86,210 on Friday. Despite fears that Berkshire's exposure to derivatives and a broader decline in its investments amid a global economic slump, Gallant believes Berkshire will come out ahead.

"Berkshire is a myriad collection of high-quality businesses, particularly in insurance and reinsurance, with attractive long-term growth prospects," Gallant writes. "Despite negative marks in its derivative portfolio, the recent global financial turmoil has left Berkshire standing tall as one of the world's few financially sound institutions."

Last quarter, Berkshire suffered its first loss in eight years, spooking investors who viewed the firm as a safe haven because of its massive cash reserves, record of safe investing and its managerial prowess. But no stone has been left unturned by the global financial meltdown, and many of the company's major investments had lost significant value, including Wells Fargo (WFC), US Bancorp (USB), Goldman Sachs (GS), General Electric (GE), ConocoPhillips (COP) and Dow Chemical (DOW).

Berkshire shares are down 29% over the past year, and 11% since the end of 2008. They have climbed 23% from a recent low of $70,050 reached in early March. The stock was trading up fractionally to $86,875 in recent trading.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs