Morningstar Says Berkshire Hathaway Stock is Undervalued

Warren Buffett recently turned eighty-six years old. While he's announced no plans to retire as the leader of Berkshire Hathaway  (BRK.B) - Get Report , the company will survive his departure, according to Morningstar. The credit rating and research company suggests that Berkshire is well positioned for future success, although things will be different. Morningstar expects that Berkshire will eventually return more cash to its shareholders, and notes that during the past three years, Berkshire has generated an average of $16.3 billion in free cash flow.  'As time goes on and size becomes a bigger problem for the firm finding good deals that actually sort of are additive to the overall business,' explained Greggory Warren, an analyst at Morningstar. The firm also believes Greg Abel, who runs the company's energy business, would be a strong candidate. TheStreet's Rhonda Schaffler has details from Wall Street.