01.06.2025

The Future of Berkshire Hathaway without Warren Buffett

Valuation of Berkshire Hathaway Stock in May 2025

In May 2025, experts and analysts intensively evaluated the Berkshire Hathaway stock, particularly in light of Warren Buffett’s upcoming departure at the end of the year. The assessments are particularly relevant for private investors and small investors, as Berkshire Hathaway is considered one of the largest and most influential companies in the world.

Current Valuation and Key Figures

  • Revenue Development: In the current reporting period, Berkshire Hathaway recorded a slight revenue decrease of -0.20% compared to the previous year. This shows no strong growth but also no dramatic decline.
  • EBIT Margin: The EBIT margin stands at 7.69%, indicating solid operational profitability.
  • Return on Equity (ROE): At 0.70%, this figure remains below the expectations of many investors.
  • Cash Flow Margin: The cash flow margin is 7.95%, indicating healthy liquidity.
  • Price-to-Sales Ratio (P/S): The P/S ratio is at a moderate 2.94.
  • Debt Ratio: The debt ratio stands at 43.60%, which is considered solid.
  • Technical Indicators: The Relative Strength Index (RSI) is at 37.91, in the neutral to slightly undervalued range. The stochastic indicator is at zero.

Expert Rating

The current rating of the stock from May/June 2025 is evaluated as “5 out of 8 points,” corresponding to a neutral to slightly positive assessment. Many analysts continue to view the company as stable – despite the upcoming leadership change.

Importance for Private Investors

For private investors, the stability of the company is an important factor. Berkshire Hathaway is known for its diversified investments across various sectors as well as its conservative financial policy. Even though revenue growth is currently stagnant and the return on equity is low, the company impresses with its robust balance sheet and high liquidity.

The question of the future without Warren Buffett occupies many investors: while some fear that performance may worsen, others trust the established management team and the longstanding strategy of the company.

Conclusion

The majority of experts continue to see Berkshire Hathaway as a solid investment – especially for investors with a long-term horizon. Short-term uncertainties exist due to the leadership change at the end of the year, as well as stagnant growth rates in certain areas. Nonetheless, the company remains attractive for many portfolios due to its diversification and financial strength.