1 Reason Berkshire's Earnings Don't Matter
The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics across the investing world.
Warren Buffett's Berkshire Hathaway is a sprawling conglomerate. But at its core, it's an insurance company. Because of this, its earnings can be quite misleading. Like with banks, the balance sheet plays a much bigger role. Anand shares an example Buffett himself gave on why Berkshire's earnings can't be taken at face value.
To read about a small company I believe Buffett would be interested in if he could still invest in small companies, check out our free report: "The Stocks Only the Smartest Investors Are Buying." I invite you to take a free copy. Just click here.
At the time this article was published Anand Chokkavelu, CFA, owns shares of Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway.Motley Fool newsletter services recommendBerkshire Hathaway. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.