Berkshire Hathaway Stock Alpha and Beta Analysis
| BRK-B Stock | USD 514.60 10.35 2.05% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Berkshire Hathaway. It also helps investors analyze the systematic and unsystematic risks associated with investing in Berkshire Hathaway over a specified time horizon. Remember, high Berkshire Hathaway's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Berkshire Hathaway's market risk premium analysis include:
Beta 0.6 | Alpha 0.2 | Risk 1.17 | Sharpe Ratio 0.18 | Expected Return 0.21 |
Berkshire Hathaway Quarterly Cash And Equivalents |
|
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Berkshire |
Berkshire Hathaway Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Berkshire Hathaway market risk premium is the additional return an investor will receive from holding Berkshire Hathaway long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Berkshire Hathaway. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Berkshire Hathaway's performance over market.| α | 0.20 | β | 0.60 |
Berkshire Hathaway expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Berkshire Hathaway's Buy-and-hold return. Our buy-and-hold chart shows how Berkshire Hathaway performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Berkshire Hathaway Market Price Analysis
Market price analysis indicators help investors to evaluate how Berkshire Hathaway stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Berkshire Hathaway shares will generate the highest return on investment. By understating and applying Berkshire Hathaway stock market price indicators, traders can identify Berkshire Hathaway position entry and exit signals to maximize returns.
Berkshire Hathaway Return and Market Media
The median price of Berkshire Hathaway for the period between Sun, Dec 15, 2024 and Sat, Mar 15, 2025 is 468.67 with a coefficient of variation of 3.99. The daily time series for the period is distributed with a sample standard deviation of 18.81, arithmetic mean of 471.74, and mean deviation of 15.4. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Disposition of tradable shares by Guyman Charlotte of Berkshire Hathaway subject to Rule 16b-3 | 01/24/2025 |
2 | Wagokoro Seems To Use Debt Quite Sensibly | 02/14/2025 |
3 | Does Mr. Blue Have A Healthy Balance Sheet | 02/21/2025 |
4 | We Think Hubei Radio Television Information Network Has A Fair Chunk Of Debt | 03/06/2025 |
5 | We Think TDG Holding Is Taking Some Risk With Its Debt | 03/07/2025 |
6 | Is Shijiazhuang Tonhe Electronics TechnologiesLtd A Risky Investment | 03/10/2025 |
7 | Heres Why Yunnan Botanee Bio-Technology GroupLTD Can Manage Its Debt Responsibly | 03/11/2025 |
8 | Analyst Makes Case for McDonalds Amid Bill Gates New Stake | 03/12/2025 |
9 | Advantest Seems To Use Debt Rather Sparingly | 03/13/2025 |
About Berkshire Hathaway Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Berkshire or other stocks. Alpha measures the amount that position in Berkshire Hathaway has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2023 | 2024 | 2025 (projected) | Days Sales Outstanding | 38.76 | 36.51 | 34.68 | PTB Ratio | 1.38 | 1.51 | 2.2 |
Berkshire Hathaway Investors Sentiment
The influence of Berkshire Hathaway's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Berkshire. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Berkshire Hathaway's public news can be used to forecast risks associated with an investment in Berkshire. The trend in average sentiment can be used to explain how an investor holding Berkshire can time the market purely based on public headlines and social activities around Berkshire Hathaway. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Berkshire Hathaway's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Berkshire Hathaway's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Berkshire Hathaway's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Berkshire Hathaway.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Berkshire Hathaway in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Berkshire Hathaway's short interest history, or implied volatility extrapolated from Berkshire Hathaway options trading.
Build Portfolio with Berkshire Hathaway
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Other Information on Investing in Berkshire Stock
Berkshire Hathaway financial ratios help investors to determine whether Berkshire Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Berkshire with respect to the benefits of owning Berkshire Hathaway security.