Morningstar

Berkshire Hathaway: 5 Key Takeaways From the 2026 Annual Meeting

We think Berkshire Hathaway stock is moderately undervalued.

The logo for Berkshire Hathaway Inc. is displayed at a trading post on the floor of the New York Stock Exchange.
Richard Drew via AP
Securities in This Article
Berkshire Hathaway Inc Class B
(BRK.B)

Key Morningstar Metrics for Berkshire Hathaway

  • Fair Value Estimate
    : $510
  • Morningstar Rating
    : ★★★★
  • Morningstar Economic Moat Rating
    : Narrow
  • Morningstar Uncertainty Rating
    : Low

New CEO Greg Abel hosted his first annual Berkshire Hathaway BRK.B meeting on May 2 and reiterated his commitment to Warren Buffett’s principles and the company’s culture. His primary goal seems to be maintaining the status quo with a few adjustments around the edges.

Why it matters: During the question-and-answer segments of the annual meeting, Abel was joined by Ajit Jain, head of Berkshire’s insurance operations, Katie Farmer, president and CEO of BNSF Railway, and Adam Johnson, president of the consumer products, service, and retailing businesses. Former CEO Warren Buffett also had his say in two lengthy asides. Summing up our key takeaways, we highlight the following:

  • Abel reiterated his commitment to Buffett’s principles and Berkshire’s culture.
  • Abel’s primary goal seems to be maintaining the status quo with a few adjustments around the edges.
  • Berkshire’s expanding cash hoard will be a bigger topic of conversation following the change of management.
  • Abel will be scrutinized far more than Buffett ever was as an operator and investor.
  • Berkshire’s shares are modestly undervalued in a slightly undervalued market based on our Morningstar US Market Fair Value gauge.

The bottom line: Overall, we think the first annual meeting without Buffett at the helm was a calm affair filled with confidence on the part of Berkshire’s managers that they have what it takes to move the company forward.

  • Given the decline in the shares this year—5.9% year to date—narrow-moat Berkshire is modestly undervalued relative to our fair value estimate for a company with a Low Morningstar Uncertainty Rating.
  • At their May 1 closing price, the company’s shares were trading at a 7% discount to our $765,000 (Class A) and $510 (Class B) fair value estimates. This infers a high-single-digit gain for investors, should the shares revert to our fair value estimates.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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