Berkshire Hathaway Analysis: Has Berkshire Hathaway beaten the market? What are its factor loadings?

Warren Buffett and Berkshire Hathaway are often seen as the gold standard of value investing. The insights of Buffett’s right hand man – Charlie Munger – have been immortalized in “Poor Charlie’s Almanack”

Berkshire Hathaway’s stock has indeed generated higher (or less negative) returns than the S&P500 and the NASDAQ composite throughout 2022. This suggests solid stock returns, at least on a relative basis. But, this begs the question of whether this is genuine out performance, or merely reflects beta. It also raises the question of Berkshire Hathaway’s ‘factor’ loadings.

Let’s explore this further. But, we must note that past performance need not imply future performance. And all investment decisions should be prospective in nature.

Find out more here. This document outlines BRK's historical performance. It also discusses BRK's alpha and factork loadings over time.