On Wednesday, February 1st, Evan Bernstein pitched Berkshire Hathaway (BRK.B) to the SMIF class. He explained some of the key catalysts for the company including the steepening of the yield curve, deregulation, a favorable economic environment and a possible shift in demand from traditional to renewable energy. In addition, he highlighted that Berkshire Hathaway has 85 billion dollars of dry powder to use for future investment (growth) opportunities and have a continued downward trend in expenses which is favorable for their future performance. Moreover, the company has been continuously investing in PP&E, CapEx is growing and they are acquiring new businesses.
Lastly, Evan liked that 70% of Berkshire Hathaway’s portfolio is in Insurance because he believes this area has great growth opportunities in the future due float generation and the overall health of the economy. Therefore, despite the risk of management changes and autonomous vehicles, Evan felt like it was a good time to invest. The motion passed 30:0.