What is Berkshire Hathaway Earnings Yield (Joel Greenblatt) %?
Berkshire Hathaway's Enterprise Value for the quarter that ended in Jun. 2024 was $964,248 Mil. Berkshire Hathaway's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 was $88,904 Mil. Berkshire Hathaway's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2024 was 9.19%.
The historical rank and industry rank for Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
BRK.B' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -3.52 Med: 8.48 Max: 23.09
Current: 8.49
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Berkshire Hathaway was 23.09%. The lowest was -3.52%. And the median was 8.48%.
BRK.B's Earnings Yield (Joel Greenblatt) % is ranked better than
55.98% of 493 companies
in the Insurance industry
Industry Median: 6.83 vs BRK.B: 8.49
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Berkshire Hathaway's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2024 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Berkshire Hathaway Earnings Yield (Joel Greenblatt) % Historical Data
The historical data trend for Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Berkshire Hathaway Earnings Yield (Joel Greenblatt) % Chart
| Berkshire Hathaway Annual Data | ||||||||||||||||||||
| Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
| Earnings Yield (Joel Greenblatt) % | Get a 7-Day Free Trial | 17.92 | 9.74 | 16.56 | -3.35 | 14.18 | ||||||||||||||
| Berkshire Hathaway Quarterly Data | ||||||||||||||||||||
| Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
| Earnings Yield (Joel Greenblatt) % | Get a 7-Day Free Trial | 13.48 | 11.49 | 14.18 | 9.57 | 9.19 | ||||||||||||||
Competitive Comparison of Berkshire Hathaway's Earnings Yield (Joel Greenblatt) %
For the Insurance - Diversified subindustry, Berkshire Hathaway's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % falls into.
Berkshire Hathaway Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Berkshire Hathaways Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as
| Earnings Yield (Joel Greenblatt) | = | EBIT | / | Enterprise Value |
| = | 125169 | / | 870923.3852 | |
| = | 14.37 % |
Berkshire Hathaway's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $88,904 Mil.
Berkshire Hathaway(NYSE:BRK.B) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.
Berkshire Hathaway Earnings Yield (Joel Greenblatt) % Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Berkshire Hathaway Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Financial Services » Insurance » Berkshire Hathaway Inc (NYSE:BRK.B) » Definitions » Earnings Yield (Joel Greenblatt) %
Comparable Companies
AIG ACGL EQH ORI ESGR FIHL GSHD IGIC SUND FGF XTER:ALV XPAR:CS XSWX:ZURN MIL:G TSX:SLF OHEL:SAMPO XTER:TLX XSWX:SLHN LSE:AV. OCSE:TRYG
Traded in Other Exchanges
BRK.A:USA BRK_B:Peru BRKB:Mexico 1BRK:Italy BRYNd:UK 0R37:UK BRHF:Germany BRYN:Germany BRYN:Germany BRYN:Germany BRYN:Germany BRK:Canada BERK34:Brazil BRYN:Bulgaria BRKB:Austria BRKB:Argentina
Address
3555 Farnam Street, Omaha, NE, USA, 68131
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
Executives
| Ajit Jain | director, officer: Vice Chairman | 100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902 |
| Murphy Thomas S Jr | director | C/O CRESTVIEW ADVISORS, 667 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10021 |
| Warren E Buffett | director, 10 percent owner, officer: Chairman and CEO | 3555 FARNAM ST, STE 1440, OMAHA NE 68131 |
| Charlotte Guyman | director | 3324 78TH PL. N.E., MEDINA WA 98004 |
| Susan A. Buffett | director | 808 CONAGRA DRIVE, OMAHA NE 68102 |
| Christopher C Davis | director | C/O GRAHAM HOLDINGS COMPANY, 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209 |
| Ronald L Olson | director | EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770 |
| Kenneth I Chenault | director | C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138 |
| Gregory Abel | director, officer: Vice Chairman | 666 GRAND AVE., STE.500, DES MOINES IA 50309 |
| Meryl B Witmer | director | 655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017 |
| Thomas S Murphy | director | C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010 |
| 10 percent owner | 2365 CARILLON POINT, KIRKLAND WA 98033 | |
| Stephen B Burke | director | 41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023 |
| Susan L Decker | director | C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089 |
| Gates William H Iii | director | 2365 CARILLON POINT, KIRKLAND WA 98033 |
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