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Berkshire Hathaway Inc.

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Shares of Berkshire Hathaway have outperformed the industry in a year's time. Berkshire’s inorganic growth story remains impressive with strategic acquisitions. A strong cash position allows it to make earnings-accretive bolt-on acquisitions. Demand for utilities is expected to rise in the future and drive earnings growth. Continued insurance business growth also fuels increase in float. A sturdy capital level further adds an impetus to the company. The insurance business generates maximum return on equity but its exposure to catastrophe loss remains a concern. Huge capital expenses due to railroad operations also emerge as headwinds. Capital expenditure is estimated at $10 billion in 2018. Nonetheless, the stock has witnessed its 2018 and 2019 estimates move up in the last 60 days.

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