Berkshire Hathaway is well-positioned to profit from a surge in large US corporate bankruptcies. With $382 billion in cash reserves, the company can make strategic acquisitions.
Warren Buffett’s firm has a low price-to-earnings ratio (22) and an attractive valuation compared to its historical average. Analysts expect a 590 price target in 12-18 months, representing an 18% upside. However, leadership changes could impact decision-making quality as Warren Buffett retires. Despite this risk, the company’s cash reserves provide a margin of safety, supporting double-digit growth potential.
Source: https://seekingalpha.com/article/4853613-berkshire-hathaway-ready-to-profit-from-rising-bankruptcies