Report
Greggory Warren, CFA
EUR 101.80 For Business Accounts Only

Berkshire Hathaway's strong balance sheet and management structure give it an edge in acquisitions.

When wide-moat-rated Berkshire Hathaway announced on July 7 that it had bid for the bankrupt Energy Future Holdings' 80% equity stake in Oncor Electric Delivery, we noted that the insurer's utilities and energy division would likely face less regulatory issues than past bidders but that the process would still be challenging, as the bid needs approval from both Texas regulators and a bankruptcy court judge. We also noted the possibility of another bid cropping up to challenge Berkshire's offer.
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Underlying
Berkshire Hathaway Inc. Class B

Berkshire Hathaway is a holding company. Co.'s subsidiaries are engaged in several business activities which include: underwriting private passenger automobile insurance; operation of a railroad system in North America; regulated electric and gas utility; manufacturing of products including industrial, consumer and building products; wholesale distribution of groceries and non-food items; provider of services including aviation pilot training, electronic components distribution and retailing businesses, including automotive dealerships; and manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Greggory Warren, CFA

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