Berkshire Hathaway Inc., the conglomerate built by billionaire investor Warren Buffett, could be overvalued, Barron’s reported on Sunday.
Barron’s estimates that Berkshire is worth about $130,000 a share, about 10 percent below the current level.
Because of its high price relative to its book value and earnings, Berkshire shares could be “dead money for at least a year,” the investor weekly said.
Barron’s said American International Group, Wells Fargo, and American Express may be better values in the financial sector.
Wall Street is waiting for Buffett’s next move, and insurance broker Marsh & McLennan might appeal to him, Barron’s said.
Berkshire stock closed on Friday at $143,000, up 38 percent from its 12-month low of $103,800 hit on February 27.