Key Morningstar metrics for Berkshire Hathaway

  • Fair Value Estimate: $510
  • Morningstar Rating: ★★★
  • Morningstar Economic Moat Rating: Narrow
  • Morningstar Uncertainty Rating: Low

Reports emerged on Oct. 14, that since the start of the third quarter Berkshire Hathaway BRK.B has acquired as much as $930 million worth of stock in Bending Spoons, an Italian-based quasi-private equity firm that acquires and restructures technology products, software applications, and brands.

Why it matters: Since Greg Abel took over in January, Berkshire has made an additional $25 billion-$30 billion investment in Alphabet and a nearly $1 billion investment in Bending Spoons, while also acquiring homebuilder Taylor Morrison for $8.5 billion and adding more than $1.8 billion to its stake in homebuilder Lennar. These are about as disparate a set of investments as can be found.

  • Bending Spoons has reported that Berkshire recently purchased another $330 million of its common stock in a private placement.
  • This purchase, along with the $600 million that Berkshire invested in the firm during its initial public offering in July 2026, brings the insurer’s cost basis to $930 million and gives it a 4% stake in the firm.
  • Berkshire is sitting on a nearly 80% gain on its investment in Bending Spoon as of Oct. 15, after the shares rose in the days following the announcement of Berkshire’s additional stake.

The bottom line: While some may question this investment (as well as the substantial investment in Alphabet), noting Berkshire’s historical preference for value investments like Taylor Morrison and Lennar, we think it is a sign that the firm is finally moving out of its comfort zone to find places to put capital to work, which should be viewed as a positive for long-term investors.

  • Berkshire’s stock investment portfolio was worth close to $345 billion at the end of the second quarter and remains a meaningful contributor to the overall value of the firm.
  • We expect to keep our $765,000 ($510) per Class A (B) share fair value estimate for narrow-moat Berkshire Hathaway in place following this news. We view the company’s shares as fairly valued to slightly overvalued right now.