Berkshire Hathaway Is Up 19% Quarter to Date: Here’s Why It’s Still Cheap

Don't look now, but after underperforming the stock market for the first half of 2020, Warren Buffett-led conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is up a whopping 19% so far in the third quarter.

And this stock's rebound may just be getting started. If you think you've missed the boat, consider this: Berkshire Hathaway is still 9% below its all-time highs, compared with the S&P 500, which is just 1.5% below its peak. Additionally, though from 1965 through 2019, Berkshire's compound annual growth rate was just over 20% -- much higher than the market's 10% average annual growth across the same period -- it has still underperformed the S&P 500 in both the past five- and 10-year periods, as high-flying growth stocks have overshadowed steady cash-generators like Berkshire.