The analysis notes that while the stock prices of Berkshire Hathaway and Micron both appear cheap on the surface, it is more optimistic about the sustainability of Berkshire’s earnings.

An analysis piece on Yahoo Finance noted that the stock prices of Berkshire Hathaway and Micron Technology appear cheap on the surface, but the article is more optimistic about the sustainability of Berkshire’s earnings.The analysis noted that Berkshire Hathaway trades at a price-to-earnings ratio of about 15 times, with first-quarter operating income rising 18% year-over-year to $11.3 billion, and the company holds approximately $397 billion in cash and short-term Treasury bills. Micron Micron Technology’s P/E ratio is approximately 20 times, and its earnings are surging—with earnings per share (EPS) of $24.67 in the third quarter of fiscal year 2026 and a projected $31 in the fourth quarter. However, its earnings are cyclical, and the company posted a net loss of $5.8 billion in fiscal year 2023.The article argues that the market’s valuation of Micron at a 20x P/E ratio is based on the assumption that its earnings are near a cyclical peak, whereas Berkshire’s earnings are more diversified and sustainable.