Berkshire Hathaway Stock Forecast - Naive Prediction

BRK-B Stock  USD 453.20  3.86  0.86%   
The Naive Prediction forecasted value of Berkshire Hathaway on the next trading day is expected to be 446.88 with a mean absolute deviation of 4.08 and the sum of the absolute errors of 248.85. Berkshire Stock Forecast is based on your current time horizon. Investors can use this forecasting interface to forecast Berkshire Hathaway stock prices and determine the direction of Berkshire Hathaway's future trends based on various well-known forecasting models. We recommend always using this module together with an analysis of Berkshire Hathaway's historical fundamentals, such as revenue growth or operating cash flow patterns.
  
The current year's Inventory Turnover is expected to grow to 11.41, whereas Payables Turnover is forecasted to decline to 3.58. . The current year's Common Stock Shares Outstanding is expected to grow to about 2.4 B, whereas Net Loss is projected to grow to (24.9 B).

Berkshire Hathaway Cash Forecast

Forecasting cash, or other financial indicators, requires analysts to apply different statistical methods, techniques, and algorithms to find hidden patterns within the Berkshire Hathaway's financial statements to predict how it will affect future prices.
 
Cash  
First Reported
1990-03-31
Previous Quarter
42.3 B
Current Value
37.2 B
Quarterly Volatility
21.7 B
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
A naive forecasting model for Berkshire Hathaway is a special case of the moving average forecasting where the number of periods used for smoothing is one. Therefore, the forecast of Berkshire Hathaway value for a given trading day is simply the observed value for the previous period. Due to the simplistic nature of the naive forecasting model, it can only be used to forecast up to one period.

Berkshire Hathaway Naive Prediction Price Forecast For the 22nd of December

Given 90 days horizon, the Naive Prediction forecasted value of Berkshire Hathaway on the next trading day is expected to be 446.88 with a mean absolute deviation of 4.08, mean absolute percentage error of 28.44, and the sum of the absolute errors of 248.85.
Please note that although there have been many attempts to predict Berkshire Stock prices using its time series forecasting, we generally do not recommend using it to place bets in the real market. The most commonly used models for forecasting predictions are the autoregressive models, which specify that Berkshire Hathaway's next future price depends linearly on its previous prices and some stochastic term (i.e., imperfectly predictable multiplier).

Berkshire Hathaway Stock Forecast Pattern

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Berkshire Hathaway Forecasted Value

In the context of forecasting Berkshire Hathaway's Stock value on the next trading day, we examine the predictive performance of the model to find good statistically significant boundaries of downside and upside scenarios. Berkshire Hathaway's downside and upside margins for the forecasting period are 445.82 and 447.93, respectively. We have considered Berkshire Hathaway's daily market price to evaluate the above model's predictive performance. Remember, however, there is no scientific proof or empirical evidence that traditional linear or nonlinear forecasting models outperform artificial intelligence and frequency domain models to provide accurate forecasts consistently.
Market Value
453.20
445.82
Downside
446.88
Expected Value
447.93
Upside

Model Predictive Factors

The below table displays some essential indicators generated by the model showing the Naive Prediction forecasting method's relative quality and the estimations of the prediction error of Berkshire Hathaway stock data series using in forecasting. Note that when a statistical model is used to represent Berkshire Hathaway stock, the representation will rarely be exact; so some information will be lost using the model to explain the process. AIC estimates the relative amount of information lost by a given model: the less information a model loses, the higher its quality.
AICAkaike Information Criteria121.4582
BiasArithmetic mean of the errors None
MADMean absolute deviation4.0795
MAPEMean absolute percentage error0.0089
SAESum of the absolute errors248.8507
This model is not at all useful as a medium-long range forecasting tool of Berkshire Hathaway. This model is simplistic and is included partly for completeness and partly because of its simplicity. It is unlikely that you'll want to use this model directly to predict Berkshire Hathaway. Instead, consider using either the moving average model or the more general weighted moving average model with a higher (i.e., greater than 1) number of periods, and possibly a different set of weights.

Predictive Modules for Berkshire Hathaway

There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Berkshire Hathaway. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Hype
Prediction
LowEstimatedHigh
452.14453.20454.26
Details
Intrinsic
Valuation
LowRealHigh
423.13424.19498.52
Details
Bollinger
Band Projection (param)
LowMiddleHigh
444.20465.99487.78
Details
4 Analysts
Consensus
LowTargetHigh
355.30390.44433.39
Details

Other Forecasting Options for Berkshire Hathaway

For every potential investor in Berkshire, whether a beginner or expert, Berkshire Hathaway's price movement is the inherent factor that sparks whether it is viable to invest in it or hold it better. Berkshire Stock price charts are filled with many 'noises.' These noises can hugely alter the decision one can make regarding investing in Berkshire. Basic forecasting techniques help filter out the noise by identifying Berkshire Hathaway's price trends.

Berkshire Hathaway Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Berkshire Hathaway stock to make a market-neutral strategy. Peer analysis of Berkshire Hathaway could also be used in its relative valuation, which is a method of valuing Berkshire Hathaway by comparing valuation metrics with similar companies.
 Risk & Return  Correlation

Berkshire Hathaway Technical and Predictive Analytics

The stock market is financially volatile. Despite the volatility, there exist limitless possibilities of gaining profits and building passive income portfolios. With the complexity of Berkshire Hathaway's price movements, a comprehensive understanding of forecasting methods that an investor can rely on to make the right move is invaluable. These methods predict trends that assist an investor in predicting the movement of Berkshire Hathaway's current price.

Berkshire Hathaway Market Strength Events

Market strength indicators help investors to evaluate how Berkshire Hathaway stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Berkshire Hathaway shares will generate the highest return on investment. By undertsting and applying Berkshire Hathaway stock market strength indicators, traders can identify Berkshire Hathaway entry and exit signals to maximize returns.

Berkshire Hathaway Risk Indicators

The analysis of Berkshire Hathaway's basic risk indicators is one of the essential steps in accurately forecasting its future price. The process involves identifying the amount of risk involved in Berkshire Hathaway's investment and either accepting that risk or mitigating it. Along with some essential techniques for forecasting berkshire stock prices, we also provide a set of basic risk indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Other Information on Investing in Berkshire Stock

Berkshire Hathaway financial ratios help investors to determine whether Berkshire Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Berkshire with respect to the benefits of owning Berkshire Hathaway security.