Berkshire Hathaway stock slipped about 0.8% today, a modest pullback for a company often treated as the market’s ultimate safety net. The move came as investors digested a powerful earnings headline. Quarterly net income excluding extra items landed at about US$25.7b on revenue of roughly US$101.8b, leaving the past 12 months with a trailing net margin a little above 22%. For a business built on insurance float, rail, utilities and a large equity portfolio, that profitability is the real story that sits behind the muted one day share price reaction.

Is Berkshire Hathaway trading at a genuine discount, or is the lower P/E simply reflecting slower growth expectations? Compare the stock’s current valuation drivers side by side in our