Could it be valuation? Berkshire Hathaway is trading with a forward price-to-earnings (P/E) ratio of 23.5. A stock is considered a value when it has a much lower P/E ratio, usually under 15.
Apple stock promptly soared 10.5% the next day. Berkshire Hathaway's share price increased by less than 1%, a ho-hum move despite Apple's great quarterly update.
Learn more about whether Berkshire Hathaway Inc. or Block, Inc. is a better investment based on AAII's A+ Investor grades, which compare both companies' key financial metrics.