Fruit of the Loom, a Berkshire Hathaway subsidiary, reportedly faces an investigation in Texas. Duracell has committed $56 million to a new Global Innovation Center. The developments could bring legal risks and investment needs that may influence Berkshire's capital allocation decisions.
Investors are also assessing former CEO Warren Buffett's decision to sell a significant portion of Berkshire's Apple stake. One analysis estimates the sale may have cost the company up to $112 billion in potential gains.
The developments come as investors adjust to CEO Greg Abel's leadership. Together, new challenges at Berkshire's operating companies and debate over past investment decisions have renewed attention on the conglomerate's valuation and future returns. An analysis using an Excess Returns model suggested Berkshire's intrinsic value could be substantially above its current share price.