Berkshire Hathaway Inc. stock heads into Friday’s post-Christmas session with a rare combination of “big picture” catalysts: a historic CEO handoff scheduled for January 1, 2026, a record cash-and-Treasury-bills war chest, and a portfolio that continues to shift away from Apple even as Berkshire initiates a new stake in Alphabet. With U.S. equities returning to a full trading day on Dec. 26 after the holiday closure, investors watching BRK.B and BRK.A are likely to focus less on short-term technical signals and more on what Berkshire’s balance sheet and leadership reshuffle say about 2026. [1]
Where Berkshire stock left off before the holiday pause
Berkshire Class B (BRK.B) last closed at $500.51 on Wednesday, Dec. 24 (the early-close session), while Class A (BRK.A) ended at $750,763.34. With U.S. exchanges closed on Christmas Day and reopening for a normal session on Friday, the Dec. 26 open effectively becomes the market’s first real read on sentiment after investors digested late-December Berkshire headlines. [2]
A quick reminder for newer Berkshire investors: the company notes that Class B per-share figures are 1/1,500th of Class A in its reporting framework, which is why most “per share” metrics look dramatically different across the two tickers even though they represent the same underlying business. [3]
The dominant story: Greg Abel becomes CEO on Jan. 1, 2026
The most consequential “overhang / catalyst” into year-end isn’t an earnings print—it’s governance.
In a Dec. 8, 2025 announcement, Berkshire said Gregory E. Abel will assume the role of President and CEO of Berkshire Hathaway on January 1, 2026, while keeping direct oversight of major non-insurance operations (including BNSF, Berkshire Hathaway Energy, Pilot, and McLane) as the company formalizes its next-era operating structure. [4]
The same release outlined additional moves that matter to investors because Berkshire is, in practice, a “people + process” conglomerate:
- Nancy L. Pierce was appointed CEO of GEICO, effective immediately. [5]
- Todd A. Combs will conclude his tenure at Berkshire and join JPMorgan Chase, ending a chapter that blended investing responsibilities with operating leadership at GEICO. [6]
- Marc D. Hamburg is set to retire as CFO on June 1, 2027, with Charles C. Chang named as successor CFO effective June 1, 2026 (with an overlap period). [7]
- Berkshire also created/filled a new in-house legal leadership role, naming Michael J. O’Sullivan as Senior Vice President and General Counsel effective Jan. 1, 2026. [8]
For the Dec. 26 session specifically, the market’s near-term question is less “what changes operationally on Friday?” and more “how do investors price Berkshire in the final days before Abel officially takes the CEO seat?”
The balance-sheet headline: Berkshire’s cash-and-bills pile remains enormous
Berkshire’s “dry powder” is not a talking point—it’s a defining feature of the equity case heading into 2026.
In its Form 10‑Q for the quarter ended Sept. 30, 2025, Berkshire reported (in billions):
- $72.156B in cash and cash equivalents (Insurance and Other) [9]
- $305.367B in short-term investments in U.S. Treasury Bills (Insurance and Other) [10]
- $4.150B in cash and cash equivalents (Railroad, Utilities and Energy) [11]
That combination aligns with the widely cited ~$381.7B record cash figure discussed in coverage of Berkshire’s Q3 disclosures and portfolio activity. [12]
Two nuances investors often miss:
- Berkshire disclosed that insurance and other businesses held $354.3B in cash, cash equivalents and T‑bills net of payables for unsettled purchases at Sept. 30, 2025—an important liquidity detail when markets are volatile. [13]
- Berkshire’s repurchase framework explicitly ties buybacks to liquidity: it will not repurchase stock if doing so would push consolidated cash/cash equivalents/T‑bill holdings below $30B. [14]
In other words, the “cash pile” is not fully deployable in any scenario—and Berkshire wants investors to understand that.
Share repurchases: still quiet (and that’s part of the signal)
For investors hoping that Berkshire’s cash hoard automatically implies aggressive buybacks, the recent record says: not yet.
Berkshire stated in its 10‑Q that there were no share repurchases in the first nine months of 2025. [15]
Reuters also reported that Berkshire had gone more than a year without buying back its own stock as of its Q3 portfolio disclosure period—fueling the view that management is staying disciplined on valuation. [16]
Heading into the Dec. 26 open, this matters because the market tends to treat Berkshire buybacks as a “valuation tell.” Silence can be interpreted as: management is not seeing enough margin of safety.
Earnings context: operating earnings improved, but Berkshire warns GAAP net income can mislead
Berkshire’s most recent quarterly snapshot (released Nov. 1, 2025, covering Q3) showed:
- Operating earnings:$13.485B (Q3 2025) vs $10.090B (Q3 2024) [17]
- Net earnings attributable to shareholders:$30.796B (Q3 2025) vs $26.251B (Q3 2024) [18]
But Berkshire again stressed that GAAP requires unrealized equity gains/losses to run through earnings—and that the resulting “net earnings per share” can be extremely misleading if you don’t understand the accounting. [19]
For investors setting expectations into year-end and early 2026, Berkshire’s own breakdown of Q3 operating earnings by major bucket is often the more useful lens:
- Insurance underwriting:$2.369B [20]
- Insurance investment income:$3.181B [21]
- BNSF:$1.449B [22]
- Berkshire Hathaway Energy:$1.489B [23]
- Manufacturing, service & retailing:$3.616B [24]
Berkshire also reported insurance float of approximately $176B at Sept. 30, 2025 (up about $5B since year-end 2024), underscoring why the investment-income line remains so central to the thesis. [25]
Portfolio moves: Apple trims continue, and Alphabet enters the mix
One of the most market-relevant developments from Berkshire’s latest disclosed positioning is how its public-equity exposure is evolving—especially with leadership changing hands.
Reuters reported that Berkshire revealed a roughly $4.3B Alphabet stake (17.85 million shares as of Sept. 30) and further reduced Apple, cutting its Apple shares to 238.2 million from 280 million in Q3. Reuters also noted Berkshire has sold nearly three-quarters of the Apple shares it once held (over 900 million). [26]
Reuters added several other portfolio datapoints that investors may reprice into the Dec. 26 session:
- Berkshire bought $6.4B of stock and sold $12.5B in Q3—its 12th straight quarter as a net seller. [27]
- Berkshire also sold about 6% of its Bank of America shares, while exiting D.R. Horton and adding to positions such as Chubb and Domino’s Pizza. [28]
This isn’t day-trading behavior. In context, it reads like a deliberate de-risking and cash-building phase—exactly the kind of posture investors might scrutinize as Abel takes the CEO reins.
Kraft Heinz: impairment details, board exit, and the planned split
Berkshire’s equity-method holdings can create large, “lumpy” earnings impacts, and Kraft Heinz is the headline example in 2025.
In the Sept. 30, 2025 10‑Q, Berkshire disclosed it recorded a pre-tax impairment loss of approximately $5.0B on Kraft Heinz in Q2 2025, reducing the carrying value to fair value at that time. [29]
The filing also notes Berkshire representatives stepped down from Kraft Heinz’s board on May 19, 2025, after which Berkshire’s access to information became more limited and the company shifted to recognizing Kraft Heinz equity-method effects on a one-quarter lag. [30]
Berkshire further cited Kraft Heinz’s announcement (Sept. 2, 2025) of a plan to split into two independent publicly traded companies via a tax-free spin-off. [31]
Why this matters for Berkshire stock before the Dec. 26 open: investors often treat these disclosures as “quality of earnings” signals. They’re reminders that Berkshire’s reported results can be influenced by large, non-operating accounting moves—and that some legacy bets remain complicated.
Deal watch: the $9.7B OxyChem acquisition is on the clock
One of the most concrete “cash deployment” actions in 2025 is Berkshire’s agreement to buy Occidental’s chemical business, OxyChem, in an all-cash $9.7B transaction (subject to customary adjustments). [32]
Key terms Berkshire investors may watch into year-end:
- The transaction is expected to close in Q4 2025, subject to regulatory approvals and other closing conditions. [33]
- Occidental will retain legacy environmental liabilities via a subsidiary, with Glenn Springs Holdings continuing to manage existing remedial projects. [34]
- Berkshire described OxyChem as a global manufacturer of commodity chemicals with applications spanning water treatment, pharmaceuticals, and construction-related end markets. [35]
- The press release includes a quote from Greg Abel emphasizing Berkshire is acquiring a “robust portfolio of operating assets” supported by an established team—language that reads like a preview of how Abel may frame acquisitions as CEO. [36]
For the Dec. 26 session: investors may look for any indication the deal is progressing toward close (or delayed). Importantly, “expected to close” is not “closed”—so avoid assuming this has already hit the balance sheet.
Railroads in focus: the UP–Norfolk Southern merger attempt puts pressure on the entire sector (including BNSF)
BNSF is a cornerstone Berkshire asset, which is why major North American rail developments can ripple into Berkshire sentiment even without Berkshire-specific news.
Reuters reported that Union Pacific and Norfolk Southern have formally advanced a proposed combination by submitting a merger application to U.S. regulators (the Surface Transportation Board), setting up a high-stakes review process with significant competitive implications across the rail network. [37]
BNSF and other stakeholders have publicly argued about competitive effects and regulatory conditions, meaning the merger review could influence industry pricing dynamics, service expectations, and capital spending—variables that ultimately touch BNSF’s profitability.
For Dec. 26, this is less likely to be a “gap the stock” catalyst by itself, but it remains a background macro-industry narrative investors may reference when valuing Berkshire’s railroad exposure.
What analysts are projecting for BRK.B: price targets and the 2026 debate
Unlike many mega-caps, Berkshire doesn’t provide traditional forward guidance, so “forecasts” often come in the form of analyst targets, earnings model expectations, and thematic calls about capital deployment.
Two widely cited snapshots heading into late December:
- TipRanks shows an average 12‑month BRK.B price target of $538 (high $595, low $481) and a “Moderate Buy” consensus—based on a small set of recent analyst updates. [38]
- A Nasdaq.com article drawing on Zacks estimates notes revenue growth expectations for 2025 and 2026, while forecasting declines in earnings in those years—and explicitly frames the leadership transition to Greg Abel on Jan. 1, 2026 as the start of the “next chapter.” [39]
The core analytical debate going into 2026 is straightforward:
- Bull case: Berkshire’s balance sheet and cash generation make it a “financial fortress” that can buy assets in dislocations—and any significant deployment (acquisition or buybacks at attractive prices) can re-accelerate per-share value growth. [40]
- Bear/base case: If rates fall and growth stocks lead, Berkshire’s massive T‑bill position and more traditional operating mix may lag a tech-heavy benchmark—especially if management continues to sit on cash rather than deploy it. (This is a common framing in recent market commentary around Berkshire’s posture.) [41]
The interest-rate lever: why the “cash pile” can help—or hurt
Berkshire’s liquidity earns meaningful interest, but it’s not static. In its 10‑Q narrative, Berkshire pointed to the sensitivity of earnings to short-term interest rates and reiterated its preference for “safety over yield” in short-term investments. [42]
If markets are leaning into 2026 rate cuts, investors may start discounting a scenario where Berkshire’s Treasury-bill income gradually normalizes lower—making underwriting discipline, operating execution, and capital deployment even more important.
What to watch specifically on Dec. 26 (the day-after-Christmas session)
Because Dec. 26 often trades with lighter liquidity and strong seasonal narratives, it’s helpful to separate “market noise” from Berkshire-specific signals.
Here are the most Berkshire-relevant items to monitor as the market reopens:
- Any fresh headlines on the OxyChem closing timeline (or regulatory milestones) as Q4 winds down. [43]
- Any incremental commentary tied to the CEO transition and how responsibilities are split across Abel, the insurance leadership, and operating CEOs. [44]
- Rate moves and front-end Treasury yields, because Berkshire’s cash/T‑bill allocation is large enough to influence investor expectations for 2026 investment income. [45]
- Read-through to BNSF from big rail news flow as the UP–Norfolk Southern process develops. [46]
- Any year-end positioning effects (tax-loss selling elsewhere, rotation, low volume) that can temporarily exaggerate price moves in mega-caps—even if Berkshire’s fundamentals haven’t changed overnight. [47]
Bottom line for investors heading into the Dec. 26 open
Berkshire Hathaway stock goes into the Dec. 26, 2025 session with three dominant pillars:
- A near-term leadership inflection point (Abel becomes CEO on Jan. 1, 2026) [48]
- A record liquidity position (hundreds of billions in cash and Treasury bills) that both supports stability and raises questions about opportunity cost [49]
- A portfolio in transition, highlighted by Apple reductions and a new Alphabet stake, alongside an ongoing net-selling streak that signals valuation discipline [50]
If you’re watching BRK.B (or BRK.A) “before the bell,” the most useful mindset may be this: Dec. 26 price action can be noisy—but Berkshire’s 2026 narrative will likely be driven by whether the company deploys capital (deals, buybacks, or opportunistic investments) and how seamlessly the post‑Buffett CEO era begins.
This article is for informational purposes and does not constitute investment advice.
References
1. www.nasdaq.com, 2. www.nasdaq.com, 3. www.berkshirehathaway.com, 4. www.berkshirehathaway.com, 5. www.berkshirehathaway.com, 6. www.berkshirehathaway.com, 7. www.berkshirehathaway.com, 8. www.berkshirehathaway.com, 9. www.berkshirehathaway.com, 10. www.berkshirehathaway.com, 11. www.berkshirehathaway.com, 12. www.berkshirehathaway.com, 13. www.berkshirehathaway.com, 14. www.berkshirehathaway.com, 15. www.berkshirehathaway.com, 16. www.reuters.com, 17. www.berkshirehathaway.com, 18. www.berkshirehathaway.com, 19. www.berkshirehathaway.com, 20. www.berkshirehathaway.com, 21. www.berkshirehathaway.com, 22. www.berkshirehathaway.com, 23. www.berkshirehathaway.com, 24. www.berkshirehathaway.com, 25. www.berkshirehathaway.com, 26. www.reuters.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.berkshirehathaway.com, 30. www.berkshirehathaway.com, 31. www.berkshirehathaway.com, 32. www.berkshirehathaway.com, 33. www.berkshirehathaway.com, 34. www.berkshirehathaway.com, 35. www.berkshirehathaway.com, 36. www.berkshirehathaway.com, 37. www.reuters.com, 38. www.tipranks.com, 39. www.nasdaq.com, 40. www.reuters.com, 41. www.nasdaq.com, 42. www.berkshirehathaway.com, 43. www.berkshirehathaway.com, 44. www.berkshirehathaway.com, 45. www.berkshirehathaway.com, 46. www.reuters.com, 47. www.marketwatch.com, 48. www.berkshirehathaway.com, 49. www.berkshirehathaway.com, 50. www.reuters.com
