New York, Jan 11, 2026, 10:06 EST — Market closed
- Berkshire’s shares edged lower on Friday, despite Wall Street hitting record highs.
- Tuesday brings inflation data alongside the season’s first major bank earnings reports.
- Investors remain cautious as they assess Berkshire’s performance in the first weeks with new CEO Greg Abel at the helm.
Berkshire Hathaway’s Class B shares (BRK.B) slipped 0.13% to finish Friday at $499.10, starting the week on a weaker footing after U.S. stocks hit new highs. Class A shares (BRK.A) also dipped, closing near $748,060, down roughly 0.1%.
It’s significant now because Berkshire stands at the crossroads of markets and the real economy — spanning insurance, rail, energy, and consumer brands — and it’s stepping into 2026 with a new CEO for the first time in decades. The stock often acts as a steady, value-driven proxy when investors weigh rates and risk appetite.
Friday saw that appetite show up again. The S&P 500 hit a record high, boosted by chipmakers and other growth stocks following the newest jobs figures. Investors remained hungry for the AI theme. “Investors are getting granular and picking the winners and losers,” noted Zachary Hill, head of portfolio management at Horizon Investments. (Reuters)
The jobs report didn’t resolve the rate question but set a clear tone. U.S. payrolls increased by 50,000 in December, while the unemployment rate slipped to 4.4%. That mix has investors leaning toward the Fed holding rates steady at its Jan. 27-28 meeting. “All roads lead to the unemployment rate,” said Olu Sonola, head of U.S. economic research at Fitch Ratings. (Reuters)
For Berkshire, rising rates go beyond mere macro talk. Higher yields boost returns on its hefty cash stash and the insurance “float”—the funds held between premium collection and claim payouts—though storm-related claims can still cause swings in underwriting results.
The next key checkpoint arrives quickly. The U.S. consumer price index for December is set for release on Tuesday, Jan. 13, at 8:30 a.m. ET. This report frequently shifts expectations for the Fed’s upcoming policy decisions. (Bureau of Labor Statistics)
Tuesday kicks off with a wave of major bank earnings. JPMorgan is set to report fourth-quarter and full-year results around 7:00 a.m. ET, followed by an 8:30 a.m. ET earnings call. These numbers often send ripples across the financial sector. Meanwhile, Berkshire Hathaway has been reducing stakes in longtime holdings like Apple and Bank of America, while holding $381.7 billion in cash and equivalents as of Sept. 30. Investors see the leadership transition there as a potential risk to sentiment. “It’s hard to imagine that there will be the same cult following,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management. Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, described Buffett’s departure as “a psychological tripwire.” (JPMorgan Chase)
Management remains in focus. A recent filing revealed Berkshire has pegged Abel’s 2026 cash salary at $25 million—dramatically higher than the $100,000 Warren Buffett accepted for years—as the company shifts toward a more traditional executive pay model. (Reuters)
That said, Berkshire’s stock could shift suddenly. If investors continue favoring riskier growth plays, the company may underperform despite its heft and solid balance sheet. A steeper-than-anticipated drop in Treasury yields would probably cut into the bond income insurers rely on.
The bigger question that keeps Berkshire investors on edge: how to deploy its capital. The company sits on a hefty cash reserve, ready to strike. But with valuations still elevated, pinpointing meaningful deals or choosing the right moment for aggressive buybacks isn’t straightforward.
For now, the immediate trigger is straightforward and scheduled. Traders are set to digest Tuesday’s CPI report at 8:30 a.m. ET, alongside the kickoff of bank earnings before the open, to see if Friday’s “risk-on” sentiment carries into the week.
