- Stock Price (Nov 3, 2025): ~$478 per share (BRK-B), slightly down in the past week and about 5% below its mid-October peak around $505 [1].
- Market Cap: Approximately $1.05 trillion as of the latest price [2], making Berkshire Hathaway one of the largest U.S. companies.
- 2025 Performance:+8% year-to-date (roughly) for BRK-B, lagging the S&P 500’s ~+14% gain in 2025 [3]. (The stock hit all-time highs earlier in the year but pulled back after Buffett’s retirement announcement.)
- Valuation: Trailing P/E ~17 [4] (below the S&P 500’s forward P/E ~22 [5]). Price/Book ~1.5× (shares trade around 1.5 times book value) [6].
- Q3 2025 Earnings:$13.5 billion operating profit for the quarter (+34% year-over-year) [7]; $30.8 billion in total net income (boosted by investment gains) [8].
- Cash Reserves:$382 billion in cash and equivalents (record high after Q3 2025) [9], providing a massive “war chest” for future investments.
Current Price & Recent Performance
Berkshire Hathaway’s Class B stock (NYSE: BRK-B) trades around $477–$480 as of early November 2025 [10]. The share price has eased off about 5% since mid-October, when it briefly crossed the $500 mark before pulling back [11]. Year-to-date, BRK-B is up roughly 8–9% in 2025, which means it has underperformed the S&P 500 (the S&P is up about 14–16% over the same period) [12]. Berkshire’s stock had been at record highs earlier in the year, but it fell back after CEO Warren Buffett announced his retirement plans in May – since that news, the stock has lagged the broader market’s rally [13] [14]. (At one point it dropped ~9–15% in the weeks following Buffett’s announcement before stabilizing [15].)
It’s worth noting that Berkshire’s two share classes have identical economic rights. The ultra-priced Class A shares (BRK-A), which trade around $715,000 apiece, equal 1,500 Class B shares in value [16]. Class A and B shares move in lockstep, so BRK-A has seen the same ~8% YTD gain and mirrors any percentage changes in BRK-B. In other words, aside from their different share price and lack of divisibility, BRK-A and BRK-B performance is the same [17].
Financial Metrics & Valuation
By traditional metrics, Berkshire’s valuation looks reasonable relative to its history. At ~$477/share, BRK-B trades at about 1.5× book value (price-to-book ratio ~1.5) [18], which is near the company’s average valuation in recent years. Its trailing price-to-earnings ratio is around 16–17 [19], reflecting Berkshire’s substantial earnings base. That P/E is lower than the overall market’s (the S&P 500’s forward P/E is above 22) [20], partly because Berkshire’s earnings growth is expected to be steady but not high-flying. With a market capitalization now over $1 trillion [21], Berkshire is among the world’s most valuable companies, yet it still trades at a valuation multiples that value investors consider moderate (especially given its high-quality assets).
Notably, Berkshire has not repurchased any stock in over a year, despite having ample cash. In fact, the company paused its share buybacks for five consecutive quarters, which is a signal that Buffett and his team do not view the stock as significantly undervalued at current levels [22]. In past periods, Buffett was willing to buy back Berkshire shares when the price dipped near or below his assessment of intrinsic value (historically, around 1.2× book value was a loose buyback threshold). Today, with shares around 1.5× book, management appears to consider the stock “fairly valued” rather than a bargain [23]. This restraint on buybacks aligns with Buffett’s disciplined approach – he’d rather deploy Berkshire’s capital into new investments or acquisitions than repurchase shares unless he sees them trading at a clear discount to intrinsic worth.
Recent News & Developments
Quarterly Earnings Blowout: Berkshire Hathaway’s third-quarter 2025 earnings underscored the company’s robust operating momentum. Operating earnings (which exclude volatile investment gains/losses) came in at $13.5 billion, up 34% from the same quarter a year prior [24]. This jump was driven by surging insurance profits and improved results across its businesses. Notably, Berkshire’s insurance division had a blockbuster quarter – after a tough year prior, underwriting turned strongly profitable (GEICO, for example, saw a big rebound in auto insurance earnings, aided by rate increases and fewer large losses) [25]. The BNSF railroad and manufacturing units also posted solid growth (BNSF’s profit rose ~5% on stable freight volumes and cost controls) [26], and the energy/utilities segment remained a steady contributor. On a GAAP net income basis (including investment fluctuations), Berkshire reported $30.8 billion in Q3 net earnings, up from $26.3 billion in Q3 2024 [27]. It’s worth remembering that these net results swing with the stock market – under accounting rules, Berkshire must count unrealized gains on its equity investments as part of earnings, which can create huge bottom-line volatility [28]. Buffett emphasizes operating earnings as the better gauge of performance, and by that measure the latest quarter was excellent.
Record Cash Pile & Cautious Moves: One headline-grabbing figure from Berkshire’s recent results is its mountain of cash. Berkshire’s cash, cash equivalents, and short-term Treasury holdings have swelled to about $381.7 billion as of September 30, 2025 – the largest cash hoard in the company’s history [29]. In just the latest quarter, Berkshire’s cash pile grew by nearly $30 billion (up from roughly $350 billion mid-year) [30] [31]. This war chest now represents over 30% of Berkshire’s total assets. What is the company doing with all that cash? Mostly parking it in safe short-term investments – about half is in U.S. Treasury bills yielding ~5.4%, which means Berkshire earns around $20 billion per year in interest just on its cash stash [32].
Buffett’s patience here is telling: rather than make big, overpriced acquisitions in what he sees as an “overheated” market, he’s content to let the cash earn interest and wait for opportunities. In fact, recent filings show Berkshire was a net seller of stocks in Q3 – it sold roughly $14 billion more in equities than it bought during the quarter [33]. This continues a multi-year trend of Buffett shoring up cash reserves. He has pointed out that stock market valuations (with the S&P 500 trading at over 22× forward earnings) are high by historical standards [34], so Berkshire has largely stayed on the sidelines, “sitting out the rally” and accumulating dry powder. The last time Berkshire amassed a cash pile of this magnitude was in the lead-up to the 2008 financial crisis – cash that Buffett famously deployed to great effect when bargains finally emerged. Today’s record $382 billion cache has many analysts speculating that Buffett (or his successor) is waiting for a major market correction or a mega-deal before putting this money to work [35] [36].
OxyChem Acquisition: Despite Buffett’s general caution, Berkshire did strike at least one significant deal recently. In October 2025, Berkshire announced it will acquire Occidental Petroleum’s chemical business, known as OxyChem, in an all-cash deal worth $9.7 billion [37]. OxyChem is a producer of PVC, chlor-alkali and other industrial chemicals, and it will become a wholly-owned operating subsidiary of Berkshire once the deal closes. This purchase is notable not only for its size but also because Berkshire is already a major shareholder of Occidental Petroleum itself – after several years of stock purchases, Berkshire now owns nearly one-third of Occidental’s outstanding shares [38]. The OxyChem acquisition thus deepens Berkshire’s investment in Occidental’s business. Occidental plans to use the $9.7 billion cash infusion to pay down debt, strengthening its balance sheet [39] (which in turn benefits Berkshire’s equity stake in OXY). Buffett’s team negotiated a price for OxyChem that amounts to less than 10× the unit’s trailing 12-month pre-tax earnings – a characteristically shrewd valuation [40]. Many observers see this as likely Buffett’s “final big acquisition” as CEO, and it aligns with his strategy of buying solid, cash-generative businesses at reasonable prices. While $9.7B is just a small slice of Berkshire’s cash hoard, the move shows that Buffett isn’t entirely idle – he’ll pull the trigger on a deal when it meets his value criteria.
Portfolio Tweaks: On the investment portfolio side, Berkshire’s quarterly 13F filings suggest only modest changes in recent months. The company has largely been trimming some stock holdings and adding to others at the margins, while net selling overall. Its stock portfolio remains highly concentrated in a few top names (more on that below), and there were no blockbuster new stock investments or liquidations disclosed in the last quarter. One notable item: Berkshire took a $3.7 billion impairment charge on its investment in Kraft Heinz during 2025 (reflecting a write-down of that stake’s value) [41]. Buffett has admitted the Kraft Heinz bet hasn’t panned out as hoped, and the accounting write-down reduced Berkshire’s book value. However, this is an isolated case in an otherwise strong portfolio. The bigger picture is that Berkshire’s core holdings – like Apple, Coca-Cola, and American Express – remain intact and Berkshire appears content to hold or slightly pare positions rather than make sweeping changes. In sum, beyond the OxyChem deal, the recent period has been about excellent operating results and incremental moves as Berkshire prepares for a leadership transition.
Buffett’s Retirement & Leadership Transition
One of the most consequential developments for Berkshire Hathaway is Warren Buffett’s impending retirement as CEO. At the company’s annual shareholder meeting in early May 2025, the 95-year-old Buffett stunned shareholders by announcing he will step down as CEO at the end of 2025, marking the end of a 60-year era [42]. Buffett confirmed that Greg Abel, currently vice chairman for non-insurance operations, will take over as Chief Executive on January 1, 2026 [43] [44]. (This succession plan wasn’t a total surprise – Abel, 62, had been designated as Buffett’s heir-apparent since 2021 – but hearing the official timeline was a historic moment for the company.)
Buffett told the Omaha crowd “I think the time has arrived where Greg should become the chief executive officer of the company at year end,” making clear that the handoff would occur in a few months’ time [45]. He added that he would still “hang around and conceivably be useful in a few cases” as an advisor and remain as Chairman of the Board, but that “the final word” on all decisions would belong to Abel going forward [46]. Buffett’s announcement was met with a mix of emotion and applause from the tens of thousands of shareholders in attendance – truly the end of an era for Berkshire.
Market Reaction: In the weeks immediately following Buffett’s retirement announcement, Berkshire’s stock price fell as some investors grappled with the news. By late May, BRK-B was down on the order of 9–15% from its pre-announcement highs [47]. (It had run up to record levels earlier in 2025, so some pullback was perhaps inevitable, but the timing suggests the loss of Buffett’s leadership weighed on sentiment.) This underperformance persisted for a while – Berkshire shares notably trailed the S&P 500’s rally in mid-2025 as Buffett’s exit loomed [48]. The concern on Wall Street was whether Berkshire without Buffett might lose a bit of its magic. As one analyst at CFRA Research bluntly put it: “The question going forward is: will Berkshire still have a Buffett premium when Buffett is not there? You’re buying a stock and you’re also getting the investing prowess of a legend. With that legend gone, what is the value?” [49]. In other words, Berkshire’s stock has long enjoyed a trust factor (and a valuation boost) thanks to Buffett’s presence, and skeptics wonder if some of that could fade when he’s no longer in the CEO seat.
Buffett’s Confidence and Abel’s Credentials: Warren Buffett, for his part, has gone out of his way to reassure shareholders about the transition. He stated unequivocally that he has “zero” intention of ever selling his Berkshire stock and that “the decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.” [50] In Buffett’s view, Berkshire’s future is in excellent hands – a striking vote of confidence from the legendary investor. Greg Abel is a 25-year Berkshire veteran who rose through the ranks by running Berkshire’s energy utilities division (he famously grew MidAmerican Energy, which became Berkshire Hathaway Energy). Since 2018 he’s been a Berkshire vice-chairman overseeing all non-insurance operations, meaning Abel already directly manages engines like BNSF railroad and BHE utilities, and coordinates with Berkshire’s many CEOs. Buffett has praised Abel’s temperament and ability, and back in 2021 Buffett telegraphed his trust by naming Abel as successor if anything were to happen to him. In practice, Abel and Berkshire’s two portfolio managers (Todd Combs and Ted Weschler) have been handling many day-to-day decisions for years now [51]. Buffett quipped at the 2025 meeting that he’s been “kind of delegating like crazy” and that his role has become more of a chief cheerleader and capital allocator. So, while Buffett’s departure is psychologically significant, the operational transition has been gradual and well-planned. Berkshire’s culture of decentralization means each major subsidiary already runs itself with a high degree of autonomy – a structure designed to outlive any one leader.
Buffett will remain involved as Executive Chairman (much as he stayed on as a hands-on Chairman when he eventually gives up the CEO title) [52]. This dual structure means Greg Abel will handle most executive duties and decisions, but Buffett will still be available for high-level counsel and to weigh in on big investments if needed. In essence, Berkshire is aiming for a seamless handoff, maintaining continuity in both its values and its strategy. Many Berkshire observers believe Abel will preserve the conglomerate’s famously frugal, long-term-oriented culture [53] – he’s worked under Buffett and Vice-Chair Charlie Munger’s guidance for years and is expected to “preserve the culture of the conglomerate” even if he lacks Buffett’s star power [54].
Community and Expert Reactions: The news of Buffett’s retirement prompted an outpouring of tributes from the business community, underscoring how much Buffett’s stewardship has meant. “Warren Buffett represents everything that is good about American capitalism and America itself – investing in the growth of our nation’s businesses with integrity, optimism, and common sense,” said JPMorgan CEO Jamie Dimon [55]. Apple’s CEO Tim Cook tweeted, “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him.” [56] Such praise from fellow CEOs highlights the legacy Buffett leaves behind after growing Berkshire from a failing textile mill into a corporate titan spanning every industry. Cole Smead, a Berkshire-focused fund manager, summed it up emotionally: “Well, it’s the end of an era. It’s sad, but it’s life.” [57].
For investors, the consensus is that no one can replace Buffett – his personality, credibility, and savvy are one-of-a-kind. However, Berkshire Hathaway as a company is much larger than one man. Buffett’s mantra has always been to build a company that would “outlast him”, and indeed Berkshire’s decentralized structure and strong subsidiaries give it resiliency. While the stock may lose a bit of its Buffett-related valuation premium in the short term [58], most analysts do not foresee any fundamental break in Berkshire’s performance or policies. In fact, some are optimistic that with the uncertainty lifted and Abel at the helm (plus Buffett still advising as Chairman), Berkshire’s stock could earn back investor confidence. The successful transitions of other iconic companies are often cited – e.g. the way Apple continued to thrive under Tim Cook after Steve Jobs – as a hopeful analogy [59]. In Buffett’s own words, “the prospects of Berkshire will be better under Greg’s management” – and given Buffett’s stake (he’s keeping 100% of his shares to eventually donate them) [60], his incentives are fully aligned with a smooth handoff. Time will tell, but so far the leadership transition appears on track, with Buffett’s era closing and Berkshire’s “next act” set to begin in 2026.
Berkshire’s Business Model & Major Holdings
Berkshire Hathaway is often described as a “conglomerate” or a mini-economy unto itself, and for good reason. The company engages in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services, and retailing [61]. In practice, this means Berkshire fully owns a vast array of subsidiaries across many industries. For example, under the Berkshire umbrella are: GEICO (the auto insurer known for its gecko mascot), General Re (a major reinsurer) – both part of Berkshire’s huge Insurance operations; BNSF Railway (Burlington Northern Santa Fe), which is one of North America’s largest freight railroad networks; Berkshire Hathaway Energy (a utility and energy conglomerate with power companies and pipelines across the U.S. and abroad); and dozens of manufacturing and consumer businesses such as Precision Castparts (a maker of aerospace and industrial components), Lubrizol (specialty chemicals), Duracell (batteries), Clayton Homes (manufactured housing), See’s Candies, Dairy Queen, Brooks (running shoes), Fruit of the Loom, and many more. This sprawling collection of businesses yields a highly diversified stream of earnings. Berkshire companies sell everything from insurance policies and electricity to candy, underwear, and bricks – providing significant protection against any one sector’s downturn. Buffett often quips that Berkshire’s myriad parts ensure that “our economic engine is always running,” with some businesses performing better when others might stumble.
One cornerstone of Berkshire’s model is its Insurance business, which not only generates underwriting profit but also provides the fuel for Berkshire’s investments. Insurance subsidiaries like GEICO collect premiums upfront and set aside reserves for future claims, creating a large investable pool of funds known as “float.” Berkshire’s insurance float reached approximately $176 billion as of Q3 2025 [62]. This float essentially functions as zero-cost (or even better, negative-cost) capital for Buffett to invest – because Berkshire gets to invest those premium dollars until claims come due, and if underwriting is done well, the insurance operation may never have to pay out more than it took in. Buffett has called float one of Berkshire’s key advantages, as it allows the company to hold large stock positions and buy businesses using other people’s money (the premiums) at minimal cost. Importantly, Berkshire’s insurance units (GEICO, General Re, Berkshire Re, etc.) have a stellar long-term record, usually producing an underwriting profit. This means the float not only is cost-free, it actually grows over time. The insurance segment also throws off substantial investment income – in Q3, for instance, Berkshire earned over $3 billion in interest and dividends from its insurance investment portfolio [63], thanks in part to rising interest rates on its bond holdings. All of this makes insurance the financial bedrock of Berkshire Hathaway.
Beyond insurance, Berkshire’s wholly-owned operating companies span railroads, utilities/energy, and a mix of industrial, retail, and service businesses. These subsidiaries collectively earn tens of billions annually and are generally market leaders in their fields. BNSF Railway, for example, gives Berkshire a dominant presence in freight rail transport (moving everything from grain and coal to consumer goods across the country). Berkshire Hathaway Energy owns a constellation of electric utilities (like PacifiCorp in the West and MidAmerican Energy in the Midwest), natural gas pipelines, and renewable energy assets (wind farms, solar fields) – making it a major player in the U.S. energy infrastructure. On the manufacturing side, Berkshire companies produce precision aerospace parts, building materials, specialty chemicals, and more. Its retail and services businesses are equally eclectic: Berkshire owns auto dealerships, a chain of luxury auto retail stores, NetJets (fractional jet ownership aviation), several real estate brokerage networks (Berkshire Hathaway HomeServices), and even Nebraska Furniture Mart, a gigantic home furnishings store in Omaha. This multi-industry portfolio means Berkshire’s fortunes don’t rise and fall on any single business line. The diversification provides stability – for instance, during an economic downturn, insurance and utility profits might hold steady or increase, helping offset weakness in more cyclical segments like retail or industrial manufacturing.
Crucially, Berkshire Hathaway is not just an operator of businesses; it is also one of the world’s largest investment companies. Buffett has invested Berkshire’s insurance float and retained earnings into a massive portfolio of publicly traded stocks over the decades. As of 2025, Berkshire’s stock portfolio is valued around $350 billion (depending on market fluctuations). This portfolio includes stakes in dozens of major corporations, effectively making Berkshire a partial owner of many household-name firms. The single largest holding by far is Apple Inc. – Berkshire owns roughly 915 million shares of Apple (about a 5.6% ownership of Apple) which at current market prices is worth on the order of $70–$75 billion. Apple alone now accounts for about 24% of Berkshire’s entire equity portfolio by value [64]. Buffett has famously praised Apple as an “incredible company,” and it’s one of the few tech stocks he embraced; in fact, Apple has been so successful for Berkshire that Buffett quips he’s happy to own more of Apple than any of Berkshire’s own subsidiaries. He’s also indicated Apple is one of the few holdings he would “never sell” [65] given its importance to Berkshire.
Aside from Apple, Berkshire’s other major stock holdings read like a who’s who of American blue-chip companies. These include stalwart consumer brands like The Coca-Cola Company (Berkshire owns 400 million Coca-Cola shares, an investment dating back to 1988) and American Express (151 million shares, first bought in the 1960s) – both of which Berkshire has held for decades and which remain among its top four positions. Berkshire also owns significant stakes in Bank of America (~1 billion shares, making it BoA’s largest shareholder), Chevron (an oil & gas supermajor, though this stake has been trimmed recently), Occidental Petroleum (~25% ownership, not counting the separate OxyChem deal), Moody’s Corporation (credit ratings), HP Inc. (computers/printers), Kraft Heinz, DaVita (healthcare), and others. The top five stocks – Apple, Bank of America, American Express, Coca-Cola, and Chevron – comprise roughly two-thirds of the total portfolio’s value [66]. This reflects Buffett’s philosophy of concentrated investing in companies he deems excellent and undervalued. Many of these holdings also pay rich dividends. For instance, Berkshire receives over $700 million a year in Coca-Cola dividends and a similar magnitude from its Apple dividends – providing a steady income stream that Buffett can then reinvest.
Overall, Berkshire’s business model is a hybrid: it’s part operating company (with earnings from subsidiaries) and part investment vehicle (with earnings from stocks). This model has allowed Berkshire to reinvest internal cash flows at a high rate of return. Berkshire reinvests all its earnings – notably, it pays no dividend to shareholders, preferring to use cash for new investments, buybacks, or acquisitions (Buffett believes Berkshire can compound money internally better than shareholders could elsewhere) [67]. The result has been extraordinary long-term growth. Under Buffett’s reign (since 1965), Berkshire’s book value per share grew at roughly a 19% compound annual rate [68], vastly outperforming the S&P 500 over that period. Today Berkshire’s shareholders’ equity is over $500 billion and it’s considered one of the financially strongest companies in the world – it carries very little parent-level debt and enjoys a high credit rating. In summary, Berkshire Hathaway’s empire of operating businesses, combined with its giant stock portfolio, make it unique in the corporate landscape. It’s effectively a one-stop portfolio that gives investors exposure to a broad cross-section of the economy (from insurance to tech to consumer goods), managed under one corporate umbrella with a legendary capital allocator at the helm (and soon, his hand-picked successor). This structure has proven very resilient and profitable over time, though its sheer size means future growth will likely be more modest (the “law of large numbers” makes doubling a trillion-dollar company challenging).
Outlook and Analyst Forecasts
Near-Term Outlook: Wall Street’s view on BRK-B in the coming months is guardedly optimistic, but not exuberant. According to Benzinga, the average 12-month price target among 38 analysts covering Berkshire is about $567.61 per Class B share – roughly 19% above the current trading price [69]. That implies some upside, but interestingly the consensus analyst rating on the stock is “Sell” [70]. In other words, many analysts feel Berkshire’s recent run-up and Buffett transition uncertainty make it a less attractive buy at this moment, despite the upside to target price. The range of price targets is also very wide – the highest target is $597 and the lowest is $325 [71] – highlighting the divergent opinions on Berkshire’s post-Buffett trajectory.
Various forecasting models likewise predict relatively flat performance in the short term. One algorithmic model (CoinCodex) projects an average price of about $499 per share for the rest of 2025, essentially where BRK-B trades now [72]. For 2026 (which will be the first year with Greg Abel fully in charge), the same model forecasts an average around $497 – basically no big change from current levels [73]. These muted projections reflect expectations that investors might “wait and see” how Berkshire fares without Buffett before revaluing the stock higher [74] [75]. The company’s fundamentals are strong, but the absence of a growth catalyst and the leadership transition could keep the stock range-bound in the near term, in the view of many analysts.
Long-Term Predictions: Looking further out, the outlook becomes more bullish on Berkshire’s potential. By 2027–2030, some forecasts expect Berkshire will resume compounding value at a healthy clip. CoinCodex’s long-range prediction, for example, sees BRK-B around $880 by 2030 (with a possible range of ~$860 to $900) [76]. That would equate to roughly a 12% annual growth rate from today [77]. Such growth would presumably come from continued earnings increases in Berkshire’s businesses, intelligent capital deployment of that $380B cash hoard, and the market gaining confidence in Abel’s leadership over time (perhaps allowing Berkshire’s valuation multiples to expand again once the “Buffett exit” is fully digested). To be clear, these are speculative forecasts – a lot can happen in 5+ years. If Abel proves less adept at capital allocation or if Berkshire’s conglomerate structure struggles without Buffett’s aura, these optimistic targets might not materialize [78]. Conversely, if Berkshire finds a way to deploy its cash in high-return investments (say, a major acquisition or two at bargain prices during a downturn), the stock could certainly reach those levels or beyond by 2030.
Bull vs. Bear Cases: It’s helpful to consider the bullish and bearish theses that analysts are discussing for Berkshire Hathaway in the post-Buffett era [79] [80]:
- Bull Case: Berkshire’s fundamentals remain rock-solid and the company is built to thrive even without Buffett day-to-day. The diversified earnings base – spanning insurance, railroads, energy, manufacturing, etc. – gives Berkshire multiple engines for growth and resilience in recessions [81]. Bulls also note that Greg Abel and the Berkshire investment managers have effectively been running much of the show already; Buffett’s investment philosophy and culture are deeply ingrained, so Berkshire can continue on its current path smoothly [82]. With over $380B in cash, Abel will have enormous flexibility to invest opportunistically, which could drive future returns. Additionally, Berkshire’s insurance business is booming (benefiting from higher interest rates and firming premiums), and that reliable income can fuel more stock purchases or acquisitions. In short, the bull case is that Berkshire’s intrinsic value will keep compounding as it always has – the company has “several ways to make money and resist economic slowdowns,” and new leadership won’t change that [83]. If Abel demonstrates even 80% of Buffett’s acumen, Berkshire stock could outperform modest expectations.
- Bear Case: The loss of Warren Buffett is not something to be taken lightly, say the bears. They argue that Buffett’s presence has long conferred a valuation premium on Berkshire – investors were willing to pay up for the stock because of their trust in Buffett’s judgment [84]. Without him, Berkshire’s P/E multiple could contract, weighing on the stock price regardless of earnings [85]. Moreover, Berkshire is so large now that its growth has naturally slowed (in recent quarters, revenue and operating profit have been growing only in the single digits) [86]. Bears question whether Berkshire can outperform the market going forward, especially if parts of its portfolio (like its big equity stakes in Apple and financial stocks) face headwinds. Another concern is capital allocation: Buffett’s legendary cash deployment skill will be hard to match, and if Abel (or whoever eventually succeeds Buffett as investment chief) makes a few poor investment choices, Berkshire’s results could suffer. There’s also the matter of succession uncertainty for investors – until Abel establishes a track record, the stock might trade sideways as the market debates if Berkshire still deserves a premium valuation. In summary, the bear case is that Berkshire’s size and the end of the Buffett era will cap its future returns – it might still be a very safe, solid company, but perhaps “no better than the average S&P 500 stock” in terms of growth potential.
Reality may well lie between these extremes. Berkshire is unlikely to suddenly skyrocket or collapse; most analysts see it as a steady ship. As a Motley Fool commentator noted, Berkshire “won’t have any eye-popping results” versus the market benchmarks, but it also has “many recession-resistant businesses that can limit its downside.” [87] In practical terms, that means Berkshire is expected to continue delivering modest, reliable growth – the kind of stock one can hold for stability and incremental gains, rather than explosive returns. Indeed, for long-term investors who prize capital preservation, Berkshire Hathaway has often been a top choice. With its fortress balance sheet, broad diversification, and shareholder-friendly ethos (Buffett and insiders still own a large chunk, aligning interests), Berkshire is viewed as a defensive stalwart. Going into 2026, many are curious to see if Buffett’s final annual letter (due in early 2026) or final moves as CEO impart any new direction – but more likely, he will stick to the script: “Stay the course.” Berkshire’s post-2025 era will be about continuity. Investors will be watching how Greg Abel articulates his strategy, but given his long apprenticeship, don’t expect radical departures. In short, the consensus is cautiously optimistic: Berkshire may not beat the market by 10+ points a year as it did in Buffett’s early decades, but it remains a financial powerhouse positioned to deliver decent returns with low risk. Many analysts suggest using any significant dips (for example, if Buffett’s departure news or other short-term issues knock the stock down) as an opportunity to buy into this one-of-a-kind conglomerate [88] for the long run.
Technical Analysis Summary
From a technical market standpoint, Berkshire’s stock has been in a holding pattern recently, but there are signs of building momentum. In late October 2025, BRK-B’s 50-day moving average crossed above its 200-day moving average – a chart formation known as a “golden cross.” This is typically viewed as a bullish signal by technical analysts, indicating that short-term momentum is overtaking long-term trend direction [89]. Remarkably, this is the first golden cross in nearly three years for Berkshire’s stock [90]. Such patterns have historically boded well: over the past 25 years, Berkshire has experienced 13 golden crosses, and on average the stock gained about 33.5% in the year following each of those instances [91]. (Of course, that’s just a historical average – not a guarantee – but it does underscore that Berkshire’s stock has tended to do well after confirming an upward trend shift.)
Despite that optimistic technical indicator, BRK-B’s price action in recent months has been mostly sideways. Over the last quarter (approx. 12 weeks), the stock is up only about +1.8% in total [92], essentially fluctuating within a range. On the upside, the $500 level has emerged as a clear resistance threshold in traders’ eyes. Berkshire shares briefly broke above $500 in early October, hitting an intraday high around $504.97 [93], but they couldn’t sustain that level and quickly retreated. That makes ~$500–505 the near-term ceiling to watch – a breakout above that zone on strong volume would be a bullish development. Beyond that, Berkshire’s all-time high sits around $542 (achieved in a prior rally earlier in 2025) [94]. While that’s about 12-13% above the current price, it represents the next major resistance if Berkshire were to gain steam and rally to new highs.
On the downside, there are a couple of support levels in view. In late October, the stock found support around the mid-$470s – roughly $473–$475 – which coincided with its 30-day lows [95]. Indeed, after dipping to that area, buyers stepped in and the stock bounced, suggesting that level is one floor. A deeper pullback could test the stock’s 3-month low around $455 [96] (set back in August/September). The $450–460 range can be considered a stronger support zone; if the stock were to fall that far, value-minded investors might see an attractive entry point (since at $450, Berkshire’s valuation metrics – P/B, etc. – would be even more compelling). It’s also notable that Berkshire’s 50-day moving average (around ~$484 as of early November) and 200-day moving average (~$480) are now very close to the current price [97], reflecting the recent consolidation. The golden cross indicates the 50-day is rising, so those moving averages could start to act as technical support if the price stays above them.
In summary, Berkshire’s chart is showing a cautiously bullish bias: the golden cross and the stock’s ability to hold the high-$400s suggest an emerging uptrend, yet clear confirmation would require a break above the $500-$505 resistance region. Traders will be watching if BRK-B can build on its new momentum or if it continues to range-trade. Given the strong fundamentals and upcoming catalysts (e.g. Buffett’s final shareholder letter, year-end earnings, Abel’s first moves as CEO), there could be impetus for a breakout. On the other hand, any broader market volatility or negative surprises could test those support levels again. Volatility in Berkshire’s stock is usually lower than the overall market (it’s often seen as a defensive play), so dramatic swings aren’t common. The most likely scenario in the near term may be continued gradual upticks – with the stock perhaps grinding higher if earnings remain strong and the transition goes smoothly. Technical analysts would say the trend is your friend, and with a new golden cross in place, the trend for BRK-B appears to be tilting upward going into 2026 [98]. Investors with a longer horizon, however, are less concerned with these technical nuances and more with the fundamentals and leadership – which, as detailed above, remain solid. Berkshire Hathaway’s stock may not be a rapid mover, but it has a way of making new highs over time, rewarding patient shareholders. As always, observers often quote Buffett’s own advice in the context of his company’s stock: “Never bet against America.” Berkshire’s diverse, America-centric portfolio and deep cash reserves position it well to weather whatever the market brings – and that, ultimately, underpins the technical outlook as well.
Sources: Berkshire Hathaway Q3 2025 Press Release [99] [100]; Yahoo Finance/BusinessWire News [101] [102]; The Motley Fool via Nasdaq [103] [104]; Benzinga Analyst Forecasts [105] [106]; Reuters (Buffett retirement) [107] [108]; TipRanks/Dow Jones Newswires [109] [110]; StockInvest.us historical prices [111]; GuruFocus valuation data [112]; Berkshire 2025 AGM Coverage [113] [114]; Economic Times (cash pile) [115].
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