The stock of Berkshire Hathaway is outperforming the broader U.S. market this year, hitting an all-time high even as the benchmark S&P 500 index has fallen into a correction.
Berkshire’s Class A stock rose 1.8% to close at $784,957 on March 17, while its more affordable Class B shares ended the trading day at $523.01. Both were all-time highs for the shares. Berkshire’s Class B stock is up 16% this year versus a 3% decline in the benchmark S&P 500 index.
However, the S&P 500 has fallen 10% from recent highs, the definition of a market correction. Berkshire Hathaway’s stock has now outperformed the benchmark S&P 500 index during the past three, five, 10, and 20 years. The latest record highs in Berkshire’s stock come as company co-founder and chair Warren Buffett demonstrate his investing prowess.
Safe Haven
Buffett was a net seller of stocks for nine consecutive quarters during the American bull markets of 2023 and 2024, raising Berkshire’s cash holdings to a record $334.20 billion. Analysts say the company’s massive cash pile and fortress balance sheet are reasons why investors are piling into Berkshire Hathaway’s stock during the current market turmoil.
In February of this year, Berkshire Hathaway reported strong fourth-quarter financial results that showed a 70% rise in after-tax operating profits. Investors view Berkshire Hathaway’s stock as a safe haven amid the current market storm and are buying the stock as they rotate out of richly valued technology shares.
Berkshire’s Class B stock has a market capitalization of $1.13 trillion and is the only non-technology firm to be valued at more than $1 trillion. BRK.B stock has risen 28% over the last year.
Is BRK.B Stock a Buy?
Berkshire Hathaway’s Class B stock currently has a Moderate Buy rating based on one Buy and one Hold recommendations issued in the past three months. The average BRK.B price target of $519.50 implies 0.83% downside from current levels.
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