Key Stats for BRK.B Stock
- Past week performance: 0.7%
- 52-week range: $464 to $538
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A New Chair and a Bigger Housing Bet
Berkshire Hathaway (BRK.B) shares edged up about 0.7% over the past week, closing Friday near $505. That quiet move masked a historic moment. On September 18, Warren Buffett, 96, stepped down as chair and became chairman emeritus. His son Howard Buffett, a director since 1993, now serves as non-executive chair, while Greg Abel runs the company as CEO.
Berkshire also kept buying homebuilder Lennar. It added about 1.7 million Class A shares from September 23 to 25, after buying about 2.7 million the week before. Those purchases pushed its stake above 10%. Together with the July purchase of Taylor Morrison, Berkshire is making a clear bet on U.S. housing.
Berkshire doesn’t hold earnings calls, but its Q2 filing set the tone. Operating earnings rose 16% to $12.98 billion, and the company repurchased about $4.5 billion of its stock. “Financial strength and redundant liquidity will always be of paramount importance at Berkshire,” the company wrote in its Q2 report. That line tells investors Abel will spend carefully.
Investor sentiment is calm but curious. Shareholders want proof that a post-Buffett Berkshire can deploy cash without overpaying. Going forward, the pace of buybacks and new deals will shape how the market values Abel’s leadership.
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Where Berkshire Stands Against Insurance and Banking Giants
Insurance still anchors Berkshire’s value, and GEICO’s main rival is Progressive (PGR). Progressive grew net premiums written 6% in August to $7.61 billion. Its combined ratio, which measures claims and expenses per dollar of premium, worsened to 89.3 from 83.1. Any figure below 100 means an insurer earns an underwriting profit.
That pressure connects directly to GEICO. GEICO resumed heavier advertising this year to win back market share, which intensified pricing competition. Berkshire’s underwriting earnings fell 13% in Q2, so both insurers are trading some margin for growth.
Among megacap financials, JPMorgan Chase offers a useful valuation contrast. JPMorgan trades at about 14.2x forward earnings and earned a 17.8% return on equity over the past year. Berkshire, by comparison, trades near 23.1x forward earnings with a 12.1% return on equity. So investors pay a clear premium for Berkshire’s diversification and fortress balance sheet.
Insurance float is Berkshire’s real moat. Float is premium money an insurer holds before paying claims, and Berkshire invests it. Few competitors could put $20 billion into stocks in one quarter while still holding hundreds of billions in reserve.
Gauge if Berkshire’s diversified businesses justify its premium during market volatility >>>
What’s Driving BRK.B Stock Going Forward?
Q3 results, expected around November 6, are the next checkpoint. Investors will look for buybacks to continue after about $4.5 billion in Q2. They’ll also want insurance margins to stabilize.
Deal flow is the second driver. Itochu said Berkshire may raise its stakes in Japan’s trading houses, and Berkshire already owns more than 10% of Mitsui and Marubeni. These holdings give Berkshire steady exposure to global commodities and trade.
Housing is a newer theme. Taylor Morrison and the growing Lennar stake tie Berkshire to U.S. home construction. That bet could pay off if mortgage rates fall, although Treasury yields recently hit a 19-year high.
Leadership continuity rounds out the picture. Howard Buffett’s role is to protect Berkshire’s culture, while Abel handles capital allocation. Going forward, steady execution under that structure could help the stock close the gap to its $538 high.
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Should You Invest in Berkshire Hathaway?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
