Berkshire Hathaway Rises on Record Cash Pile and CEO Transition Plans
Berkshire Hathaway (BRK.B) shares gained 0.22% to $504.34 Friday, buoyed by a $381 billion cash reserve and clarity on Greg Abel’s eventual succession to CEO. The conglomerate’s Q3 operating income surged 34%, driven by insurance underwriting and energy investments.
Warren Buffett’s capital allocation strategy remains cautious, with the cash hoard reflecting limited high-conviction opportunities in overvalued markets. Portfolio adjustments show increased exposure to tech and housing sectors, maintaining Berkshire’s disciplined valuation approach.
Analysts diverge on fair value estimates—discounted cash FLOW models suggest 30% upside potential, while conservative valuations remain muted. The stock trades at 16.2x P/E, slightly premium to financial sector peers but below mega-cap tech multiples.