UBS Revises Berkshire Hathaway Forecast Amid Defensive Strategy Shift

UBS analyst Brian Meredith has trimmed Berkshire Hathaway's Class B share price target from $606 to $591, maintaining a buy rating. The revision reflects lower projected investment income and an absence of expected stock buybacks through 2026. Despite this, Berkshire's $347 billion cash position—including a 6.6% quarterly increase in short-term Treasury holdings to $305.5 billion—demonstrates remarkable defensive positioning.

Warren Buffett's recent moves underscore a strategic pivot toward capital preservation. Regulatory filings reveal complete exits from Citigroup ($1 billion) and partial divestments of Bank of America ($2.19 billion) and Capital One ($46.5 million) positions. These transactions coincide with Berkshire surpassing Taiwan as a U.S. debt holder, leveraging Treasury yields amid global tariff uncertainties.