Berkshire Hathaway Stock (BRK.B) Tumbles on Earnings Miss and Apple Stake Jitters

Buffett's empire stumbles as earnings disappoint and Apple exposure rattles investors.

The Oracle's Crystal Ball Cracks

Berkshire Hathaway shares took a hit after quarterly results failed to impress Wall Street. The conglomerate's massive Apple position—once hailed as a masterstroke—now weighs heavily on investor sentiment. Markets punished the stock as earnings came in below expectations.

Apple's Shadow Looms Large

Concerns mount over Berkshire's substantial Apple stake as the tech giant faces its own headwinds. The dependency on a single stock—even one as dominant as Apple—highlights the concentration risk in Buffett's otherwise diversified portfolio. Some analysts question whether the legendary investor's golden touch is fading.

Traditional finance showing its age—meanwhile, decentralized assets continue operating 24/7 without earnings calls or shareholder panic. The old guard struggles while digital assets redefine value storage and transfer.

Another quarter, another reminder that even the smartest traditional investors can't escape market gravity—while crypto markets create their own orbit.

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While the financial results for this year’s third quarter were predictably solid, investors remain uncertain about the direction of Berkshire Hathaway once Warren Buffett steps down as CEO at year’s end following 60 years at the company’s helm.

Some analysts also take issue with Berkshire’s cash pile, which continues to swell and reached a record $381.6 billion at the end of September this year. Analysts and investors are calling on Berkshire Hathaway to put more of its cash to work.

Berkshire announced in September that it is buying Occidental Petroleum’s (OXY) petrochemical unit, OxyChem, for $9.7 billion in cash, its biggest acquisition in three years. Still, the OxyChem deal barely dented the company’s cash hoard.

Apple Stake

There is also speculation that Buffett, or one of his lieutenants, may have trimmed Berkshire Hathaway’s massive stake in consumer electronics giant Apple (AAPL) during the third quarter. In its latest earnings report, Berkshire said the cost basis of its consumer products equity holdings fell by $1.2 billion from the year’s second quarter.

That category is dominated by the giant Apple position, which is currently Berkshire’s largest at 280 million shares valued at $75.18 billion based on the current price of AAPL stock. Apple comprises 24% of Berkshire’s equity portfolio and remains the holding company’s single largest investment.

It won’t be known if Buffett actually reduced the Apple stake until Berkshire Hathaway’s next 13F regulatory filing is released in mid-November.

Is BRK.B Stock a Buy?

Only a couple of analysts currently offer a rating and price target on Berkshire Hathaway’s more affordable Class B stock. So instead, we’ll look at the shares’ three-month performance. As one can see in the chart below, shares of BRK.B have risen 4.01% in the last 12 weeks.