Berkshire Hathaway B Stock Performance: What Most People Get Wrong

Honestly, looking at the numbers for berkshire hathaway b stock performance over the last year or so can feel a bit like watching a marathon runner who decided to stop for a sandwich while the rest of the pack kept sprinting.

The S&P 500 has been on an absolute tear, up about 20% in 2025. Meanwhile, Berkshire’s B shares (BRK.B) put up a more modest 9.2%. If you’re just looking at the green and red bars on a Robinhood chart, you might think the magic is gone. But that’s exactly where most people get it wrong.

The $381 Billion Elephant in the Room

As of early 2026, Berkshire is sitting on a cash pile so big it’s basically its own weather system. We’re talking $381.7 billion. To put that in perspective, Warren Buffett—who just retired as CEO on December 31, 2025—holds more T-bills than the actual Federal Reserve.

Why does this matter for the stock price?

Because cash is a drag when the market is mooning. When everyone else is riding the AI wave, Berkshire is holding a giant bag of cash that "only" earns interest. It’s a defensive fortress. When the market gets shaky, that’s when the berkshire hathaway b stock performance usually starts to shine. It’s the ultimate "sleep well at night" stock, even if it won't make you rich overnight in a bull market.

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The Greg Abel Era Begins

January 1, 2026, marked the official start of the post-Buffett era. Greg Abel is now the guy in the big chair. For decades, the "Buffett Premium" was a real thing—people paid extra just because they trusted the Oracle. Now, the market is trying to figure out if Abel has that same Midas touch.

Most analysts, like Greggory Warren over at Morningstar, aren't panicking. They’ve kept their fair value estimate for the B shares right around $510. Early January 2026 trading has the stock hovering near $497, which suggests it’s slightly undervalued.

Abel isn't Buffett, and he shouldn't try to be. He’s an operations guy. He’s the one who whipped the energy and railroad divisions into shape. The word around Omaha is that he might be more aggressive about deploying that massive cash hoard than Buffett was in his final years.

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What’s Actually Driving the Price Right Now?

If you want to understand the berkshire hathaway b stock performance, you have to look past the stock portfolio and into the "engine room" of the actual businesses they own.

1. Insurance is Printing Money: GEICO had a massive turnaround. In 2025, they hit a combined ratio of 84.3%. In insurance speak, that's incredible. It means they're keeping a lot more of every dollar in premiums than they used to.
2. The OxyChem Deal: On January 2, 2026, Berkshire finished buying OxyChem for $9.7 billion. It’s a classic Berkshire move—buying a boring, cash-generating industrial beast that nobody on TikTok is talking about.
3. The Tech Pivot: Believe it or not, Berkshire recently dropped $4.9 billion into Alphabet (Google). There’s a growing sense that Abel might lean harder into tech than Buffett ever did. If they start buying more AI-adjacent companies, the stock’s "old economy" reputation might finally get an update.

The Dividend Rumor Mill

This is the big one.

For sixty years, Buffett refused to pay a dividend. He figured he could grow that money better than you could. But with nearly $400 billion in the bank and interest rates starting to dip, the pressure is on.

Some folks at The Motley Fool are betting that 2026 is the year Berkshire finally initiates a dividend. If that happens, expect a huge influx of new investors who only buy dividend-paying stocks. It would be a fundamental shift in how the stock is valued.

Historical Context: BRK.B vs. The World

Let's get real for a second. Over the last decade, Berkshire has actually trailed the S&P 500 slightly. Its book value grew at about 12.5% compared to the index's 14.8%.

That sounds like a loss until the market crashes.

In 2022, when the S&P was down almost 20%, Berkshire was actually up about 4%. That’s the trade-off. You give up some of the "upside" in the crazy years so you don't lose your shirt in the "down" years.

Currently, the stock has a Price-to-Book ratio of about 1.52. Historically, anything under 1.3 was a "screaming buy" for Buffett to start repurchasing shares. We aren't quite there yet, but it’s far from overpriced.

Actionable Steps for Your Portfolio

If you’re looking at berkshire hathaway b stock performance as a potential buyer, here is how to play it:

• Watch the $510 Level: This is the consensus fair value. If the stock dips toward $470—which it did a few times in 2025—it has historically been a great entry point.
• Monitor 13F Filings: The mid-February filing will be the first one that gives us a glimpse into Abel's solo decision-making. Look for moves in tech or potentially a play in silver, which some experts think is on the horizon.
• Evaluate Your Risk: This isn't a stock for "get rich quick" types. It's a cornerstone asset. If you need a hedge against a potential tech bubble burst in late 2026, this is probably the best place to hide.
• Set a Dividend Alert: Keep an eye on the quarterly earnings calls. If Abel even hints at a capital return policy change, the stock will likely re-rate higher instantly.

The "New Berkshire" is still the "Old Berkshire" at its core—a collection of world-class businesses managed by people who think in decades, not days. The performance might look "boring" compared to a semiconductor stock, but in the world of investing, boring is often exactly what keeps you wealthy.

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Next Steps for You: Check the current P/B ratio on a site like Morningstar. If it's trending toward 1.4 or lower, it's statistically one of the safest value plays in the current market.