Berkshire Hathaway (BRK.B) Stock: Is Now the Time to Buy?

Berkshire Hathaway, the conglomerate made famous by legendary investor Warren Buffett, continues to be a focal point for investors seeking stability and long-term value. After a period of strong performance, the company’s stock has seen some consolidation.

This comes as Berkshire’s cash pile has swelled to a record $189 billion, leaving market watchers to speculate on the firm’s next major move and question whether the current stock price represents a compelling entry point.

In its latest earnings report, Berkshire Hathaway revealed a significant increase in its cash and short-term Treasury holdings. This massive liquidity provides unparalleled flexibility, allowing the company to pounce on large-scale acquisition opportunities should they arise, or to ramp up its share repurchase program.

Buffett has historically been patient, waiting for what he calls “fat pitches”; attractively priced, high-quality businesses. The current market environment, however, has made finding such deals challenging, leading to the ballooning cash reserve.

The company’s operating earnings remain robust, driven by its diverse portfolio of wholly-owned businesses, including insurance giants like Geico, the BNSF Railway, and Berkshire Hathaway Energy. These segments provide a steady stream of cash flow that is largely insulated from the whims of the stock market. However, the performance of its massive equity portfolio, heavily concentrated in Apple (AAPL), continues to have a significant impact on its reported net earnings due to accounting rules that require marking unrealized gains and losses to market.

The company itself confirmed that it has resumed repurchasing its own stock for the first time in nearly two years, signalling management’s confidence in the conglomerate’s valuation amid a significant leadership transition. Class B shares rose 1.27% while Class A shares climbed 1.34% as markets responded positively to the capital allocation decision.

Prior to this announcement, Berkshire Hathaway had not repurchased any shares since May 2024, the longest period of inactivity since the company expanded its buyback authority in 2018. The resumption of share repurchases may alleviate concerns among shareholders regarding the company’s capital allocation strategy and its substantial cash holdings.

In a regulatory filing, Berkshire stated that it commenced repurchasing shares of both its Class A and Class B common stock on March 4, 2026, under its longstanding policy that permits buybacks when management believes the repurchase price falls below the company’s intrinsic value, conservatively determined.

The resumption of the buyback program comes as Greg Abel settles into his role as chief executive following Warren Buffett’s departure.

While the company has a strong bench of managers, the “Buffett premium” – the confidence the market places in his capital allocation genius – is a factor that is difficult to quantify. For now, the company continues its strategy of buying back its own shares when they trade below what Buffett considers their intrinsic value, a move that directly benefits long-term shareholders.

Ultimately, investing in Berkshire Hathaway is a bet on the enduring strength of its underlying businesses and the continuation of a rational, long-term capital allocation strategy. While the challenges of its large size and future leadership are real, its fortress-like balance sheet and portfolio of high-quality assets offer a defensive appeal. Investors must weigh the potential for steady, compounded growth against the possibility that its best days of outsized returns are in the past.