Berkshire Hathaway Inc. (NYSE: BRK.A) has increased 17% in the last 12 months, and has continued strongly since the start of this year.
Recent financial performance has presented a mixed picture. The first quarter of 2025 saw a 14% drop in operating earnings, totaling $9.64 billion. This decline was significantly influenced by a 48.6% decrease in insurance underwriting profits, exacerbated by substantial losses from Southern California wildfires.
This highlights the vulnerability of Berkshire’s insurance operations to unforeseen events and the potential for volatility in earnings. Furthermore, Buffett himself has cautioned about the uncertainty stemming from tariffs and geopolitical risks, which could further dampen future profits. These factors contribute to a cautious outlook among some analysts.
YOUR CAPITAL IS AT RISK
Berkshire Hathaway Inc. Share Price Targets
Analysts have set a 12-month price target for Berkshire Hathaway with an average expectation of $769,899.75, ranging from a high of $887,099.00 to a low of $727,000.00.
The current consensus average target suggests a potential increase of 5.11% from the most recent trading price.
Our View: You would be wise to consider the views of the analyst community in conjunction with the fundamentals surrounding the company to properly determine a value for the stock that you feel is appropriate.
At the upper end of analysts estimates it would be easy to get carried away with the potential gains on show, but the flipside is that these targets can shift within the blink of an eye and that the view of analysts is very dynamic.
If you are considering swing trading, or day trading Berkshire Hathaway shares that is a separate consideration, but for those planning for the long haul, fundamental analysis is king.
Berkshire Hathaway Inc. – The Basics Driving The Business
Berkshire Hathaway, a giant in the financial world, operates as a holding company with a diverse portfolio spanning insurance, utilities, energy, freight rail transportation, manufacturing, services, and retailing. Its success has been inextricably linked to the legendary Warren Buffett, whose investment acumen and long-term vision have propelled the company to unprecedented heights.
With the announcement of Buffett’s impending retirement as CEO at the end of 2025, after a remarkable 60-year tenure, the transition to Greg Abel marks a pivotal moment. The market is naturally assessing the potential impact on Berkshire’s future performance and strategic direction.
The news of Buffett’s retirement, while anticipated given his age, has introduced a degree of uncertainty. Abel, the current Vice Chairman, has been groomed for the role, but stepping into Buffett’s shoes is an undeniable challenge. Buffett’s presence has been more than just that of a CEO; he embodies the company’s values, investment philosophy, and risk management approach.
His planned attendance at the 2026 shareholder meeting, albeit without participation in the Q&A session, suggests a gradual handover and a continued advisory role, which should reassure investors to some extent. However, the market will be closely monitoring Abel’s leadership style and strategic decisions in the coming years.
