Investing Simplified - Professor G on $BRK.B (Nov 5, 2026)
Berkshire Hathaway is a hold, not a current buy: operating profit jumped 16% to nearly $13 billion last quarter, with energy up 27% and manufacturing/retail services up 24%. After rising about 7% this year and 7% last month to an all-time high, it is not exactly cheap; analyst targets are $542-$556, UPS $628, Morningstar fair value $510, and history includes four 37%-59% declines. The speaker will let it grow but has paused monthly purchases and will not add today.
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The first position is actually my largest holding in my portfolio of all individual stocks, which is Berkshire Hathaway, BRKB. It is trading at around $540 as I record this, slightly below its record close on October 26.
The stock has risen by about 7% this year and 7% in the last month alone, including a 10-day winning streak. Last September, I told you all that Berkshire Hathaway had been trading sideways for some time, and that I was buying it heavily.
Well, this patience is starting to pay off. So why is Berkshire on the rise while so many other companies are struggling? First, investors look for security. Between October 5 and 20, the SOXX Semiconductor ETF fell by about 15%, while Berkshire continued its upward trend.
In addition, two major companies within its holdings, Chevron and Occidental, rose by more than 10% last month thanks to higher oil prices. Secondly, the business is achieving good results.
Operating profit jumped 16% to nearly $13 billion last quarter, with the energy sector rising 27% and manufacturing and retail services rising 24%. Berkshire also has approximately $177.5 billion in insurance liquidity available for investment.
Third, Greg Abel employs cash flow. Berkshire repurchased $4.5 billion worth of shares, invested $10 billion in Alphabet, and acquired Taylor Morrison for about $6.8 billion. So, in my opinion, is Berkshire still a buy option now?
Well, considering the average analyst targets, they range from $542 to $556. Although UPS expects it to reach $628. Morning Star estimates the fair value of the stock at just $510.
So, after this rise, Berkshire is not exactly cheap. And remember, even Berkshire is not immune to collapses. Buffett himself documented four separate declines ranging between 37% and 59% in Berkshire's history.
Even the best investments experience sharp fluctuations. Therefore, my decision regarding Berkshire at the moment is to keep. It has been one of the stocks I buy every month for a long time.
But after this recent surge, I'm content with what I have. I'm happy to let it continue to grow, but I won't be adding any more today because it's literally at its all-time high.
I will hold onto Berkshire Hathaway shares, as I paused my monthly purchases after this surge, but I am pleased to see them rising.
What this channel has said about $BRK.B
Investing Simplified - Professor G has 2 calls on this stock; only the adjacent ones are shown.