is berkshire hathaway stock a good buy

Is Berkshire Hathaway Stock a Good Buy?

This guide directly addresses the query "is berkshire hathaway stock a good buy" for investors seeking a clear, evidence-based assessment. You will get a concise company overview, recent corporate governance developments, the key business segments that drive earnings, balance-sheet and capital-allocation context, valuation perspectives from major research outlets, a balanced list of bullish and bearish points, practical buying considerations (BRK.A vs BRK.B, fractional shares, taxes), and an FAQ. The article references public research and news through late 2025 so readers understand the time context.

Note: This is neutral informational content, not investment advice. Always check current prices, filings, and your own financial situation before making investment decisions.

Company overview

Berkshire Hathaway is a diversified U.S. holding company known for its insurance businesses, large equity portfolio, and an array of wholly owned operating companies across railroads, utilities & energy, manufacturing, retail, and services. The company issues two publicly traded share classes: BRK.A (high-price, greater voting rights) and BRK.B (lower-priced share class designed for broader retail ownership). When readers ask "is berkshire hathaway stock a good buy," they generally mean either BRK.A or BRK.B (most retail investors consider BRK.B).

Berkshire’s roots and reputation are closely tied to Warren Buffett’s multi-decade stewardship. The firm’s value proposition historically relied on acquiring or backing durable businesses and allocating capital from insurance float and operating profits into attractive investments.

Recent developments and corporate governance

As of December 30, 2025, according to The Motley Fool, the investment community has been focused on a planned CEO transition at Berkshire Hathaway: longtime vice chairman Greg Abel is set to take over as CEO beginning in 2026 while Warren Buffett will remain chairman in a reduced operational role. This leadership change is material to the investment thesis because Berkshire’s historical performance and market perception were influenced by Buffett's capital-allocation reputation.

Other notable, timely events investors asked about in late 2025 include:

• Berkshire’s Q4 2024 13F filing showed the company sold positions in S&P 500 ETFs late in 2024 — a move analysts highlighted when assessing management’s market views and allocation choices.
• Berkshire maintained a very large cash and cash-equivalents balance through 2025, which has shaped the debate about acquisition prospects and repurchase policy.

These developments affect the question "is berkshire hathaway stock a good buy" because they influence perceived execution risk, capital deployment strategy, and short-to-medium-term valuation dynamics.

Key business segments and earnings drivers

Berkshire’s consolidated results come from multiple segments. Understanding each helps answer whether "is berkshire hathaway stock a good buy" for a particular investor.

Insurance operations

Insurance is the cornerstone of Berkshire’s model. Major insurance subsidiaries generate underwriting profit and, crucially, insurance float — premiums received today that will be paid out in the future. Float can be a low-cost source of capital when underwriting is disciplined. Analysts often point to float and underwriting margins when assessing Berkshire’s ability to fund acquisitions and investments without issuing equity.

Underwriting results vary by cycle, but the long-term value to Berkshire lies in disciplined underwriting and investing the float. When investors wonder "is berkshire hathaway stock a good buy," a common bullish point is the strategic advantage of this float.

BNSF / transportation

BNSF Railway (one of the largest North American freight rail operators) is a major operating asset. Freight volumes, commodity demand, and pricing flexibility influence BNSF’s operating income. Analysts have noted periods of weaker railroad performance due to changing commodity flows or recessionary pressure in industry demand. Weakness or strength at BNSF can materially affect Berkshire’s consolidated results and thus factor into the valuation debate.

Berkshire Hathaway Energy (utilities & renewables)

Berkshire Hathaway Energy (BHE) contributes stable, regulated-style earnings and a growing renewables business. Utility subsidiaries are sensitive to regulatory decisions, interest-rate environments (which affect financing costs), and legislation tied to energy policy. Investors weighing "is berkshire hathaway stock a good buy" should consider how regulatory returns and capital expenditure plans at BHE affect long-term cash generation.

Manufacturing, retailing, and services

Berkshire owns many industrial and consumer-facing businesses — from machinery and components to retail chains and service companies. These units can be cyclical and more sensitive to economic conditions than insurance or utilities. They provide diversification but also introduce variability to quarterly results.

Public-equity portfolio

Berkshire’s large public-equity holdings (material stakes in several blue-chip U.S. companies) form a significant portion of intrinsic value and introduce market-linked volatility. Concentrated equity positions can add or subtract value substantially as markets move. When asking "is berkshire hathaway stock a good buy," many analysts look both to operating results and changes in the fair value of the equity portfolio.

Balance sheet and capital allocation

Berkshire has historically maintained a large cash-and-equivalents balance. As of late 2025, multiple analyst write-ups noted a multi-hundred-billion-dollar cash pile. That cash gives Berkshire optionality to buy businesses, invest in public equities, add to share repurchases, or earn interest in short-term Treasuries.

Capital-allocation decisions under Buffett emphasized buying high-quality businesses at fair prices, opportunistic public-equity purchases, and share repurchases only when shares trade below intrinsic value. Recent actions — including selling S&P 500 ETFs in late 2024 and continuing to hold significant cash — have been interpreted by some as indicating a cautious stance toward an expensive market environment.

Share repurchases have historically been modest relative to the balance sheet but gained attention as a way to return capital. When readers ask "is berkshire hathaway stock a good buy," the answer often hinges on whether Berkshire will deploy cash into value-accretive acquisitions or accelerate buybacks under new management.

Valuation and market metrics

Valuing Berkshire requires combining operating-company cash flows and the market value (or fair value estimate) of the public-equity portfolio. Investors commonly use several approaches.

Common valuation measures

• Price-to-earnings (P/E) can be distorted for Berkshire because of insurance accounting and large fluctuations in reported investment gains or losses.
• Price-to-book (P/B) is another common metric, though book value does not fully capture intangible returns and economic goodwill embedded in operating businesses.
• Sum-of-the-parts (SOTP) or intrinsic-value estimates: many analysts discount forecasted cash flows for operating subsidiaries and add expected realizable value of the equity portfolio.
• Discounted cash flow (DCF) focuses on long-term free cash flow generation from businesses and investments.

These measures each have limits for a conglomerate with large investment holdings. Analysts often present a range of fair values rather than a single precise number.

Published fair-value estimates and analyst views

As of December 2025, notable research views included:

• Morningstar published fair-value and valuation commentary evaluating whether Berkshire shares were buy, sell, or fairly valued following earnings releases. Morningstar’s approach generally emphasizes long-term intrinsic value and sometimes identifies Berkshire as attractively priced on a multi-year horizon.

• Motley Fool pieces through late 2025 debated the company’s near-term attractiveness given management transition and market conditions. Some Motley Fool articles (mid- to late-December 2025 and earlier in November 2025) argued there were reasons to consider the stock attractive now, while others highlighted uncertainties tied to leadership change and the equity portfolio’s volatility.

• Webull / Simply Wall St commentary examined whether Berkshire was a bargain at prevailing prices and evaluated PE ratios, ROE, and fair-value gaps. Zacks provides style scores and model-driven views for BRK.B that investors use as one input among many.

Different outlets may characterize the shares as "slightly undervalued," "fairly valued," or "buyable" depending on modeling assumptions and the time horizon.

Historical performance vs. market

Berkshire under Buffett delivered an exceptional long-term track record, compounding shareholder value across decades. Past performance is informative for cultural and capital-allocation reasons but is not a guarantee of future returns. When people once again ask "is berkshire hathaway stock a good buy," they often cite historical returns as a reason to consider the company’s long-run prospects — while acknowledging size and succession make future compounding harder.

Investment thesis — reasons to consider buying

When evaluating "is berkshire hathaway stock a good buy," common bullish arguments include:

• Diversification across industries reduces single-sector risk and provides multiple, complementary earnings streams.
• Insurance float provides a durable, relatively low-cost source of investable capital.
• Large cash balance gives management optionality to make acquisitions when prices are attractive.
• A history of disciplined capital allocation and value-focused acquisitions under Buffett and his lieutenants provides institutional confidence.
• Some analysts and data services considered Berkshire shares modestly undervalued or fairly valued relative to intrinsic estimates in late 2025.

These points support the argument that Berkshire can be an attractive long-term holding for investors seeking exposure to an experienced capital allocator and a wide suite of operating businesses.

Risks and counterarguments

The primary counterarguments to "is berkshire hathaway stock a good buy" include:

• Management transition risk: Warren Buffett’s step-back and Greg Abel’s formal succession in 2026 introduce execution risk, even if Abel has been groomed for the role. Markets typically reprice uncertainty tied to leadership changes.
• Size constraints: Berkshire’s very large asset base makes it harder to find acquisitions that meaningfully move the needle on growth and returns.
• Segment-specific underperformance: BNSF or other industrial subsidiaries can face cyclical headwinds; weaker performance in material segments can dampen consolidated earnings.
• Regulatory risk: Utility and energy returns depend on regulatory regimes and can be affected by policy changes.
• Market-linked volatility via the public-equity portfolio: large equity positions can swing intrinsic value with market moves.
• Valuation risk: If shares trade near fair value as per some outlets, future returns might be limited absent value-accretive deals.

These risks weigh into whether "is berkshire hathaway stock a good buy" for a particular investor, especially if one has a shorter time horizon or low tolerance for volatility tied to marketable securities.

How to decide if BRK is a good buy for you

Consider this checklist when answering "is berkshire hathaway stock a good buy" relative to your situation:

• Time horizon: Berkshire’s strengths are most relevant to long-term investors (multi-year to multi-decade).
• Risk tolerance: Are you comfortable with variation from portfolio holdings and equity-markets exposure within Berkshire’s public-equity stake?
• Desire for diversification: Do you want a single holding that spans insurance, utilities, rail, manufacturing, retail, and a public-equity portfolio?
• View on capital allocation: Do you trust current management to allocate capital well after the 2026 transition?
• Valuation: Compare current market price to published fair-value ranges (Morningstar, Zacks, independent DCFs). If you require a margin of safety, confirm the current price offers one.
• Income needs: Berkshire does not pay a regular dividend; if you need current income, Berkshire may not meet that need without selling shares or relying on option overlays.

Answering these points helps determine whether "is berkshire hathaway stock a good buy" for you specifically.

Practical considerations for buying

BRK.A vs BRK.B differences

BRK.A shares trade at a much higher per-share price and carry greater voting rights; BRK.B was created to allow smaller investors to access ownership. For most retail investors, BRK.B is the practical choice. Institutional and very wealthy investors might hold BRK.A for voting interest or other portfolio reasons.

When addressing "is berkshire hathaway stock a good buy," most retail-focused commentary implicitly refers to BRK.B.

Fractional shares and brokerage access

If you prefer a small initial position, many brokerages offer fractional-share trading. For investors focused on a platform with Web3 wallet support and crypto-to-fiat features, consider Bitget’s trading and wallet services as a centralized venue that offers stock exposure and user-friendly fractional options — check Bitget’s available product list and local regulatory coverage before trading.

Taxes and holding considerations

Berkshire Hathaway generally does not pay regular dividends. Gains are realized only when you sell shares. Long-term capital gains tax treatment typically applies to shares held more than one year in many jurisdictions. Investors seeking income should note Berkshire’s dividend policy when deciding "is berkshire hathaway stock a good buy."

Always consult a tax professional about your specific situation.

Analyst and market sentiment summary

Across the filtered sources through late 2025, sentiment toward Berkshire varied by analyst framework and time horizon:

• Some Motley Fool articles in November and December 2025 highlighted reasons to buy now (cash on the balance sheet, disciplined management) while noting succession as a watch item.
• Morningstar’s coverage used fair-value assessments and often emphasized buy-and-hold logic for investors aligned with long-term intrinsic value thinking.
• Zacks and Webull / Simply Wall St provided model-driven style scores and fair-value metrics that sometimes showed the stock near fair value but with upside under certain assumptions.

Overall, the market reflected a mix of cautious optimism about long-term fundamentals and near-term uncertainty tied to leadership transition and valuation levels. This mixed sentiment is central to answering "is berkshire hathaway stock a good buy" depending on your modeling assumptions and time horizon.

Frequently asked questions

Q: Does Berkshire Hathaway pay a dividend?

A: No regular dividend. Berkshire has historically favored reinvesting earnings and making acquisitions or repurchases rather than paying a regular cash dividend.

Q: Which class should I buy — BRK.A or BRK.B?

A: Most retail investors choose BRK.B because it is far more affordable per share and provides proportional economic ownership. BRK.A carries stronger voting rights and a much higher per-share price.

Q: How important is Warren Buffett’s role going forward?

A: Buffett’s stewardship shaped Berkshire’s culture and capital allocation. With Greg Abel scheduled to assume the CEO role in 2026, succession is an important variable. Abel has worked alongside Buffett for years, but markets pay close attention to execution under new leadership.

Q: Did Berkshire sell S&P 500 ETFs and why does it matter?

A: Berkshire’s Q4 2024 13F showed sales of S&P 500 ETFs late in 2024. Analysts noted this move as evidence management was cautious about broad-market valuations and preferred holding cash or other investments. The decision illustrates tactical allocation choices but does not, by itself, dictate whether Berkshire is a good long-term buy.

See also

• Value investing principles
• Warren Buffett and Berkshire Hathaway history
• Insurance float explained
• Sum-of-the-parts valuation methods

References

(Selected research and reporting through late 2025 — titles and sources; readers should consult the cited outlets for the full pieces and updated data.)

• "Tomorrow Is Warren Buffett's Last Day. Is Berkshire ..." — The Motley Fool, reported December 30, 2025.
• "Is Berkshire Hathaway Stock a Buy Now?" — The Motley Fool, reported December 14, 2025.
• "1 Reason Now Is a Great Time to Buy Berkshire Hathaway Stock" — The Motley Fool, mid- to late-November and early-December 2025 pieces.
• "3 Warren Buffett Stocks to Buy and Hold Forever" — Morningstar (2025 coverage date varies by article).
• "After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?" — Morningstar (2025 coverage).
• "Should I buy Berkshire Hathaway (BRK.B)" — Zacks research page (BRK.B style and score data, 2025).
• "Is Berkshire Hathaway Still a Bargain..." — Webull / Simply Wall St analysis (2025 commentary).

Final notes and timing context

As of December 30, 2025, the major public outlets cited above framed Berkshire Hathaway’s outlook around two central themes: a high cash balance and a scheduled leadership transition in 2026. The question "is berkshire hathaway stock a good buy" therefore depends meaningfully on your investment horizon, your assessment of management’s ability to allocate capital post-transition, and whether current market prices present a margin of safety relative to reasonable intrinsic-value estimates.

For readers: if you plan to act, review the latest quarterly filings, check up-to-date analyst fair-value updates, and consider using Bitget’s trading and wallet tools if they fit your jurisdiction and needs. This will help you make a decision aligned with your time horizon, risk profile, and tax situation.

Further exploration: search the most recent 10-Q/10-K filings, analyst updates from Morningstar/Zacks, and any Berkshire shareholder letters to assess up-to-the-minute data before trading.