Let’s examine the performance of Warren Buffett’s investment conglomerate Berkshire Hathaway.
Shares have traded sideways for much of the past year: Berkshire Hathaway’s Class A shares ( BRK.A ) rose 10.85%, while the cheaper and more accessible Class A ( BRK.B ) shares rose 10.89%, trailing the S&P 500’s 16.39% return.
Berkshire Hathaway shares fell on March 2 after the investment firm reported a decline in financial results for the December quarter, Buffett’s last as CEO.
Class B shares fell 4.9% on the day, marking their worst session since May 5, 2025, when they fell 5.1% following news that Buffett would step down as CEO.
Operating income for the fourth quarter fell 30% to $10.2 billion. Berkshire earned $7.2 billion from insurance underwriting last year, a 19.5% decline from 2024.
For the full year 2025, Berkshire projected operating income of $44.5 billion, down from $47.4 billion in 2024 but above the $37.5 billion average over the past five years.
But after the March 3 selloff, Berkshire shares rallied for several days.
As of March 6, Class A shares are down 0.93% and Class B shares are down 0.73% year-to-date, slightly eclipsing the S&P 500’s 1.54% loss.
Buffett resigned as CEO of Berkshire Hathaway. Getty Images ·Getty Images
In 1965, legendary investor Buffett took control of Berkshire Hathaway, then a struggling textile manufacturer. He turned it into an investment conglomerate and one of the most closely watched companies in the world.
Buffett stepped down as CEO in early 2026. Longtime lieutenant Greg Abel took over as CEO, and Buffett still serves as Berkshire’s chairman.
RELATED: Warren Buffett’s successor Abel sends Berkshire Hathaway’s first letter to shareholders
On March 5, Berkshire Hathaway said it was resuming its share buyback for the first time since 2024. Separately, Abel himself bought $15 million worth of stock, an amount equal to his annual after-tax salary, CNBC reported.
Abel also told CNBC that he will continue to use his entire salary to buy Berkshire shares every year.
“I commit to doing this every year,” Abel said. “My entire salary, as long as I’m CEO. We’ll file our 10-K, I’ll write the letter, and after a 48-hour cooling-off period, I’ll make the purchase.”
Many investors question whether Berkshire’s long-term value investing strategy still works in today’s volatile market. But Abel indicated the company has no plans to change course.
On February 28, Abel posted his first shareholder letter as CEO, promising that Berkshire Hathaway would not back down from investments or change its long-term strategy.
“We guard the balance sheet like a fortress, ensuring that Berkshire’s foundation is never compromised,” Abel wrote. “We maintain this financial strength by using debt prudently and prudently. Our significant liquidity enables us to meet our obligations even in the most adverse circumstances and to respond quickly when opportunities arise.”
Berkshire remains financially strong, with its cash and U.S. Treasury reserves standing at $373.3 billion, down slightly from $382 billion in the third quarter.
“While some of this capital is necessary to support our insurance operations and protect Berkshire against extreme scenarios, it also constitutes our dry powder,” Abel wrote.
“It’s time to get back to Berkshire Hathaway,” said Stephen Guilfoyle. He is a 30-year Wall Street veteran who runs Sarge986 LLC, a family-run business operation.
Guilfoyle exited his long position in BRK.B on Friday, a week before the May 2 annual meeting, because he “felt the inevitable.”
RELATED: Costco Takes Big Step to Address Members’ Biggest Complaints
“The stock rose to $542.07 that day. Buffett made his famous announcement on Saturday. The stock has never fully recovered,” Guilfoyle noted in a note to TheStreet Pro.
But now, he is warming to the stock, based on improving technical signals.
“It is not difficult to see the basing pattern that has been in place since early November,” Guilfoyle wrote, referring to a “rectangle” formation that followed a double-high bearish reversal.
He noted that Berkshire shares are now “trying to retrace their 50-day SMA after retrieving the 200-day SMA”, adding that holding both levels could encourage fund managers who recently exited the stock to reconsider taking long positions.
Apple (AAPL) – 22.60%
American Express (AXP) – 20.46%
Bank of America (BAC) – 10.38%
Coca-Cola (KO) – 10.20%
Chevron (CVX) – 7.24%
Moody’s (MCO) – 4.60%
OXYGEN PETROLEUM (OXY) – 3.97%
Wood (CB) – 3.90%
Kraft Heinz (KHC) – 2.88%
Alphabet (GOOGL) – 2.04%
Guilfoyle estimates that if shares hold the $494 pivot level, the stock will move to $568, which would surpass the November high.
Still, the veteran trader said he remains cautious about taking an outright position and instead prefers to use options to manage risk.
“Interested in putting some money into a stock you don’t really believe in anymore? Me neither,” he wrote, suggesting a short-term bull call spread as a way to participate in potential pullbacks.
Related: Apple’s latest product is a game changer
This story was originally published by The Street on March 7, 2026, where it first appeared in the Investing section. Add TheStreet as a Favorite Source by clicking here.
