STEW

The Week

Berkshire Hathaway B shares slipped 1.63% this week to close at $495.82, slightly underperforming the S&P 500 which fell 1.43% — a relative gap of roughly 0.2 percentage points. The week traced a choppy downward path: Monday (17 Aug) opened at $504.45 and slid to $498.23; a brief Tuesday bounce to $502.96 was followed by a Wednesday high of $507.07, the week’s peak, before the stock reversed to $499.62. Thursday and Friday saw consecutive declines, with the low touching $495.68 before settling at $495.82. The weekly range was a modest 2.26%, and volume ran about 14.4% below the 60-day median, signalling cautious sentiment.

Key Events

The week was dominated by the aftermath of Berkshire’s Q2 13F filing. The report revealed that Greg Abel broke the company’s 14-quarter net-selling streak, aggressively adding to Alphabet — now the third-largest holding — while also boosting Delta Air Lines and reducing Bank of America for an eighth straight quarter. The pivot was widely read as a defining moment for the post-Buffett era: a portfolio tilting decisively towards AI-linked names.

Three secondary threads spun off from this core narrative. First, the Bill & Melinda Gates Foundation trimmed its Berkshire stake by $800 million in the same quarter, raising questions about conviction among long-time shareholders. Second, billionaire David Tepper disclosed a short position not only in Apple but also in Berkshire itself, pitting his view directly against Abel’s buying. Third, the firm’s $175 billion-plus cash pile continued to draw scrutiny — some framed it as a warning on stretched equity valuations, while others argued it simply reflects disciplined patience for better entry points.

Analyst Ratings

As of 20 August, four analysts cover the stock: two rate it buy and two rate it hold, with no sell or underweight ratings. The consensus recommendation is buy, with a consensus target price of $547.67 — about 10.5% above the current level. Individual targets range from $510.00 to $604.00, a roughly 18% spread that points to a meaningful divergence in how analysts see the upside. Within the ‘Investment Services and Holding Companies’ industry, Berkshire ranks 3rd out of 5 peers, placing it in the upper-middle tier.

The Week Ahead

A batch of US housing data will take centre stage next week: FHFA home price indices, the Case Shiller 20-city composite, and new home sales figures are all due. The releases will be closely watched for signs of how high rates are feeding through to the property market — a sector where Berkshire has placed significant bets. Tuesday’s consumer confidence reading and new home sales annualised rate will add further colour to the resilience narrative of the US economy.

In Short

Berkshire B shares pulled back moderately this week against a backdrop of intense debate over the 13F portfolio shift. The dip came on lower volume, suggesting the market is pausing to digest the new positioning rather than rushing to reprice. Valuations, at 12.5x earnings and 1.4x book, do not appear stretched. The latest session’s fund-flow snapshot shows net buying from large-lot money, though mid and small participants were split, offering no clear directional signal. The analyst community leans positive, with a consensus target roughly 10% above spot, but the wide range hints at genuine uncertainty. The next catalyst is likely to be whether Abel’s AI-heavy bets begin to deliver in upcoming earnings, and whether macro data keeps the case for cash alive.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.