Berkshire Hathaway B (BRK.B - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned -0.6% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Insurance - Property and Casualty industry, to which Berkshire Hathaway B belongs, has gained 2.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Berkshire Hathaway B is expected to post earnings of $5.24 per share for the current quarter, representing a year-over-year change of +1.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $20.87 points to a change of +1.2% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $21.63 indicates a change of +3.6% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Berkshire Hathaway B.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Berkshire Hathaway B, the consensus sales estimate for the current quarter of $95.3 billion indicates a year-over-year change of +3%. For the current and next fiscal years, $385.6 billion and $404.9 billion estimates indicate +3.8% and +5% changes, respectively.
Last Reported Results and Surprise HistoryBerkshire Hathaway B reported revenues of $93.68 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $5.25 for the same period compares with $4.47 a year ago.
Compared to the Zacks Consensus Estimate of $95.1 billion, the reported revenues represent a surprise of -1.5%. The EPS surprise was +8.92%.
Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Most people who live to age 95 retired decades earlier. So when Warren Buffett announced last year that he planned to step down as CEO of Berkshire Hathaway (BRKA 0.15%) (BRKB 0.40%), some assumed that he wouldn't be very active in the company after the transition. After all, he was turning Berkshire over to a capable executive, Greg Abel, whom he respected and trusted.
Many (including me) thought that Abel was the key force behind Berkshire significantly boosting its stake in Google parent Alphabet (GOOG 1.46%) (GOOGL 1.39%) in the first half of this year. But Buffett recently revealed that he personally made the decision. Here's why that changes everything for Berkshire Hathaway shareholders.
Image source: The Motley Fool.
Correcting a past mistake Buffett told Berkshire Hathaway shareholders at their annual meeting in 2017 that he made a mistake by not investing in Google years earlier. On the Monday following that meeting, the legendary investor stated in an interview with CNBC that he should have appreciated the strength of the company's advertising business because Berkshire's GEICO business spent a lot of money on Google ads.
In the months before he passed the baton as CEO to Abel, Buffett corrected his past mistake. Berkshire initiated a new position in Alphabet in the third quarter of 2025, buying around 17.8 million shares.
But that was just the beginning. In the first quarter of this year, Berkshire more than doubled its stake in Alphabet. On June 1, 2026, Alphabet announced that Berkshire had agreed to invest another $10 billion in a private placement.
As I mentioned earlier, many observers assumed that Abel orchestrated the move and was repositioning Berkshire's portfolio to be more tech-oriented. However, when CNBC's Becky Quick asked Buffett last week about the big investments in Alphabet this year, he replied, "I initiated it."
Today's Change
(
-1.39
%) $
-4.88
Current Price
$
347.11
Why it's such a big deal Is it an exaggeration to say that Buffett's personal involvement in spearheading Berkshire's big investment in Alphabet changes everything? I don't think so -- at least, not for Berkshire shareholders.
Most importantly, recent transactions confirm that one of the greatest investors of all time remains actively engaged in deploying Berkshire's massive capital. If this isn't reassuring to Berkshire shareholders, it should be.
If Buffett were only going into the office each day and making small investments, I wouldn't think much of it. However, Alphabet is now the fifth-largest holding in Berkshire's portfolio. Buffett isn't merely involved in small transactions; he's masterminding huge ones.
Granted, Buffett acknowledged that he wasn't "doing anything that he [Abel] doesn't approve of." Interestingly, though, he also said that Abel wasn't "doing anything I don't approve of." While Buffett quickly stated that Abel "is the decider," his comments underscore that Berkshire isn't in the "post-Buffett era" that some might have expected after he stepped down as CEO.
Today's Change
(
-0.40
%) $
-1.98
Current Price
$
489.27
Should you buy Alphabet stock, too? No one should buy shares of Alphabet solely because a famous investor did, even if that famous investor is the "Oracle of Omaha." It's also important to note that Buffett doesn't view Alphabet as his favorite stock. He told CNBC, "I would say that I don't like it as well as at least four or five other businesses that we own."
But Buffett also said in the CNBC interview last week that Alphabet is "more likely to be a winner" than 90% to 95% of the stocks that Wall Street favors. I suspect he's right (as he usually is).
In my view, Alphabet stands as one of the best-positioned companies to profit from nearly every aspect of the artificial intelligence (AI) revolution. Google Cloud is the fastest-growing of the top AI cloud service providers. Google Gemini consistently ranks among the most powerful AI models. Alphabet is integrating AI throughout its products, including Google Search. The company's Waymo unit is the leader in autonomous ride-hailing (robotaxis).
Buffett told CNBC's Quick, "It's not a question of whether it [Alphabet] was wonderful yesterday. It's the question, 'How long is it going to be wonderful?'" Berkshire has bet over $30 billion that the answer to that question is "probably a long time." I believe that's the correct answer.
Warren Buffett has never believed in owning a little bit of everything. Berkshire Hathaway's (BRKA 0.15%)(BRKB 0.40%) latest 13F filing shows just how far the famed investor leans the other way. Of a $263 billion U.S. stock portfolio, about 67% (more than two-thirds) sits in just five companies.
And that concentration isn't a quirk of one quarter. It's how the Oracle of Omaha has run Berkshire's money for decades, and he has been unusually direct about why. Here's a closer look at where the money sits, why Buffett runs the portfolio this way, and what everyday investors should (and shouldn't) take from it.
Image source: The Motley Fool
Five stocks, two-thirds of the portfolio Berkshire's 13F, which covers its U.S.-listed stock holdings as of the end of March, lists a portfolio of only about two dozen companies.
At the top is iPhone maker Apple, a position worth about $58 billion, or about 22% of the portfolio. Integrated payments company American Express is second at about $46 billion, or about 17%. Those two names alone account for nearly 40% of the entire book.
Rounding out the top five are Coca-Cola at about $30 billion (about 12% of the portfolio), Bank of America at about $25 billion (about 10%), and Chevron at about $17.5 billion (about 7%). Add it all up, and five companies carry about 67% of a $263 billion portfolio.
The next tier includes Occidental Petroleum and a newer position in Alphabet -- a stake first disclosed in the third quarter of 2025 that Berkshire has kept building since. But the filing doesn't capture everything Berkshire owns. The conglomerate's Japanese trading house stakes trade overseas, and its dozens of wholly owned businesses never show up in a 13F at all.
Worth noting, too: Berkshire was sitting on about $397 billion in cash and Treasury bills at the end of March. The cash pile is now bigger than the entire stock portfolio.
Why Buffett concentrates The concentration is deliberate, and Buffett spelled out his reasoning decades ago.
"We believe that a policy of portfolio concentration may well decrease risk if it raises, as it should, both the intensity with which an investor thinks about a business and the comfort-level he must feel with its economic characteristics before buying into it," he wrote in his 1993 letter to shareholders.
"Too much of a good thing can be wonderful," he added in the same letter, borrowing a line from Mae West.
In other words, Buffett would rather own a handful of businesses he understands deeply than a hundred he knows casually.
The top five fit that mold. These are companies he has owned and studied for years, in some cases decades, with durable brands and long records of paying dividends.
And the portfolio is still very much his. Buffett gave up the CEO title at the end of last year, but as Berkshire's chairman he told CNBC last week that it was he, not new CEO Greg Abel, who initiated the company's multibillion-dollar bet on Alphabet.
Today's Change
(
-0.40
%) $
-1.98
Current Price
$
489.27
What everyday investors should take from it The obvious lesson is conviction. Buffett doesn't spread money across his 20th-best ideas. When he finds a business he believes in at a valuation he can accept, he sizes the position so that being right matters.
Of course, before anyone mirrors those weights, it's worth looking at what surrounds them. Berkshire's five-stock core sits on top of dozens of wholly owned operating businesses, a sprawling insurance operation, and that $397 billion pile of cash and Treasury bills. Berkshire could watch its biggest holding get cut in half and keep compounding. An individual investor with two-thirds of their savings in five stocks has no such cushion.
To me, the deeper lesson is the homework. Buffett's concentration is earned by decades of studying these specific businesses, and he can hold through downturns because he knows exactly what he owns. Copying the weights without that understanding replicates his risk, not his edge.
So, study the five names. They say a lot about what one of history's great investors considers durable, and a watchlist built from them is a fine place to hunt for stocks to buy and hold. The discipline behind the portfolio is worth copying, too. But buying five stocks at Berkshire's weights is a different decision entirely, and for most investors, it's probably the wrong one.
At the end of last year, Warren Buffett retired as chairman and CEO of Berkshire Hathaway (BRKA 0.15%)(BRKB 0.40%) and passed the reins to Greg Abel. Although Buffett still has some influence on the company, it's clear that Abel and Berkshire Hathaway are embracing new strategies.
Since Abel took over, Berkshire Hathaway's stock portfolio has changed a bit, and one of the biggest shifts is that it has loaded up on Alphabet (GOOG 1.46%)(GOOGL 1.39%). Berkshire Hathaway purchased its first Alphabet shares in late 2025, but Abel has taken it up a notch. It's now Berkshire Hathaway's fifth-largest holding, accounting for 8.7% of its stock portfolio (across both share classes).
Image source: The Motley Fool.
Alphabet isn't the typical Berkshire Hathaway investment, but amid the evolving artificial intelligence (AI) landscape, it makes sense for the conglomerate to embrace an AI company that has its hands in many pots. Between its prior public stake and the company's announcement of a new $10 billion private placement purchase in June, Berkshire Hathaway now holds a nearly $31 billion stake.
Today's Change
(
-1.39
%) $
-4.88
Current Price
$
347.11
Alphabet is becoming a one-stop AI shop It's clear that AI is here to stay. The way people and businesses interact with it will inevitably evolve, but the technology itself isn't going anywhere. Alphabet is a smart investment for Berkshire Hathaway because it's a full-stack AI company that handles most of the pipeline in-house. It has operations in key parts of the AI ecosystem, including:
Research: Google DeepMind. Hardware: Custom AI chips. Infrastructure: Google Cloud and data centers. Applications: Gemini, productivity apps, and AI Overviews. Alphabet still relies on other companies for certain hardware -- such as Nvidia for chips or Taiwan Semiconductor Manufacturing Company for manufacturing -- but it's slowly but surely reducing its reliance on third parties and heading toward vertical integration.
When you're too reliant on other companies, you're at the mercy of their pricing and supply, so Alphabet is putting itself in a position to control more of its own destiny.
Google Cloud is becoming one of Alphabet's most impressive businesses If you're considering adding AI companies to your portfolio, it makes sense to include one of the leading builders of cloud computing infrastructure. Google Cloud lags behind Amazon Web Services (AWS) and Microsoft's Azure in market share, but it's by far the fastest-growing major cloud provider.
In the first quarter, Google Cloud revenue jumped 63% year over year to $20 billion. AWS and Azure grew their revenues by 28% and 40%, respectively, in their most recently reported quarters.
Don't expect Google Cloud to catch up to AWS or Azure in terms of size anytime soon, but its relatively small size leaves it plenty of room for growth as the cloud computing market as a whole grows. Alphabet stock is a perfect way to invest in AI without throwing money into more volatile and speculative businesses.
It has cash flow that only a handful of companies can match, a virtual monopoly in online search, and not much of the risk that comes with cyclical tech businesses or newer companies.
Stefon Walters has positions in Microsoft and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Warren Buffett spent decades preaching that a handful of great businesses beats a basket of mediocre ones, and his successor is running the same play. Under new CEO Greg Abel, Berkshire Hathaway has slimmed its stock portfolio down to fewer names, and roughly 68% of it now sits in just five companies.
Those five are Apple, American Express (AXP 1.72%), Coca-Cola, Bank of America, and Chevron. Each is a wonderful business, but one stands out to me above the rest.
Image source: Getty Images.
Concentration is the point, not a flaw Before getting to my pick, it is worth appreciating why Berkshire bets so big on so few stocks. Abel has trimmed the portfolio to under 30 holdings and spotlighted a short list of core positions, every one a company with a wide competitive moat and durable earnings. To a newer investor, putting most of your money in five stocks might look reckless.
To Buffett and Abel, spreading money thin across dozens of so-so businesses is the real risk. They would rather own a lot of a few things they understand deeply. That philosophy is exactly why the names at the top of this list are worth studying.
Today's Change
(
-0.45
%) $
-2.21
Current Price
$
490.91
My favorite of the bunch: American Express Apple is the biggest holding, but American Express is the one I would happily own. What makes it special is that it is not really a credit card company in the way most people think. It runs a closed-loop network, meaning it issues the cards, processes the payments, and serves the merchants all at once, so it earns a fee on nearly every dollar its customers spend. That fee-based, spend-centric model is far steadier than a typical lender that lives or dies on interest and loan losses.
Even better is who is doing the spending. American Express caters to affluent, loyal customers, and it has been aggressively courting the next generation of them. Its recent Platinum card overhaul -- the largest in its history -- has been a hit, and the company added millions of new cards, with the vast majority signing up for fee-charging products.
Most striking to me, millennials and Gen Z now make up around 65% of its new consumer accounts globally and account for a rising share of total spending. The strategy is patient and smart: Win young, high-earning customers early with perks that speak to them, like dining reservations through Resy and Tock and a quarterly credit at Lululemon Athletica, then grow alongside them as their incomes and needs expand over decades.
Today's Change
(
-1.72
%) $
-6.22
Current Price
$
355.35
Why the moat is so hard to attack The beauty of this setup is how it compounds. Premium customers spend more, making Amex's network more valuable to merchants, which in turn funds richer rewards, which attract more premium customers. Because those cardholders pay annual fees and tend to spend rather than carry risky balances, Amex generates reliable, high-quality revenue while taking on less credit danger than many banks. That is the kind of self-reinforcing advantage Buffett prized, and it is why American Express has been a Berkshire holding for more than three decades. It is a business built to keep raising prices while keeping customers happy, a rare combination.
No stock is bulletproof. American Express is tied to consumer spending, so a sharp recession would slow its growth and could lift loan losses, even among wealthier customers. It faces constant competition from other card networks and fintech upstarts chasing the same young spenders. And after a strong run, the stock is no longer the bargain it once was, so patient investors may want to buy gradually rather than all at once.
Greg Abel's concentrated Berkshire portfolio is a master class in owning quality over quantity, and American Express embodies what makes these businesses special: a wide moat, pricing power, and a loyal customer base that is getting younger, not older. Of the five stocks that make up most of Berkshire's holdings, it is my favorite.
Famed investor Warren Buffett is usually not one to seek out recognition, but in a recent interview, the Oracle of Omaha took credit for Berkshire Hathaway (BRKA 0.34%) (BRKB 0.42%) taking a large stake in Alphabet (GOOGL 2.05%) (GOOG 2.06%). Buffett has never been known as a tech investor, so when this value-oriented guru takes a big stake in a leading tech company, the stock should probably be on your list of stocks to strongly consider.
Berkshire first took a position in Alphabet in the third quarter of last year, right before Buffett was set to retire at the end of 2025. It added to that position earlier this year when it invested $10 billion in a private placement to help Alphabet raise money to build out its AI infrastructure.
In the interview, Buffett said the key to investing was finding businesses that can earn a high return on capital for a long period of time. He and current Berkshire CEO Greg Abel appear to believe that Alphabet can do this with its AI infrastructure investments, and there is good reason to believe this will be the case.
Image source: The Motley Fool.
A long runway of growth As with the other big three cloud computing giants, Alphabet benefits from being able to split its computing power between its own internal needs and third-party demand. This gives it flexibility to help it generate the best return on its investments. What really separates the company from the pack, though, is its Tensor Processing Units (TPUs). It developed these chips more than a decade ago and has been improving upon them with new iterations ever since. It has also optimized its entire software and hardware stack around them.
Today's Change
(
-2.05
%) $
-7.26
Current Price
$
347.20
This gives the company a big cost advantage versus both AI model competitors and those in the cloud computing space that tend to rely mostly on Nvidia's much more expensive graphics processing units (GPUs). Alphabet's TPUs allow it to train its Gemini frontier models at a much lower cost than competitors like OpenAI. They also help the company save on inference expenses, giving it a structural cost advantage. This, combined with its distribution and ad-network edges, is why it can run a strong and profitable consumer AI business.
Alphabet's custom chips also give the company a cost edge in its fast-growing cloud computing business. It's seeing rapid cloud revenue growth, including 63% last quarter, but its cloud profits are climbing even faster, with cloud operating income tripling. Meanwhile, Alphabet's TPUs are so well regarded that Anthropic has started placing big TPU orders through its partner Broadcom, opening up another potential high-margin revenue stream.
Backed by Buffett's approval, Alphabet is a top AI stock to buy right now, with a long runway of growth ahead.
Geoffrey Seiler has positions in Alphabet and Broadcom. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, and Broadcom. The Motley Fool has a disclosure policy.
Twenty years ago, Warren Buffett pledged to donate all of his vast wealth to charities.
"My pledge: More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day," Buffett wrote back in 2010.
This week, Buffett, now the retired former CEO of Berkshire Hathaway (BRKA 0.34%) (BRKB 0.42%) put that pledge into action. On July 14, Buffett announced that he will convert 8,000 Berkshire Hathaway Class A shares into 12 million Berkshire Hathaway Class B shares to donate the 12 million B shares to four foundations.
Valued at around $490 per Class B share, that would amount to about $5.9 billion.
Image source: The Motley Fool.
Buffett will donate 9 million shares to the Susan Thompson Buffett Foundation and 1 million shares each to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. All four foundations have direct ties to Buffett family members. Notably absent from the donation list is the Bill Gates Foundation, which Buffett had donated to for years.
$140 billion in eight years This marks an acceleration of donations, as Buffett has set a goal to give away all of his $140 billion in wealth to charities by Dec. 31, 2034.
It will be given away over the next eight years, in pieces, to avoid rattling the Berkshire Hathaway stock price too much. Berkshire B shares are down about 1% since the announcement, so it had minimal impact.
Today's Change
(
-0.42
%) $
-2.08
Current Price
$
491.04
Buffett now owns 188,290 class A shares, which trade at around $733,000 each, and 1,162 class B shares, which trade at around $490 each.
"My goal is to dispose of all of my Berkshire shares within about eight years. As I explained last year, my children are unfortunately growing older. I have every hope that the three of them are able to carry out the disposal of my shares by Dec. 31, 2034," Buffett said in a July 14 release. "Of course, mortality is unpredictable, but my remaining shares will be donated to the four foundations one way or the other by Dec. 31, 2034."
Buffett said the goal is to have the donations grow annually to the three foundations that are managed by his three children -- that is, the Sherwood Foundation (chaired by daughter Susan A. Buffett), Howard G. Buffett Foundation (chaired by son Howard Buffett), and NoVo Foundation (chaired by son Peter Buffett and Peter's wife, Jennifer). He noted that the annual grant to the Susan Thompson Buffett Foundation will grow at a "somewhat greater rate." Susan Thompson Buffett was Buffett's first wife. She died in 2004.
Giving away the $140 billion in the next eight years would require distributing roughly $17 billion per year in grants.
Although the company holds a sizable stake in Alphabet, much like his predecessor, Warren Buffett, current Berkshire Hathaway (BRKA +0.73%) (BRKB +1.71%) CEO Greg Abel isn't making any major, hyperaggressive bets on artificial intelligence (AI) technology.
He's certainly not unaware of the industry's rapid growth, though, and is making a point of preparing one of Berkshire's subsidiaries for what seems inevitable. That's soaring demand for the electricity that powers AI data centers.
The question is, will this meaningfully move the needle for Berkshire Hathaway and its shareholders?
Image source: Getty Images.
AI and energy is definitely on Abel's radar Given everything else happening that busy day, it would have been easy to miss. Nevertheless, as Abel commented during Berkshire's annual shareholder meeting in early May, "One of the core inputs to all those data centers -- hyperscalers -- associated with artificial intelligence is energy. Our businesses have that opportunity in front of them at Berkshire Hathaway Energy." He then added, "And yes, we're pursuing them."
Abel went on to point out that, unlike so many other players in the utility business, Berkshire Hathaway Energy is already sending 8% of its potential electricity production in Iowa, for instance, to the AI data center industry that's set up shop there. He goes on to suggest that this figure could grow by 50% (or more) over the next five years.
In other words, Berkshire's energy arm is already ready for what awaits.
But what does this opportunity practically mean for Berkshire Hathaway shareholders?
It takes some digging, but it's not a secret -- Berkshire's energy business added nearly $4 billion worth of earnings to the conglomerate's bottom line last year. That's roughly 10% of its total profits, excluding the ever-changing gains from its stock portfolio. That's not huge, but it's not insignificant either.
Data source: Berkshire Hathaway 2025 investor report.
For all the opportunity Abel says he sees on this front, however, it's not exactly a game changer.
AI takes a relatively small part of overall energy production There's no denying the utility industry as a whole wasn't -- and still isn't -- ready for the rapid growth in electricity demand driven by the proliferation of AI data centers.
In the grand scheme of things, though, it's not as if artificial intelligence is consuming the vast majority of the nation's produced power. Recent number crunching by Pew Research indicates that data centers accounted for only about 4% of the United States' total electricity generation in 2025. The rest is still being used by everything else and everyone else. Even Pew's forecast for a doubling of this consumption by 2030 would put the AI industry's portion of power consumption in the ballpark of 8%, which is still a small minority.
Today's Change
(
1.71
%) $
8.42
Current Price
$
501.54
So why all the angst? The capital-intensive utility business wasn't ready for any major surge in demand, having managed paper-thin differences between supply and consumption for decades.
More to the point for interested investors, while AI-driven energy demand is undeniably growing rapidly, it's growing from a small baseline. There's not enough whole-dollar opportunity here to consider it a core part of any bullish thesis for Berkshire Hathaway... at least not yet.
That doesn't mean Berkshire isn't a buy, though. If nothing else, the conglomerate remains an incredible cash cow, with a portfolio of great stocks.
Warren Buffett went on CNBC this morning and took personal credit for one of the more surprising moves in Berkshire Hathaway‘s (NYSE:BRK-B | BRK-B Price Prediction) recent history. Speaking with Becky Quick, the 95-year-old chairman said, “I initiated it” when asked about the conglomerate’s expanding stake in Alphabet (NASDAQ:GOOGL), offering his first public explanation of how Google’s parent became one of Berkshire’s largest technology holdings.
The remark resolves the question of whether new CEO Greg Abel or Buffett drove the pivot toward Big Tech, and it comes as Alphabet uses fresh capital, including a roughly $10 billion private placement from Berkshire earlier this year, to fund an AI infrastructure buildout that is straining even the largest hyperscalers’ cash flows.
The “Decider” Dynamic With Greg Abel Buffett announced he would step down in May of last year and formally handed the reins to Abel at the start of this year. That timing had led many to assume Abel authored the Alphabet position, which Berkshire first disclosed in Q3 2025 and has since expanded.
Buffett described the working arrangement plainly: “I am not doing anything that he doesn’t approve of. He’s not doing anything I don’t approve of. We talk all the time, but he is the decider,” referring to Abel. He also expressed regret over the delay, saying he “made a mistake” by not investing in Alphabet sooner, echoing his long-standing frustration at missing Google’s early rise despite seeing its advertising strength through Geico.
Even so, Buffett kept his enthusiasm measured. On Alphabet’s place in the portfolio, he said: “I would say that I don’t like it as well as at least four or five other businesses that we own.”
Berkshire’s Q1 2026 8-K, filed with the SEC on May 7, 2026, reported operating earnings of $11.35B and indicated that the company remained a net seller of equities. Berkshire shares trade around $500, up just under 1% year to date.
Why the $10 Billion Alphabet Placement Matters Alphabet is spending at a pace that reframes the tech capex conversation. Management guided to $175 billion to $185 billion in 2026 capital expenditures, and Q1 2026 capex more than doubled year over year to $35.67 billion. Google Cloud Q1 revenue reached $20.03 billion, up 63% year over year, with backlog nearly doubling quarter over quarter to more than $460 billion.
That backlog is the demand signal Buffett appears to be underwriting. He framed the competitive stakes directly: “The real question with Google and all of its competitors now, because they’re all laying out hundreds of billions, and that’s real money. That’s the game they’re playing now. They weren’t playing that game with computer software.”
Alphabet’s stock has responded to the disclosure and capex trajectory. Shares trade near $342.78, up 8% year-to-date and roughly 86% over the past year. The forward P/E sits around 25.
Berkshire as a Recurring Capital Partner? The forward question is whether the Alphabet placement is a one-off or a template. Berkshire ended Q1 2026 with a record $380 billion in cash. Hyperscalers are entering a phase in which AI-related capex is outpacing operating cash flow, creating an opportunity for large, patient private capital providers. Buffett’s other Big Tech position, Apple (NASDAQ:AAPL), was built entirely in the public market. The Alphabet deal is structured differently, and the “I initiated it” comment suggests Buffett himself sees value in being a preferred financing partner rather than just a market buyer.
For readers assembling a longer view of the portfolio’s next chapter, our 7 Warren Buffett Stocks to Buy Now briefing walks through which existing Berkshire holdings look most durable alongside the new tech tilt.
What to watch next: whether Berkshire’s next 13F expands the Alphabet position further, whether Abel signals appetite for similar structured deals with other hyperscalers, and how Alphabet’s AI monetization keeps pace with the capex line.
Warren Buffett said that it didn't come as a surprise when he told Bill Gates about his decision to stop donating to the Gates Foundation after partnering on the group's philanthropic initiatives for two decades.
Buffett, 95, didn't include the Gates Foundation when he announced the donation of almost $6 billion of Berkshire Hathaway stock on Tuesday, a move which follows revelations about interactions between Gates, the co-founder of Microsoft, and late sex offender Jeffrey Epstein.
The billionaire told CNBC he "had read what Congress came up with. I'd read everything," after Gates recently met with Congress amid lawmakers' investigations into Epstein. Gates hasn't been accused of crimes and has repeatedly expressed regret for associating with Epstein.
"While it's distasteful, while he made mistakes, I made mistakes, hiring all kinds of people, or choosing friends, and then finding out later that, one way or other, they weren't what I thought they were," Buffett said. "I found nothing in there that was beyond what I could picture myself doing."
WARREN BUFFETT PENS LAST LETTER AS ABEL PREPARES TO TAKE OVER
Warren Buffett opted to make his annual donations to four family foundations rather than the Gates Foundation. (Christopher Goodney/Bloomberg via Getty Images)
Buffett has donated over $47 billion in Berkshire stock to the philanthropic organization founded by Gates since 2006.
This year, the legendary investor instead focused his donations on four family foundations that are run by his children, Susie, Howard and Peter.
Buffett explained that his children are getting older and are ready to distribute his wealth, saying he has told the "three children that it is theirs, and it's their responsibility to get it done well."
ARE YOU A NEW STOCK MARKET INVESTOR IN JUNE 2026? HERE'S WARREN BUFFETT'S ADVICE
Ticker Security Last Change Change % BRK.A BERKSHIRE HATHAWAY INC. 733,180.00 -3,820.00 -0.52% He also accelerated the timeline to distribute his remaining Berkshire shares, which represent a roughly 13% stake in the conglomerate valued at more than $1 trillion.
He now wants the shares distributed by the end of 2034, rather than 10 years after his death, due to his children's advanced ages – noting that his oldest child, Susie Buffett, will be 81 by the end of 2034.
WARREN BUFFETT'S FINAL LETTER TO SHAREHOLDERS: READ IN FULL HERE
"I reevaluated my whole situation," Buffett told CNBC. "It's not just a question of mortality. It's a question of keeping your marbles."
Buffett said his children are older and are prepared to take on the task of distributing his wealth to worthy causes. (Photo by Kevin Dietsch/Getty Images)
After Buffett's latest donations to the four foundations, he will have given more than $23 billion in Berkshire stock to the Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation.
Warren Buffett said Wednesday he — not Berkshire Hathaway's new CEO Greg Abel — was the driving force behind the recent big investment in Alphabet.
"I initiated it," Buffett said in an interview with CNBC's Becky Quick. "I am not doing anything that he doesn't approve of. He's not doing anything I don't approve of. We talk all the time, but he is the decider."
Berkshire first disclosed a stake in Alphabet during the third quarter of 2025 and has dramatically increased its investment since. Last month, the conglomerate invested an additional $10 billion through a private stock purchase.
"The trick in life is to find — I mean investing — is to find businesses that are going to earn high returns on capital for an extended period of time," Buffett said.
Buffett, who stepped down as Berkshire's chief executive earlier this year but remains chairman, said he and CEO Greg Abel continue to work closely together on investment decisions.
This is breaking news. Please refresh for updates.
Greg Abel, Warren Buffett's successor as CEO of Berkshire Hathaway (BRKA 0.13%) (BRKB 0.51%), made few changes to Berkshire's portfolio when he first took the role in January, but over the past month, he has made some major moves.
As you may recall, last month, Berkshire announced plans to acquire homebuilder Taylor Morrison for $8.5 billion. However, while this represents the first major acquisition of the Abel era, last month, Berkshire committed to an even larger capital investment, agreeing to purchase $10 billion in newly issued Alphabet (GOOG 0.25%) (GOOGL +0.25%) shares in a private placement.
Berkshire is no stranger to such private deals. Buffett executed plenty of them during his 60-year tenure. However, while Buffett's private deals typically involved financially distressed, "old economy" companies, Abel is making a different type of wager. That is, he's upping Berkshire's bet on a "Magnificent Seven" stock, perhaps as a means to increase the conglomerate's exposure to the artificial intelligence (AI) megatrend. And this deal could affect investors' perception of Berkshire Hathaway stock moving forward.
Image source: The Motley Fool.
Abel, Berkshire, and its increased bet on Alphabet Over the past year, Berkshire Hathaway has gradually made Alphabet, the parent company of Google and YouTube, a key position in its equity portfolio. Late last year, Berkshire first disclosed ownership of around 17.9 million shares, worth $4.3 billion at the time, in its third-quarter 2025 13-F filing with the Securities and Exchange Commission.
Today's Change
(
-0.51
%) $
-2.58
Current Price
$
504.00
In subsequent quarters, Berkshire continued to acquire Alphabet shares, with its position growing to around 57.8 million shares as of March 31, 2026. That stake was worth around $22.7 billion when Berkshire's most recent 13-F hit the street on May 15. But now, following the private placement deal, published reports estimate Berkshire now owns around 86.4 million shares of Alphabet, or a 9.2% stake worth approximately $31.6 billion.
The holding company's equity positions in Coca-Cola, American Express, and Apple remain larger, but the increased long-term wager on Alphabet, presumably based largely on the company's AI growth, still suggests a slight shift in Berkshire Hathaway's investing style under Abel's leadership.
What this means for shares moving forward Make no mistake. Berkshire Hathaway's overall asset allocation among its stock positions and subsidiaries has remained largely unchanged since Buffett's retirement. However, this latest move could mark the start of a shift toward a higher allocation to technology stocks. If the AI growth trend continues, that strategic adjustment could prove wise in hindsight.
However, if Abel increases Berkshire's tech exposure just before an "AI bubble" pops, that could bode badly for the conglomerate, both in terms of its stock price and its reputation as a long-term "stock for all seasons." If Abel's big bet backfires, investors could view his latest move as poorly timed chasing of short-term trends.
Still, if you hold Berkshire shares, that doesn't mean you should start eyeing the sell button just yet. Though the stock is trading near its all-time high, Berkshire's nearly $400 billion cash position, representing around 36% of the company's market cap, leaves it well positioned to weather a downturn. I would grow more cautious, though, if Abel decides to further increase Berkshire's exposure to tech, and particularly its exposure to pure-play AI stocks.
Berkshire Hathaway B (BRK.B - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned +4%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Insurance - Property and Casualty industry, which Berkshire Hathaway B falls in, has gained 5.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Berkshire Hathaway B is expected to post earnings of $5.53 per share for the current quarter, representing a year-over-year change of +7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $20.82 points to a change of +1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $21.59 indicates a change of +3.7% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Berkshire Hathaway B is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Berkshire Hathaway B, the consensus sales estimate of $95.3 billion for the current quarter points to a year-over-year change of +3%. The $385.6 billion and $404.9 billion estimates for the current and next fiscal years indicate changes of +3.8% and +5%, respectively.
Last Reported Results and Surprise HistoryBerkshire Hathaway B reported revenues of $93.68 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $5.25 for the same period compares with $4.47 a year ago.
Compared to the Zacks Consensus Estimate of $95.1 billion, the reported revenues represent a surprise of -1.5%. The EPS surprise was +8.92%.
Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Warren Buffett once joked that departing Apple (AAPL +4.88%) Chief Executive Officer Tim Cook made more money for Berkshire Hathaway (BRKA +1.41%) (BRKB +1.61%) shareholders than he ever did as CEO. Indeed, Buffett's decision to buy Apple, and a lot of it, turned out to be one of his most lucrative investments of all time. And while Buffett sold a huge chunk of the investment before stepping down as CEO, Apple remains Berkshire Hathaway's largest holding.
Greg Abel took over for Buffett at Berkshire at the start of the year, and he's started to exert his own influence on the company's enormous equity portfolio. Buffett left him with roughly $369 billion in cash and equivalents to deploy, as well as several dozen companies generating substantial free cash flow each quarter. After deploying an estimated $23 billion into a single stock, however, Abel may have already found Berkshire's next Apple.
Image source: Getty Images.
How Buffett and Munger started buying Apple At the 2012 Berkshire Hathaway annual meeting, Buffett and the late Vice Chairman Charlie Munger were asked whether they would consider buying companies like Apple and Google, now Alphabet (GOOG 0.37%) (GOOGL 0.23%). Buffett praised both companies and said, "I would not be at all surprised to see them be worth a lot more money 10 years from now, but I wouldn't want to buy either one of them."
It all came down to their circle of competence. "I think we can fairly say that other people will always understand those two companies better than we do," Munger added. "We have the reverse of an edge."
Four years later, Berkshire started buying Apple stock.
Today's Change
(
4.88
%) $
14.36
Current Price
$
308.74
The about-face stems from a complete reconsideration of Apple, especially as the stock price fell toward an incredibly cheap valuation. Buffett began to view Apple as a consumer-goods company with tremendous pricing power instead of a tech company reliant on innovation. And after Buffett lieutenants Ted Weschler and Todd Combs presented it as a good investment opportunity, he began buying it in large quantities. Ultimately, Buffett sunk $36 billion of Berkshire's cash into the stock from 2016 through 2018.
The willingness to continue examining every opportunity in the market ensured Buffett and Munger didn't miss out on the biggest investment of their lifetimes. Berkshire's Apple position grew to $177 billion in 2023 before Buffett started trimming the stock from the portfolio. After selling 75% of Berkshire's stake, the remaining shares are still worth more than $70 billion.
Greg Abel is taking a similar approach, examining every opportunity without abandoning the core investment philosophy behind Berkshire's portfolio. And that may have led to Berkshire Hathaway's next Apple: an opportunity to deploy a huge amount of capital with strong return potential.
Abel has made several big investments in his short tenure as CEO, but his biggest so far is the position in Alphabet. Berkshire initially took a small stake in Alphabet in the third quarter of last year while Buffett was still CEO. It's unclear whether Buffett, Weschler, or Combs pushed for that initial position. However, Abel appears to be behind the recent purchases, given their size.
Berkshire added nearly 40 million shares of Alphabet stock in the first quarter for an estimated cost of about $13 billion. At the start of June, Abel negotiated a $10 billion private placement for an additional 28.6 million shares. While Berkshire received a discount from the prevailing share price at the time of the deal, the stock subsequently sank below that level, allowing Abel to buy even more at the same price. It wouldn't be a surprise if he had.
Abel's decision to load up on Alphabet may seem like a big shift away from the core investment philosophy that got Berkshire to this place. But at its core, Alphabet may be simpler than it sounds. There are two key businesses within Alphabet: advertising and cloud computing.
Today's Change
(
-0.37
%) $
-1.33
Current Price
$
356.56
The advertising business is anchored by Search and YouTube, both of which have established durable competitive advantages. Many expected AI chatbots to disrupt Google's search dominance. Instead, it has reinforced Google as the first stop for most internet searches.
In fact, the company has leveraged AI to expand the types of searches users perform on its service. As a result, Alphabet has seen accelerating search ad revenue during the past four quarters. YouTube, likewise, has established itself as the top source for ad-supported video, winning over amateur and professional video producers alike with its monetization capabilities.
In cloud computing, the business is relatively straightforward. Alphabet builds capacity and rents it to customers. It has a few other capabilities to build out a fully fledged platform instead of merely renting infrastructure, but at its core, it's similar to a real estate business.
Alphabet has seen tremendous demand for its cloud service, as reflected in its remaining performance obligations. As of the end of the first quarter, the company had $460 billion in contracted backlog, up from $230 billion the previous quarter.
There's a long runway for growth at Alphabet across its business segments, especially with free cash flow from advertising funding accelerated growth in the cloud business. With the stock trading at less than 26 times forward earnings, it still looks like a good value relative to its growth outlook. And with a market cap of more than $4 trillion, Abel can deploy a huge chunk of Berkshire's cash in the business without disrupting the market. He could make it Berkshire's largest investment ever over the next few quarters.
When you step back and look at the big picture, Berkshire Hathaway (BRKA +1.41%)(BRKB +1.61%) is an industrial conglomerate. It has investments in hundreds of companies, including those it owns outright and public companies in which it holds stock, like Coca-Cola (KO +3.51%) and American Express (AXP +1.32%). In fact, many on Wall Street watch the company's investment decisions to glean ideas.
But when you dig into Berkshire Hathaway's story, you'll find that it is a financial stock. And that's because the company is built on top of its insurance operations. Here's why that's so important.
Image source: The Motley Fool.
Berkshire Hathaway loves the float Berkshire Hathaway exists in its current form because of Warren Buffett. The now-retired former CEO's investment skills were so impressive that he earned the nickname the Oracle of Omaha. While he was definitely a great investor, his most impressive realization was probably that he could invest the float from insurance companies. The float arises because insurance companies collect premiums up front and pay out on claims in the future. In between, insurance companies can invest that cash. Most insurance companies focus on bonds, but Buffett chose to be more aggressive.
Other companies have recognized the strength of this model, including Markel (MKL +3.29%) and Brookfield Corporation (BN +1.54%). Each is attempting to mimic the success of Buffett and Berkshire Hathaway. That said, there's more to Berkshire Hathaway's magic than just being an investment-led insurance business.
Berkshire Hathaway is focused on making the right investment decisions Having a leading insurance operation, including industry giants like GEICO and General Re, is the foundational story. This is why the company is classified as a financial stock, even though it owns a widely diversified portfolio of businesses. However, Buffett's investment approach was still a pivotal factor in the company's success. As noted, Buffett is now retired, handing off the CEO title to Greg Abel at the start of 2026.
Today's Change
(
1.61
%) $
8.04
Current Price
$
507.78
Abel worked with Buffett for decades and was his hand-picked successor. It is unlikely that Berkshire Hathaway's investment approach will dramatically change. And the company enters 2026 with nearly $400 billion in dry powder (cash) on its balance sheet. There are two reasons to like the company's financial situation.
First, the cash will provide a cushion if there's a recession and/or bear market. Second, it gives Abel the wherewithal to buy stocks while other investors are selling. Being a contrarian and investing during downturns was one of Buffett's biggest strengths. That said, the insurance business will continue to generate float for the foreseeable future. So, not only is Berkshire Hathaway prepared for near-term market uncertainty, but it also has the financial foundation to continue executing the successful business plan Buffett has created for decades to come.
American Express is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Brookfield Corporation, and Markel Group. The Motley Fool has a disclosure policy.
It's official. Technology giant Alphabet (GOOG +0.37%) (GOOGL +0.25%) is now one of the 30 stocks that make up the Dow Jones Industrial Average, replacing Verizon Communications.
In and of itself, it isn't that big of a deal. Standard & Poor's (which manages the Dow) regularly swaps out the index's constituents to ensure this collection of blue chip stocks is a quality cross-section of the United States' economy.
This most recent switch is a big deal, however, for another reason. That's the fact that it validates Berkshire Hathaway's (BRKA +0.82%)(BRKB +0.63%) recent investment in the very same stock, and points to its likely future.
Image source: Getty Images.
No denying its important place now Berkshire's position in Alphabet wasn't initially established while current CEO Greg Abel was in charge, for the record. It was Warren Buffett who ran Berkshire when the unlikely small purchase was made in the third quarter of last year (Buffett stepped down as chief executive at the end of 2025). Buying into the conglomerate was considered unlikely because Alphabet is the sort of technology holding Buffett typically tried to avoid.
Abel essentially tripled Buffett's modest bet, though, making the nearly $30 billion worth of Class A and C shares of Google's parent that Berkshire Hathaway now owns the conglomerate's fifth-biggest holding, something Buffett likely would never have allowed to happen under his watch.
Today's Change
(
0.63
%) $
3.14
Current Price
$
503.53
Moreover, the fact that Standard & Poor's just added this name to the Dow not only underscores that Abel is right about Alphabet's prospects, but suggests he's willing to make bigger and bolder bets than Buffett was.
Alphabet isn't on shaky ground or at risk of imploding. But let's face it: It's not the sort of name that led Berkshire to the market-beating gains it's produced since Buffett took the helm back in 1965. It's also not the sort of American industrial name that Charles Dow and Edward Jones had in mind when the pair invented the index back in 1896.
What constitutes an "industrial" stock in the sense that it's an important market barometer, however, has evolved over time. The technology sector now accounts for almost 20% of U.S. jobs (according to the Information Technology and Innovation Foundation), and roughly 10% of domestic GDP (according to the National Science Board), despite the country's economy still being mostly service-oriented. As the nation's top gateway to the World Wide Web, plus a major provider of ancillary business and entertainment services, Alphabet facilitates a great deal of this activity one way or another.
Now Standard & Poor's recognizes the important role the company plays on this front, as Abel did just a few weeks earlier.
Today's Change
(
0.25
%) $
0.89
Current Price
$
358.26
Connect the dots Not all worthy blue chip names are in the Dow, just as not all those selected for inclusion remain in it indefinitely. As was noted, Verizon was removed to make room for Alphabet.
Becoming part of this iconic index is an amazing accolade, nonetheless, in that it unofficially confirms a stock's status as a quality blue chip; something that Buffett would be far less likely to assert based on his past statements. Abel apparently sees it differently. Standard & Poor's agrees with Abel.
Perhaps more important to interested investors, this shift is likely just a glimpse of what to expect from Berkshire Hathaway going forward. Abel doesn't seem nearly as hesitant as Buffett was to own "new economy" stocks.
For the first time in more than half a century, the trillion-dollar company that Warren Buffett helped build is in uncharted territory. Following the Oracle of Omaha's retirement as Berkshire Hathaway's (BRKA +0.72%)(BRKB +0.73%) CEO on Dec. 31, it's his longtime understudy, Greg Abel, who's now calling the shots.
Abel wasted little time reshaping Berkshire's $332 billion investment portfolio. Since taking over as CEO, he's dumped 16 positions, including the renowned pizza chain, Domino's Pizza (DPZ +0.68%). At the other end of the spectrum, he's built up a mammoth stake in Google parent Alphabet (GOOGL +1.09%)(GOOG +0.67%), which is now a top-five holding.
Warren Buffett retired as Berkshire Hathaway's CEO on Dec. 31, 2025. Image source: The Motley Fool.
Abel places a to-go order for Domino's While an argument can be made that selling out of Amazon was the biggest eyebrow-raiser of Abel's first quarter as Berkshire's CEO, his exit from Domino's Pizza is even more surprising.
Before Buffett's retirement, he acquired shares of Domino's for six consecutive quarters, building up a 3.35-million-share position. Whereas Berkshire's Amazon stake was substantially reduced in the fourth quarter, signaling its upcoming exit, there was no indication that Domino's would be given the heave-ho.
Although Domino's Pizza still possesses several traits that Buffett and Abel appreciate, such as earning the trust of its consumers and providing a hearty capital-return program for shareholders, there were shortcomings that may explain this exit.
Today's Change
(
0.68
%) $
1.99
Current Price
$
296.04
For instance, same-store sales growth has been historically subpar recently. During the first quarter, Domino's delivered an international same-store sales decline of 0.4%. While this might not sound like much, Domino's has increased its international same-store sales for 32 consecutive years.
Additionally, the value-focused Abel may have struggled to justify Domino's valuation. While its current forward price-to-earnings ratio of 14 is historically attractive, Domino's was valued at closer to 25 times forward-year earnings throughout most of 2025.
Image source: Getty Images.
Berkshire's new boss is piling into Alphabet However, there's one stock -- up more than 13,300% since its initial public offering -- that Warren Buffett's protégé can't stop buying.
During the first quarter, Abel more than tripled Berkshire's stake in Alphabet's Class A shares (GOOGL) and opened a new position in its Class C shares (GOOG). On June 1, Alphabet announced an $80 billion equity offering to fund its artificial intelligence (AI) ambitions, with $10 billion to be purchased at a modestly reduced price by Berkshire Hathaway ($5 billion of each share class).
Although Berkshire hasn't formally announced the closure of this private placement, as of this writing on June 26, this buy increases Berkshire's stake in Alphabet to well over $29 billion, making it a top-five holding.
JUST IN: Berkshire Hathaway increases its stake in Google by 200%
-- Kalshi (@Kalshi) May 18, 2026 Buffett and Abel both love investing in businesses with sustainable moats -- and Alphabet delivers on this front. Internet search engine Google is a virtual monopoly, accounting for approximately 90% of worldwide internet search traffic, per GlobalStats. When coupled with streaming platform YouTube, the second-most-visited website on the planet behind Google, it's easy to see how Alphabet commands such phenomenal ad pricing power.
But Alphabet is also a pioneer in AI applications. Its integration of generative AI and large language model solutions into Google Cloud has reaccelerated sales growth in this high-margin operating segment.
Key Takeaways Berkshire Hathaway shares fell 2.7% in six months, lagging the industry, sector and the S&P 500.BRK.B trades above its industry price-to-book average but below its five-year median.Cash and Treasuries topped $370B, while BRK.B's insurance float reached $176.9B. Shares of Berkshire Hathaway Inc. (BRK.B - Free Report) have lost 2.6% in the past six months compared with the industry’s 1.3% decline. In contrast, the Finance sector and the Zacks S&P 500 composite have risen 2.3% and 6.7%, respectively, in the same time frame.
Berkshire Hathaway is a conglomerate with more than 90 subsidiaries engaged in diverse business activities. This provides it stability in various economic cycles.
BRK.B vs Industry, Sector, S&P 500 in 6 MonthsImage Source: Zacks Investment Research
BRK.B’s peer, Chubb Limited (CB - Free Report) , has gained 5.2% in the past six months, while another peer, The Progressive Corporation (PGR - Free Report) , has lost 5.7% in the same time frame.
BRK.B is ExpensiveShares of Berkshire Hathaway are overvalued compared with its industry. The stock is currently trading at a price-to-book multiple of 1.44, higher than the industry average of 1.42 but below the five-year median of 1.45. It has a Value Score of C.
Image Source: Zacks Investment Research
Berkshire Hathaway is relatively cheap compared with PGR and CB.
The Case for BRK.B StockBerkshire Hathaway’s insurance operations remain the cornerstone of its business, contributing nearly a quarter of total revenues while serving as a key driver of long-term value creation. The segment benefits from disciplined underwriting, broad market reach and a consistent record of profitability across economic cycles. Its most significant advantage is the sizable insurance float, which Warren Buffett has long deployed as a low-cost source of capital to fund investments across Berkshire’s diversified portfolio.
Beyond insurance, Berkshire continues to refine its investment portfolio to improve income stability and geographic diversification. The company has increased investments in Japanese trading houses, expanded housing-related holdings and strengthened its airline exposure while trimming positions in payment companies.
The company’s diversified operating businesses further reinforce earnings stability. Berkshire Hathaway Energy (BHE), its regulated utility subsidiary, generates predictable cash flows while expanding its renewable energy portfolio, positioning it to benefit from long-term trends such as electrification, decarbonization and the transition toward cleaner energy.
BNSF Railway remains another valuable asset. As one of the largest freight rail operators in the United States, it provides a durable competitive advantage supported by essential transportation demand, despite near-term headwinds from softer freight volumes and lower fuel surcharge revenues.
Berkshire’s Manufacturing, Service and Retail businesses add another layer of diversification. While more economically sensitive, these operations provide meaningful upside during periods of stronger economic growth through higher sales volumes and improved margins.
Financial strength remains a defining characteristic. Cash and U.S. Treasury holdings exceeded $370 billion at the end of 2025, providing ample liquidity for acquisitions while generating steady investment income. Meanwhile, Berkshire’s insurance float reached $176.9 billion as of March 31, 2026, continuing to serve as a powerful source of low-cost capital that supports long-term shareholder value creation.
Berkshire Hathaway’s Return on CapitalReturn on equity (ROE) in the trailing 12 months was 6.6%, underperforming the industry average of 7.4%. Return on equity, a key profitability measure, reflects how effectively a company utilizes its shareholders’ funds. It is noteworthy that though BRK.B’s ROE lags the industry average, the metric has been improving consistently.
The same holds true for return on invested capital (ROIC), which has increased every year since 2020. This reflects BRK.B’s efficiency in utilizing funds to generate income. However, ROIC in the trailing 12 months was 5.4%, lower than the industry average of 5.7%.
Optimistic Analyst Sentiment on BRK.BThe Zacks Consensus Estimate for 2026 revenues indicates a 3.7% year-over-year increase, while the same for earnings implies a 1% year-over-year increase. The consensus estimate for 2027 revenues and EPS indicates a year-over-year increase.
The consensus estimate for 2026 and 2027 earnings has moved 0.8% north each, respectively, in the last 30 days.
Image Source: Zacks Investment Research
The consensus estimate for CB’s 2026 and 2027 earnings has moved north in the last 30 days.
Estimates for PGR’s 2026 and 2027 earnings have also moved north in the same time frame.
Parting Thoughts on BRK.B SharesBerkshire Hathaway has been a cornerstone of investor portfolios for decades, generating steady shareholder value under Warren Buffett’s nearly 60-year leadership. The spotlight now shifts to the next chapter, with Greg Abel as CEO, while Buffett remains executive chairman.
Given a premium valuation, one can still opt to wait for some more time before adding this Zacks Rank #3 (Hold) stock to their portfolio.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Berkshire Hathaway B (BRK.B - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned +0.5%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Insurance - Property and Casualty industry, which Berkshire Hathaway B falls in, has gained 0.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Berkshire Hathaway B is expected to post earnings of $5.53 per share, indicating a change of +7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $20.82 points to a change of +1% from the prior year. Over the last 30 days, this estimate has changed +0.8%.
For the next fiscal year, the consensus earnings estimate of $21.59 indicates a change of +3.7% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Berkshire Hathaway B is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Berkshire Hathaway B, the consensus sales estimate of $95.3 billion for the current quarter points to a year-over-year change of +3%. The $385.6 billion and $404.9 billion estimates for the current and next fiscal years indicate changes of +3.8% and +5%, respectively.
Last Reported Results and Surprise HistoryBerkshire Hathaway B reported revenues of $93.68 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $5.25 for the same period compares with $4.47 a year ago.
Compared to the Zacks Consensus Estimate of $95.1 billion, the reported revenues represent a surprise of -1.5%. The EPS surprise was +8.92%.
Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Apple (AAPL 1.52%) has long been the biggest name in the Berkshire Hathaway (BRKA +0.73%) (BRKB +0.71%) portfolio. Berkshire's now-retired leader, Warren Buffett, often spoke glowingly about Apple and its ecosystem, calling it an "extraordinary consumer franchise" with massive brand loyalty. In 2020, he went even further, calling Apple "probably the best business I know in the world."
But Buffett spent the last few years of his time as Berkshire Hathaway's CEO divesting the conglomerate of Apple. In mid-2023, Berkshire had 914,560,382 shares of Apple stock. At the time, it was trading at $193.97 per share, and Berkshire's total Apple stock holding was valued at $177.39 billion.
Today, Berkshire Hathaway has 227,917,808 shares, with a total market capitalization of $66.35 billion. It's still a sizable stake, accounting for 20% of Berkshire's portfolio, but that's a long way from the roughly 50% weighting it used to have.
Image source: The Motley Fool.
But here's where things get really interesting -- Apple stock price has risen 50% since Berkshire began selling its shares. And had Buffett kept all of that Apple stock, Berkshire's position would be worth roughly $267.34 billion today -- a gain of nearly $90 billion.
Nobody likes to leave money on the table, and Buffett said in April that he believes he sold Apple stock "too soon." But was Buffett right to sell Apple stock at all?
I think the answer is clear. And after the recent Worldwide Developers Conference (WWDC), I'm even more firmly convinced.
Today's Change
(
-1.52
%) $
-4.49
Current Price
$
291.14
WWDC was underwhelming Apple's WWDC is an annual event where the smartphone maker regularly unveils new products and long-awaited updates. Investors and customers have long been waiting for Apple to get more involved in artificial intelligence (AI) -- its Siri chatbot was cutting-edge when it launched more than a decade ago, but its limitations have become clear as generative AI chatbots have become more common.
This year, Apple finally introduced Siri AI, an advanced version of its digital personal assistant. Apple calls it a "profoundly more intelligent, knowledgeable, and capable Siri" that can answer questions about content on users' screens, search across apps, and get real-time information from websites.
However, the app failed to wow investors and analysts, and it won't even be available to all Apple customers -- users in the European Union and China won't get Siri AI this fall. Shares of Apple ended up falling more than 5% for the week -- surely not the response that Apple executives had hoped for.
Data by YCharts.
For the record, Buffett is still a big fan of Apple stock and the company's management. But portfolio management is important, and Berkshire Hathaway was badly overexposed to Apple, leaving it tremendously vulnerable should something have happened to the company.
"I'm very happy to have it be our largest holding," Buffett said in April. "I was not happy to have it be as large as almost everything else combined."
And selling Apple has allowed Berkshire Hathaway to make other purchases that will be important for the company. It opened a large position in Alphabet, buying $20 billion in shares and agreeing to purchase another $10 billion through a private placement. The conglomerate has also picked up shares of Macy's and Delta Air Lines, and increased its stake in The New York Times.
Buffett and Berkshire's new CEO, Greg Abel, know the importance of portfolio diversification. Even though Apple stock is up big since mid-2023, selling the stock was the right move. WWDC reinforces that Berkshire was wise to reduce its exposure rather than being so heavily concentrated in a single company.
