Berkshire Hathaway shares climbed to their highest level in eight months this week, with the Class B shares closing Tuesday at $512.37 — their strongest finish since November 28. The rally suggests the conglomerate may be positioned to narrow its performance gap with the broader market.
The Class B shares ended the week at $511.54, down 5.2% from their all-time closing high of $539.80 reached on May 2 of last year, the day before Warren Buffett announced his plans to step down as CEO at the end of 2025. Class A shares closed Friday at $766,600, about 5.3% below their record close of $809,350.
Closing the Gap With the S&P 500
According to reporting in Barron’s, Berkshire’s recent rally still has room to run. While the stock remains behind the benchmark S&P 500 by 7.6 percentage points, the conglomerate has erased more than half of its 17.5 percentage point deficit from just two months earlier.
The upward momentum received a boost from UBS analyst Brian Meredith, who raised his price target on the B shares to $585 from $570, and on the A shares to $877,848 from $854,596, while maintaining a buy rating. Meredith also increased his earnings estimates and noted positively a Barron’s report suggesting Berkshire may have repurchased as much as $11 billion of its own stock in the second quarter.
Portfolio Holdings Driving Performance
Strong gains in three of Berkshire’s largest equity holdings have contributed to the rally. Apple, the portfolio’s top position valued at more than $70 billion, has risen 13.6% year-to-date. Coca-Cola, the third-largest holding at $35 billion, has jumped 25% for the year after reporting earnings that exceeded expectations and raising its full-year outlook. Bank of America, the fourth-largest position now worth nearly $32 billion, has gained 12.6% on the year.
Berkshire’s cash position stood at $397.4 billion as of March 31, up 6.5% from year-end. When excluding rail cash and subtracting T-bills payable, the figure was $380.2 billion, up 3.0% from December 31. The company repurchased $234 million of its shares in the first quarter of 2026.
Second Quarter Results on the Horizon
Investors will get clarity on Berkshire’s second-quarter stock buyback activity when the company releases its quarterly results, expected on Saturday, August 8. The actual repurchase figure will confirm or revise the estimate reported by Barron’s.
With a market capitalization exceeding $1.1 trillion, Berkshire continues to be one of the largest publicly traded companies in the United States. The conglomerate’s diversified business model, spanning insurance, railroads, utilities, manufacturing, and a significant equity portfolio, has historically provided resilience across market cycles.
As Berkshire works to close its performance gap with the S&P 500, the strength of its major equity holdings and potential significant share buybacks could provide additional catalysts for the stock’s performance in the coming months.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/01/-berkshire-hathaway-shares-hit-eight-month-high.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
