Investing in Berkshire Hathaway stock used to be simple. You bought it, you forgot about it, and you let the "Oracle of Omaha" do the heavy lifting. But it's January 2026, and the vibe has shifted. Warren Buffett, now 95, has officially stepped back from the CEO role. Greg Abel is in the driver’s seat. The cash pile? It’s sitting at a staggering, almost comical $382 billion.
Most people look at that number and think Berkshire is failing to find deals. They’re wrong. That mountain of cash isn't a failure; it’s a weapon.
The "Buffett Premium" and the Reality of 2026
For decades, people paid extra for Berkshire Hathaway stock just because Buffett was at the helm. This "Buffett premium" was real. If he bought a stock, the rest of the world followed. Now that he’s "going quiet"—his own words from his final shareholder letter late last year—that premium is evaporating.
Honestly, that’s the best thing that could happen for a new investor.
The stock is trading around $742,000 for Class A shares and just under $500 for Class B. While the S&P 500 has been screaming higher on the back of AI hype, Berkshire has been... quiet. It’s underperformed the benchmark recently. Some call it boring. I call it a correction in expectations.
What’s Actually Inside the Portfolio Right Now?
If you think Berkshire is just Geico and some old Coca-Cola shares, you haven't been paying attention. The portfolio has undergone a massive facelift.
- The Tech Pivot: They recently initiated a $4.9 billion position in Alphabet (Google). They already own a massive chunk of Apple and a slice of Amazon.
- The Energy Play: Greg Abel, who came up through the energy side, has doubled down on Occidental Petroleum and Berkshire Hathaway Energy.
- The Insurance Engine: This is still the heart of the beast. Insurance underwriting earnings tripled in the last reported quarter.
The shift toward Alphabet is particularly interesting. Buffett famously avoided tech for years because he didn't "understand" it. Seeing Berkshire grab 17.9 million shares of Google’s parent company tells you that the new guard—Abel, along with Todd Combs and Ted Weschler—isn't afraid to hunt where the growth is.
Class A vs. Class B: Does it Matter?
You’ve basically got two ways to play this. BRK.A is the "original" stock. It has never split. One share costs more than a nice house in the suburbs. BRK.B was created to be accessible.
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One share of A is convertible into 1,500 shares of B. But it doesn't work the other way around. You can't turn your B shares into an A share. If you’re a retail investor, B is your go-to. It gives you the same exposure to the underlying businesses without needing a million-dollar brokerage account.
Interestingly, Berkshire didn't do any share buybacks in the last nine months of 2025. That’s a signal. When Buffett or Abel don't buy back their own stock, they’re telling you they think it’s "fairly valued," not "dirt cheap." They are patient. They can wait.
Why the $382 Billion Cash Pile is a "Warning"
Think about the discipline required to sit on $382 billion in Treasury bills yielding maybe 3.6% while everyone else is getting rich on AI startups. It’s insane, right?
But look at the history. Berkshire hoards cash when the market is frothy. They did it before 2008. They did it before the 2000 tech bubble. By staying liquid, they are the only ones left with cash when the "once-in-a-century" crash happens. They aren't just an investment firm; they are the world’s largest opportunistic pawn shop. When a massive company needs a bailout, they call Omaha.
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Is Berkshire Hathaway Stock Still a Buy?
It depends on what you want. If you’re looking for a stock that will double in six months because of a new chatbot, Berkshire is not for you. You’ll be bored to tears.
However, if you want a fortress.
If you want a company that owns the railroads (BNSF), the power grid, the insurance, and the brands you use every day.
Then it’s still the gold standard.
Current valuations show the stock trading at about 185% of its tangible book value. Over the last decade, that average has been closer to 196%. So, strictly speaking, you’re getting a slight discount compared to the historical norm.
Actionable Steps for Investors
If you're looking to move into Berkshire Hathaway stock today, don't just dump your life savings in at once. The market is volatile, and the transition to the "Abel Era" is still in its early days.
- Watch the $490 Support Level: For Class B shares, the $485–$495 range has shown strong support recently. Buying near these levels provides a better margin of safety.
- Use the "Gift Tax" Strategy: If you're looking to pass wealth to family, Class B shares are perfect. Since they trade around $500, you can stay well under the $19,000 annual gift tax limit while giving a high-quality asset.
- Diversify Your "Safety": Don't make Berkshire your only safe haven. While it’s a fortress, the lack of buybacks suggests management isn't seeing an immediate "screaming buy" opportunity in their own shares.
- Follow the 13F Filings: Watch for the next SEC filing in February. If the Alphabet position grows, or if they start nibbling at other "Magnificent Seven" stocks, it signals a definitive shift in their investment philosophy that could re-rate the stock higher.
Berkshire is entering a new chapter. It's less about the cult of personality around one man and more about a massive, diversified machine. It’s slower, sure. But in a market that feels increasingly like a casino, having a share of the house isn't a bad move.