Berkshire Hathaway’s stock has outperformed the market, rising more than 4% over the past week as investors await a long-awaited letter from Warren Buffett, his first public message since announcing in May that he plans to step down as CEO by the end of the year. The letter, expected to be released Monday, will include Buffett’s thoughts on philanthropy, the company and other matters “that may be of interest to shareholders and others,” Berkshire said. It is expected to be a farewell speech as governor for the 95-year-old financier, who for more than 60 years led the conglomerate that started as a struggling New England clothing company. Berkshire Hathaway’s 4.6% gain last week came as major indexes fell in a tech-led selloff, and the Nasdaq Composite Index fell 3% as investors retreated from high-growth stocks. By contrast, Berkshire’s diverse portfolio of cash-generating businesses, from insurance and railroads to utilities, provided shelter during the market’s recent volatility. BRK.A 5D Mountain Berkshire Hathaway Class A Stock Over the Past 5 Days Investors looking for a safe haven found Berkshire attractive last week with its defensive Geico insurance business and fortress balance sheet. The conglomerate had a record $382 billion in cash at the end of September. Berkshire’s strength also reflected a strong third quarter, with operating income up 34% year-over-year as underwriting revenue surged more than 200% to $2.37 billion. Recently, Buffett, who will retire as CEO at the end of the year, has been in a selling mood. Berkshire has been a net seller of the stock for 12 consecutive quarters, and investors have recently speculated that the Omaha-based company may have written down its massive Apple stake again in the third quarter. “We continue to believe Berkshire’s stock is attractive in an uncertain macro environment due to its defensive business, strong capital position, and improving GEICO growth (which should help lift the stock),” UBS said in a note earlier this week. Still, Berkshire’s stock has underperformed the S&P 500 this year as the so-called “Buffett premium” faded following news of his retirement plans. Stock prices will rise nearly 10% in 2025, while the overall market growth rate is 14.4%.
