BRK.B
NYSEUS FinancialsBerkshire Hathaway Inc.
5-year price history
- Berkshire's cash pile hit a record $397.4B in Q1 2026 (up from $373B at year-end 2025), giving Greg Abel unmatched dry powder to deploy acquisitions at scale — as demonstrated by the $9.7B Occidental chemicals purchase in early 2026.
- The insurance hard cycle and GEICO's structural improvements support operating earnings compounding, with UBS maintaining a Buy rating and a $595 price target (~25% upside), citing Berkshire's unmatched balance sheet flexibility as unique among large-cap equities.
- Berkshire's diversified operating businesses (BNSF, BHE, insurance float) act as a natural recession hedge — the stock's historically lower volatility makes it a defensive anchor in portfolios during macro uncertainty through 2025–2026.
- Q4 2025 operating earnings fell 29% YoY to $10.2B, driven by a 54% collapse in insurance underwriting profits as GEICO's claims severity outpaced premium growth — undermining the core earnings engine that has historically driven per-share book value growth.
- Warren Buffett officially retired as CEO on January 1, 2026, handing the reins to Greg Abel — while capable, Berkshire has historically traded at a 'Buffett premium,' and any stumble in capital allocation under new leadership could trigger multiple compression.
- A $397B cash pile earning T-bill yields is a near-term drag on returns in a falling rate environment — if Abel cannot find large-scale acquisitions at attractive prices, Berkshire may underperform a simple S&P 500 index fund over a 3–5 year horizon.
Berkshire is the ultimate set-it-and-forget-it US equity holding for Canadian investors who don't want to think about it. No dividend, so no withholding tax. Greg Abel is a Edmontonian (Canadian!) who has run Berkshire Energy flawlessly. The intrinsic value grows approximately 10-12% annually through book value increase and buybacks. Holds in any account type — TFSA is ideal since capital appreciation is tax-free.
| Account | Fit | Why |
|---|---|---|
| TFSA | Ideal | No dividend means zero withholding tax. Capital appreciation compounds entirely tax-free. Perfect TFSA US equity position. |
| RRSP | Good | Tax-deferred capital appreciation; no withholding considerations. Solid RRSP anchor. |
| FHSA | Good | Low volatility for a US equity; reasonable FHSA holding for 3–5 year horizons. |
| Non-reg | OK | Capital gains on disposition; no dividend drag. Works in non-reg but TFSA is better. |
Ideal = best tax outcome · Avoid = material drag or ineligible · Color and symbol, not color alone, indicate fit.
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