Up 17% in 2025, Has Warren Buffett-Led Berkshire Hathaway Run Up Too Far, Too Fast?

From Nasdaq: 2025-04-06 18:05:00

Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has surged 17% YTD, outperforming the S&P 500’s 8.3% decline and ranking among the top 40 best-performing S&P 500 components in 2025. With a market cap of $1.15 trillion, Berkshire is the sixth-most valuable U.S. company, trailing behind Apple, Microsoft, Nvidia, Amazon, Alphabet, and Meta Platforms.

Despite Berkshire’s recent success, some investors may question its current valuation. The company’s portfolio has shifted, with a reduced focus on public equities and increased emphasis on controlled businesses. Berkshire’s strong operating earnings of $47.4 billion in 2024 indicate a healthy performance, making it a reasonably priced value stock worth considering.

While Berkshire’s stock may appear overvalued at first glance, a deeper analysis reveals the company’s sound financial position and strategic investments in controlled businesses. With a significant cash reserve, Berkshire is well-positioned to capitalize on compelling opportunities in the market. For investors seeking long-term growth, Berkshire remains a solid choice.



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