BRK-B Stock Today: December 28 – Buffett Exit Nears, Abel’s Playbook
Berkshire Hathaway stock is steady as investors look past year-end and the handoff from Warren Buffett to Greg Abel. The Class B shares BRK-B last closed at $501.34, near the 50-day average of $497.35. With market valuations full and Buffett a net seller this year, focus now shifts to operating earnings, buybacks, and cash deployment. Wall Street also debates a possible “Buffett premium” fade. We map the key drivers, near-term levels, and what Abel may prioritize into 2026. For US investors, taxes and rates still matter.
Price, valuation, and buyback setup
Shares ended at $501.34 after a flat session, within a $499.25 to $501.51 range. The 52-week span runs from $440.10 to $542.07. Volume was 2.00 million versus a 4.78 million average. RSI sits at 51, and ADX at 12.7 signals no trend. Price hovers near the Bollinger middle band at $501.79, keeping risk tight as ATR is $6.49.
The stock trades at 15.9 times EPS of $31.28 and 1.54 times book. ROE is 10.1%. Cash per share is $176.80. The Graham number is $477.64, just below the quote. Berkshire Hathaway stock buybacks remain a key lever when management sees value. Watch repurchase pace against intrinsic value, not headlines.
Buffett exit and Abel’s capital playbook
Warren Buffett retires at year-end, and Greg Abel becomes CEO. Berkshire also loses its top messenger, as noted by CNN’s report on Buffett as a pitchman source. Wall Street urges simple goals for Abel: highlight operating earnings, lean on buybacks, and keep communication clear, per CNBC’s preview source. Some also flag a possible Buffett premium fade.
Market valuations look full, and Berkshire was a net seller recently, so patience may continue. We expect more focus on operating earnings from insurance, rail, and energy, plus steady investment income. Berkshire Hathaway stock could see larger buybacks when spreads versus intrinsic value widen. Abel’s discipline on price should guide acquisitions rather than size.
Key drivers to monitor
Insurance results and the combined ratio matter most. Higher rates lift investment income on the float. Watch GEICO profitability, BNSF volume and pricing, and Berkshire Hathaway Energy returns on planned capex. Operating earnings should steer the story in 2026, not market swings. Steady cash generation supports repurchases when Berkshire Hathaway stock trades at fair value.
Momentum is mixed. MACD’s histogram is negative while stochastic shows mid-range. ATR at 6.49 points to calm trading. The street’s target sits at $450, below price. Company grade is B+ with a Buy tilt. Next earnings is slated for Feb 21, 2026. Near-term projections cluster near $505 to $513. Bollinger bands cap upside near $514.
Final Thoughts
Today’s setup is clear. Berkshire Hathaway stock trades near its 50-day trend with neutral momentum and light volume. Macro noise aside, the next leg likely comes from operating earnings and the pace of repurchases under Greg Abel. If shares drift toward a discount versus intrinsic value, buybacks can add per-share value while keeping flexibility high.
Action plan for US investors: – Track the combined ratio, BNSF carloads and pricing, and Berkshire Hathaway Energy returns. – Compare price to book and the Graham number. – Watch cash deployment: buybacks, selective deals, and investment income. – Note the $450 street target versus internal value views.
We prefer gradual entries, adding on weakness toward support near the mid-$490s, and reassessing around the $513 band. Position sizing matters given low ADX and tight ATR. We would avoid chasing breakouts until volume confirms. Taxes and lot selection can lift after-tax returns, so use tax-advantaged accounts when possible. Revisit the thesis at the February earnings update and in the 2025 annual letter for any shifts in Abel’s priorities.
FAQs
It trades at 15.9x EPS and 1.54x book, near fair territory for a high-quality compounder. The Graham number is $477.64, close to the quote, while the street’s $450 target signals caution. Near-term projections cluster around $505 to $513. Valuation looks reasonable if operating earnings grow and buybacks continue.
Expect consistency with sharper execution. Abel is likely to emphasize operating earnings, disciplined deal pricing, and opportunistic buybacks when Berkshire Hathaway stock trades below intrinsic value. He may prioritize organic returns at BNSF and Berkshire Hathaway Energy, while keeping large acquisitions rare unless sellers accept attractive terms.
The Buffett premium is an extra valuation investors assign due to Buffett’s track record and trust. With his retirement, some worry that premium could fade. Clear communication, steady buybacks, and solid operating results under Abel can offset that risk by reinforcing confidence in long-term per-share value growth.
Bollinger bands show $489.92 support and $513.67 resistance, with the middle band near $501.79. ATR of 6.49 frames expected daily swings. RSI around 51 is neutral. A strong move above $514 on rising volume would be constructive. A drop toward $490 may offer better risk-reward for staggered entries.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
