Is Berkshire Hathaway stock overvalued at $501?

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.

How could Greg Abel change capital allocation?

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.

What is the Buffett premium and why does it matter now?

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.

What near-term levels should traders watch?

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.

Global Market Insights

BRK-B Stock Today: December 28 – Buffett Exit Nears, Abel’s Playbook

ByHuzaifa Zahoor December 28, 2025December 28, 2025

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.