HomeFinance NewsFinanceBerkshire Hathaway Stumbles: Profit Soars, But Stock Takes a Dive

Berkshire Hathaway Stumbles: Profit Soars, But Stock Takes a Dive


Berkshire shares slip after hitting all-time high on big profit gain


Berkshire Hathaway experienced a downturn in stock prices on Monday, although it had previously reached highs due to robust earnings.

The class A shares fell by 2.2%, after reaching an all-time intraday high of $647,039.

Class B shares also declined, settling at $409.14.

This came despite positive news from the conglomerate, with a 28% increase in fourth-quarter operating earnings.

The company’s cash levels also hit a record $167.6 billion.

Despite the positive financial indicators, analysts believe the stock’s optimistic earnings outlook is already incorporated into the current share price.

In an annual letter, Warren Buffett expressed his expectations that Berkshire’s future performance will likely slightly surpass the average company but will be affected by the company’s growing size.

The goal is to avoid significant capital losses and have only a small number of businesses being significant contributors through acquisitions.

Berkshire’s large presence in the S&P 500 is also taken into account.

  • Overall sentiment: neutral
  • Positive

    “Berkshire Hathaway shares last fell by 2.2%. Earlier in the session, the stock reached an all-time intraday high of $647,039, according to FactSet data.”

    “Berkshire’s cash levels also swelled to records. The conglomerate held $167.6 billion in cash in the fourth quarter, surpassing the $157.2 billion record the conglomerate held in the prior quarter.”


    “Berkshire Hathaway shares slipped Monday, despite hitting an all-time high following strong earnings from Warren Buffett’s conglomerate over the weekend.”

    “One analyst said he expects that the stock is fairly valued, saying any upside from the conglomerate’s rosy earnings outlook is already priced into the name.”

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