Key insights
- The author suggests Berkshire Hathaway (BRK.B) is forming a strong support level around $460, citing multiple bottoms and recent share buybacks. While upside potential may be limited, the author believes BRK.B could benefit significantly from a major market downturn due to its large cash reserves. This could provide a modest bullish signal for the stock.
The stock has been flat for over a year with multiple 10-20% dips (April 2025, August 2025, and April 2026).
There are now multiple bottoms, which suggests a very strong support around $460.
The company is slowly starting to buy back their shares, which also suggests we are nearing the bottom.
Personally, I have been adding whenever the stock price reaches $460.
BRK.B might not have the same upside potential it had in the last few decades, but who knows...
Maybe if we see another 2000-like crash, they will greatly benefit with their enormous cash pile and 50+ years of stock picking experience.