Dear Berkshire Hathaway Shareholders, Save the Date: February 28

Tech Rally Leaves Value Stocks Like Berkshire in the Shadows

Recently, technology stocks have fueled the broader U.S. market’s momentum, while large value names such as Berkshire Hathaway have seen less excitement. Investors focused on diversified holdings, insurance, industrials, and consumer giants are paying close attention to companies with significant cash reserves.

Anticipation Builds for Berkshire’s 2025 Annual Report

All eyes are now on Berkshire Hathaway as it prepares to unveil its 2025 annual report and earnings on February 28. This event will mark CEO Greg Abel’s debut annual letter, accompanying the company’s full-year financial results. With interest rates on the rise and capital allocation strategies under scrutiny, Abel’s insights are expected to shed light on Berkshire’s next strategic moves.

Berkshire’s Diverse Portfolio and Cash Reserves

Under the leadership of Warren Buffett until the end of 2025, Berkshire Hathaway stands out as a vast conglomerate. The company’s distinctiveness comes from Buffett’s long-standing value investing approach and an enormous cash reserve exceeding $380 billion, providing unmatched flexibility for investments or share repurchases.

In recent months, Berkshire has made several notable strategic moves. Toward the end of 2025, the company returned to the media sector by acquiring approximately 5.07 million shares of The New York Times for about $352 million—its first major newspaper investment in years—while quietly reducing its positions in Apple and Amazon.

Berkshire also increased its holdings in the energy sector, adding to positions in Chevron and Chubb, while trimming some financial stocks. In January 2026, the company finalized its purchase of OxyChem, a leading chemical producer, for nearly $9.7 billion. These actions reflect the new management’s careful selection of investments, maintaining a substantial cash cushion. Analysts note that while these moves haven’t significantly impacted the share price yet, they may indicate areas of focus for Greg Abel going forward.

Berkshire’s Stock Performance Remains Subdued

Over the past year, Berkshire Hathaway’s share price has edged up by around 2%, lagging behind the S&P 500’s impressive 16% gain. While the company’s businesses have delivered steady results, investors are concerned that the $381.7 billion cash reserve is not generating significant returns, and that the new leadership has temporarily halted share buybacks. In 2025, Berkshire reduced its stakes in major holdings like Apple and Bank of America, signaling a cautious approach. Although earnings growth provided some support, the large cash position and lack of major acquisitions have kept the stock’s performance muted.

Berkshire’s Valuation and Market Expectations

From a valuation perspective, Berkshire’s shares are not considered cheap. The stock trades at about 1.5 times book value, higher than the typical 1 times book value for banks or insurers. Its trailing price-to-earnings ratio is roughly 16, compared to the financial sector average of 14. This premium suggests that investors expect continued stability and are watching closely to see if Berkshire will put its cash to more productive use.

Key Date: February 28 for Berkshire’s Annual Update

Berkshire Hathaway will release its annual report and fourth-quarter earnings on February 28 at approximately 8 a.m. ET. This highly anticipated update will include Greg Abel’s first letter to shareholders as CEO. Since taking over on January 1, Abel is expected to outline his strategic vision and discuss plans for the company’s substantial cash reserves. Investors will be looking for clues on capital allocation, including the potential for increased share buybacks, renewed acquisition activity, or the introduction of dividends. Abel’s commentary, delivered alongside the final 2025 results, will serve as an early indicator of Berkshire’s direction under new leadership.

Analysts generally predict that Berkshire’s fourth-quarter results will cap off another strong year. The company previously reported a record annual operating profit of $47.44 billion, and consensus estimates suggest 2025 earnings could reach similar levels, with quarterly operating profit expected between $12 billion and $15 billion. Key drivers are likely to include robust insurance underwriting, stable performance from BNSF Railway, and consistent returns from Berkshire Hathaway Energy. However, net income may fluctuate depending on investment gains or losses tied to market volatility.

Wall Street’s View on Berkshire Hathaway

Wall Street analysts maintain a moderately positive outlook on Berkshire Hathaway stock. Among six analysts tracked by Barchart, the consensus rating is “Moderate Buy,” with two recommending “Strong Buy” and four suggesting “Hold.” The average 12-month price target of $532 implies a potential upside of nearly 6% from current levels.

Analysts generally commend Berkshire’s strong competitive position and substantial cash reserves, but many emphasize that, with Buffett stepping down, the new management team must demonstrate its ability to sustain growth—a topic likely to be addressed in Abel’s upcoming letter.