The company's Class A and Class B shares touched fresh record levels, finishing October up 8.9% while both the S&P 500 and Nasdaq Composite posted monthly declines. Offsetting these equity gains, Berkshire's stake in Alphabet fell to $29.6 billion after search revenue missed expectations, likely pushing the position into the red. Meanwhile, the firm offloaded $69 million in DaVita shares on Tuesday to keep its ownership within agreed limits.
Key points
The firm's shares outpaced the wider market in October as capital rotated out of major te…: The firm's shares outpaced the wider market in October as capital rotated out of major tech equities.
Berkshire's Alphabet position fell behind Coca-Cola to become the conglomerate's fourth-l…: Berkshire's Alphabet position fell behind Coca-Cola to become the conglomerate's fourth-largest equity holding.
The recent DaVita sale was mandated by a 2024 agreement capping Berkshire's ownership sta…: The recent DaVita sale was mandated by a 2024 agreement capping Berkshire's ownership stake at 45%.
Sources checked by our analysis pipeline: 1
(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)
Berkshire ekes out some new highs, but October rally stalls
Berkshire Hathaway shares managed to set a few more all-time highs in an otherwise lackluster week of trading.
The Class A stock closed Monday at a record high $821,931 but ended the week up just 0.3% at $815,600.
It spiked at Friday's open to almost $822,929, but that wasn't enough to top its record intraday high of $824,765 set on Thursday of last week as Berkshire entirely erased what turned into a 15% pullback after Warren Buffett announced last year that he would step down as the company's CEO.
The more widely held Class B shares also set a new record high close on Monday, finishing that day at $548.56.
But their high during Friday's session of $550.47 is enough for a new all-time intraday record, edging out last Thursday's $549.96.
Industry efforts by major recordkeepers are successfully curbing premature retirement withdrawals for low-income and short-tenure workers who switch jobs. By shifting small orphaned balances into safe harbor accounts, the consortium protects participants from immediate tax hits and early withdrawal penalties. However, broader participation across workplaces remains critical before these funds can reliably complete the journey into workers' next company plans.
Investors tracking Reliance Group companies face a stark contrast between recent initial public offering enthusiasm and longer-term market performance. While the conglomerate's newest market entrant surged immediately following its trading debut, core and affiliated entities have experienced sharp declines across multi-year evaluation periods. This divergence highlights shifting investor sentiment across various segments of the Mukesh Ambani-led empire.
Underlying macroeconomic trends are challenging the durability of current market highs as manufacturing price pressures threaten to derail long-term disinflation expectations. Surging artificial intelligence investments risk crowding out private borrowing while straining domestic energy grids far beyond projected needs. Additionally, concentrated wealth and mounting household debt threaten aggregate demand, creating significant headwinds for consumer-driven corporate earnings.