Should You Buy Berkshire Hathaway (BRK.B) While It’s Hovering Around $500?

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One is reminded, upon examining the peculiar conglomerate of companies whose valuations exceed the grand figure of $1 trillion, of the puzzles one might encounter, wherein the question is posed: what, in this image, appears as an unwelcome guest? In truth, among the distinguished members of this exclusive club-those companies, much like noble houses, holding their membership through either their remarkable prowess in the realm of artificial intelligence or their vast technological empires-one is struck by the singular presence of Berkshire Hathaway (BRK.A) (BRK.B). Its place is assuredly peculiar, and yet, it remains there, somewhat like an elderly uncle at a ball of young dancers.

Now, one might suppose that the very presence of Berkshire Hathaway amongst these modern marvels of AI prowess is to be questioned. Its $500 Class B shares-modest in comparison to its more illustrious cousins-merely serve to emphasise its oddity. And yet, does its presence truly merit such scrutiny? Should one, in the pursuit of wealth and investment, consider securing a piece of this entity while it hovers around such a curious sum?

The Arguments of Doubt

Allow me to indulge in a bit of a devil’s advocacy, if I may, for indeed, several reasons compel a discerning investor to pause and ponder before proceeding with such a purchase. Chief among these reasons is the impending departure of the venerable Warren Buffett from his post as CEO. One could not imagine a time when the very name of Berkshire was not intertwined with his own. Such a departure, set for January 2026, may unsettle even the most stoic of investors, as one imagines the company’s aura, so long bound to his personal touch, might falter without his guidance.

And, indeed, one could not dismiss the troubling matter of valuation. Presently, Berkshire’s forward price-to-earnings ratio rests at a rather respectable 22.8. Yet, this places its stock perilously near its all-time high, one might argue, which certainly does not inspire confidence in a bargain. Even Mr. Buffett himself, it would appear, is somewhat disenchanted with the present valuation, having refrained from sanctioning any stock buybacks since the previous year.

The economic landscape, too, is hardly conducive to unreserved optimism. With Jerome Powell, the Federal Reserve Chairman, announcing the troubling combination of rising inflation and unemployment, one cannot help but wonder how Berkshire’s various subsidiaries might weather such storms. Certainly, some may not emerge unscathed.

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The Arguments of Confidence

And yet, one must not be so quick to discard this company altogether. Though it may appear a somewhat awkward member of the trillion-dollar club, it has nonetheless earned its place. Mr. Buffett, as mentioned, is not entirely abandoning his beloved Berkshire; he shall remain as Chairman, guiding his successor, Greg Abel, whom he has praised as capable of steering the company with an even more deft hand. Indeed, in the annual shareholder meeting of May 2025, Mr. Buffett expressed his firm belief that under Mr. Abel’s leadership, Berkshire would flourish even further.

As for the valuation concerns, let us not be hasty in dismissing them. True, the company’s multiples may appear somewhat high, but we must remember that Berkshire Hathaway has, in the past, been similarly priced and yet continued to deliver impressive growth. There is a certain consistency to the firm’s long-term success that leads one to believe that this time, too, history will prove the doubters wrong. For those inclined towards a long-term investment, the current valuation should not serve as an impediment.

The fears concerning economic turbulence, while not without merit, may not be as foreboding as some believe. The Federal Reserve’s future actions, such as interest rate cuts, may very well bolster the economy in a manner unforeseen. Moreover, if the economic climate turns grim, Berkshire Hathaway has long been regarded as a fortress-its diverse holdings acting as a shield against the stormy winds of recession. It is entirely possible that the stock will fare better than most in such a case.

Moreover, one must consider the unparalleled diversification offered by Berkshire. With more than 60 subsidiaries and stakes in nearly 40 other publicly traded companies, it provides an investment portfolio akin to an entire exchange-traded fund (ETF), though far more cohesive and intentional.

Final Thoughts

In conclusion, while the question of purchasing Berkshire Hathaway’s Class B shares at this time is fraught with near-term uncertainties, I am inclined to suggest that the long-term investor may indeed find merit in such a purchase. Berkshire’s flaws, if one may call them that, are more concerns of the present moment than of the distant future. As the market inevitably moves in cycles, one may find that in the grand scheme, Berkshire’s solid foundation and diversified nature make it a sound choice.

Thus, if one’s investment strategy aligns with a steady, long-term horizon, the current price of $500 may well be the appropriate entry point-though not without the healthy skepticism that one ought to apply when navigating the labyrinth of high finance. It is, after all, not merely the riches of the present that we seek, but the enduring legacy of prosperity in the years to come. 🌿

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2025-09-27 12:54