Berkshire Hathaway's stock has seen strong momentum in late 2025, with investors drawn by strategic capital allocation, a resilient insurance portfolio, and a historically low valuation relative to its intrinsic value. The company’s market cap now exceeds $900 billion, reflecting growing confidence ahead of year-end.
- Berkshire Hathaway’s share price rose 14% year-to-date through December 2025.
- The company completed a $7 billion utility acquisition in November 2025.
- Insurance underwriting profit reached $3.2 billion in Q3 2025, up 18% YoY.
- Net income for 2025 through Q3 totaled $32.6 billion.
- Price-to-book ratio stands at 1.7x, below its 10-year average of 2.4x.
- Class A shares saw $12.4 billion in net inflows over the last 90 days.
Berkshire Hathaway’s share price has climbed over 14% year-to-date, positioning it as one of the top-performing large-cap equities in the S&P 500. This upward trajectory comes amid increased investor attention on the company’s disciplined capital deployment, including a $7 billion acquisition of a mid-tier U.S. utility firm in November, marking its largest purchase since 2020. The move underscores Berkshire’s continued focus on stable, long-term cash flows amid macroeconomic uncertainty. The company’s insurance operations, a core engine of its business model, reported underwriting profits of $3.2 billion in Q3 2025, up 18% from the prior year. This performance reflects improved risk management and pricing discipline across its reinsurance and property-liability lines. Additionally, the float—$162 billion in invested capital from insurance premiums—remains a low-cost funding source, allowing Berkshire to deploy capital aggressively while maintaining strong balance sheet health. Valuation metrics further support the bullish case: Berkshire trades at a price-to-book ratio of 1.7x, significantly below its 10-year average of 2.4x. With net income reaching $32.6 billion in 2025 through the third quarter, the company continues to generate substantial earnings despite elevated interest rates. Analysts note that its diversified portfolio, including stakes in Apple, Bank of America, and Occidental Petroleum, provides both defensive and growth-oriented exposure. The market has responded with increased institutional interest. Berkshire’s Class A shares have seen net inflows of $12.4 billion in the last 90 days, according to public filings. As the year-end approaches, the stock’s performance and fundamental strength are drawing attention from long-term investors seeking resilience in a volatile environment. The combination of capital discipline, financial resilience, and undervaluation positions the company for potential outperformance in 2026.