Berkshire Hathaway (NYSE: BRK.B) has dipped from its record highs earlier this year, and the pullback has some investors wondering: Is this the beginning of something more serious or a golden opportunity in disguise?
With shares of the B class now trading below the $490 mark, the question becomes not whether the stock is cheap in a traditional sense, but whether it still offers the steady hand and shrewd capital allocation that investors have come to expect.
And with a major leadership change looming, the stakes feel a little higher than usual.
Key Points
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Greg Abel is ready to lead, and Buffett will stay on as chairman to guide the transition.
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The company’s decentralized model and strong businesses make it resilient beyond any one leader.
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At under $490, Berkshire offers long-term value with buybacks and a rock-solid balance sheet.
Every Great Stock Pulls Back, Even Berkshire
Over the past two decades, the stock has seen multiple corrections of 10–20% and each time bounced back stronger. Historically, those dips have been opportunities to buy.
The B shares now trade under $490, while the Class A shares, yes, still north of $700,000 each, are priced for collectors and institutions. For most investors, the B shares offer the same economic exposure, minus the eye-watering price tag.
But what’s behind the recent slide? A few culprits stand out, including a deceleration in performance versus the S&P 500, concerns about what to do with Berkshire’s record $189 billion cash pile, and perhaps most critically, the elephant in the room, Warren Buffett stepping down as CEO.
The Buffett Question, What Happens Next?
There’s no sugarcoating that Buffett’s upcoming departure from the CEO role at the end of 2025 marks the end of an era.
For decades, investing in Berkshire Hathaway has been shorthand for “I trust Warren Buffett to make smart decisions with my money.”
But Buffett isn’t disappearing. He’ll remain chairman of the board and continue to be involved in high-level decisions. And more importantly, his chosen successor, Greg Abel, isn’t a newcomer.
He’s been by Buffett’s side for over two decades, running Berkshire’s non-insurance businesses, which now generate more than half of the firm’s operating earnings.
In fact, Abel is often described as Buffett’s opposite in style but twin in substance. He’s operationally disciplined, keeps a low profile, and has a deep understanding of capital allocation.
Buffett himself said in a recent interview that if he died tomorrow, “Greg would take over the next morning without missing a beat.”
What Investors Overlook About The Future
A lot of retail investors assume Berkshire is a one-man show. But that hasn’t been true for years.
Buffett delegated significant investing authority to Todd Combs and Ted Weschler over a decade ago.
Today, those two manage a combined portfolio of more than $30 billion, larger than most mutual funds.
Under the surface, Berkshire is already running like a decentralized holding company. Each subsidiary, GEICO, BNSF Railway, Berkshire Hathaway Energy, and dozens of others, operates independently. That structure doesn’t need Buffett in the weeds of every decision.
And if you’re worried about Berkshire becoming too conservative with its mountain of cash, consider that the company spent almost $30 billion on stock buybacks over the past 12 months alone, reducing share count at attractive valuations. That’s a vote of confidence in Berkshire’s future earnings power.
Berkshire also recently upped its stake in Occidental Petroleum to over 28%, giving it regulatory clearance to acquire the company outright. That might be Buffett’s final masterstroke, a massive energy bet with favorable cash flow dynamics and optionality that Wall Street hasn’t fully priced in.
Should You Buy at This Level?
Berkshire trades at around 1.4 times book value today, near the bottom of its historical range. It’s not a screaming bargain, but it’s attractive relative to the S&P 500, especially considering the balance sheet strength and downside protection.
And unlike many conglomerates, Berkshire isn’t weighed down by leverage or bloated costs. Its operating companies generate nearly $40 billion in annual earnings.
Yes, a bear market would likely bring the stock down with it. But it’s also one of the safest ports in the storm, given its fortress-like balance sheet and ability to pounce when others are forced to sell. Just ask anyone who bought in March 2009, or March 2020.
Warren Buffett’s retirement may make headlines, but it doesn’t change the DNA of Berkshire Hathaway. The company’s next chapter will look a little different, but not radically so. If anything, the transition has been happening quietly for years.
In other words, Berkshire’s best days may not be behind it, they might just look a little different going forward.