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Berkshire Hathaway (NYSE:BRKa)’s Q2 2025 earnings report, scheduled for release on August 2, 2025, will be a key indicator of the company’s ability to handle macroeconomic challenges while maintaining Greg Abel’s disciplined approach to capital allocation. With Abel expected to take on the CEO role by year-end, this transition signifies a significant shift in Berkshire’s strategic direction from Warren Buffett’s long-standing leadership.
Key Highlights
- Berkshire has shifted to a more hands-on, disciplined approach to capital deployment, moving away from Buffett’s hands-off style under Abel’s leadership. By 2024, Berkshire’s cash reserves soared to $334.2 billion—a near double from 2023—fueling strategic reallocations into sectors like energy and infrastructure. Notably, Berkshire’s increased stake in Occidental Petroleum (NYSE:OXY) underscores Abel’s focus on recession-resistant energy assets aligned with his operational expertise.
- Investors will watch closely to see if Berkshire resumes share repurchases in Q2 after sitting out since May 2024. The stock has dropped over 14% from its May 2025 peak.
- Berkshire Hathaway’s insurance operations form the backbone of its business, accounting for approximately 25% of total revenue and fueling long-term growth. Its extensive market exposure, disciplined pricing strategy, and strong underwriting performance help the segment stay resilient through market downturns.
- Wall Street expects little to no buybacks in Q2. UBS analyst Brian Meredith predicts none in 2025 or 2026, citing the stock’s premium to his intrinsic value estimate. A restart would likely boost investor confidence, signaling Warren Buffett sees the stock as undervalued.
- Investors are eyeing whether Berkshire’s cash pile kept climbing after hitting a record $328 billion at the end of Q1, adjusted for Treasury bills and $5 billion in energy and rail. This cash level, Buffett’s preferred measure, will be a key focus.
Source: InvestingPro
BRK.B Q2 2025 earnings August 02, 2025
Technical Analysis Perspective
- BRK.B has been in an upward trend, consistently following a rising support line since October 2022.
- The support for the rising trendline remains firm between 458 and 450.50 this week.
- The March-April 2025 double top pattern between 539 and 542 triggered the current decline.
- The stock may initially trade sideways between 486 and 470, followed by a break below 470 to target the 458-450.50 support zone.
- Ideally, BRK.B should decline to 458-450.50 to reaffirm the ongoing uptrend.
- A decisive move above 486 would negate the downside view and open the path for a rise to 539-542, assuming the market supports a buyback.
Weekly Candlestick Chart
BRK.B Seasonality Chart
Since 2006, BRK.B has closed August with a 2.5% gain and September with a 0.3% gain in 68% and 53% of the years, respectively.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk is at the investor’s own risk. We also do not provide any investment advisory services.