Is Berkshire Hathaway stock a smart buy in 2025 for South Africans?

What is Berkshire Hathaway?

How much is the Berkshire Hathaway stock?

The price of Berkshire Hathaway stock is rising this week. As of now, BRK.B is trading at $506.18, up 0.61% in the last 24 hours, but showing a slight dip of 0.17% over the past week.

With low volatility and steady performance, Berkshire Hathaway presents a solid option for South African investors seeking stability in the US market.

Our full analysis on Berkshire Hathaway stock

We have conducted a comprehensive review of Berkshire Hathaway’s latest financial results alongside a rigorous analysis of its stock performance over the past three years. Leveraging insights from a blend of financial indicators, technical signals, market data, and peer benchmarking—processed through our proprietary modeling—we are now positioned to deliver a robust assessment of this iconic conglomerate. So, why might Berkshire Hathaway stock once again become a strategic entry point into the global diversified financial sector as we approach 2025?

Recent Performance and Market Context

Berkshire Hathaway’s stock continues to be a bellwether for stability and growth within the global financial services sector. As of 30 May 2025, Class A shares (BRK.A) stood at $758,577 and Class B shares (BRK.B) at $506.18, underlining its status among the world’s most substantial and stable equity assets.

• Price Momentum: Over the trailing twelve months, BRK.A appreciated by +24.60% and BRK.B by +25.26%, comfortably outperforming both the S&P 500 and the financials sector indices. Year-to-date, BRK.B advanced +11.67%. This resilience is even more impressive considering that Q1 2025 delivered a 14% year-over-year decline in operating earnings, reflecting the company’s ability to maintain market confidence even during periods of operational headwinds.
• Macroeconomic Tailwinds: In a global context, the ongoing recovery in consumer demand and stable regulatory environments across major developed markets have provided a constructive backdrop for Berkshire’s diversified business model. The group’s exposure to insurance, railroads, utilities, and manufacturing insulates it from cyclical swings in any one segment, allowing for steady compounding even as competitors face volatility.
• Positive Recent Developments: Despite an initial 6% share price dip in response to the announcement of Warren Buffett’s upcoming transition as CEO (to be succeeded by Greg Abel at year-end 2025), investor concerns have abated. The stock rapidly recouped most of its losses, confirming the depth of market trust in Berkshire’s succession planning and diversified leadership.

The recent performance suggests that Berkshire Hathaway’s shares reflect substantial market confidence, and the presence of broad sector tailwinds sets the stage for above-average returns moving forward.

Technical Analysis

Technical signals for Berkshire Hathaway—particularly Class B shares—point toward a market poised for further appreciation, aided by solid support levels and constructive momentum:

• Indicators: The 14-day Relative Strength Index (RSI) for BRK.B at 54.6 is neutral, suggesting the stock is neither overbought nor oversold—a promising stance for prospective buyers seeking optimal entry points.
• MACD: While the MACD (-0.61) currently signals “sell,” the overall technical summary on most major trading platforms registers a “buy,” indicative of underlying accumulation and trend stability.
• Moving Averages:
• Short- to intermediate-term moving averages (5-day: $504.26, 20-day: $505.74, and 50-day: $506.14) are all aligned in “buy” territory, providing a cushion of support and signalling healthy recovery potential.
• Longer-term averages (100/200-day: $508.58/$516.28) remain above the current level, serving as dynamic resistance and a possible springboard should macro catalysts trigger renewed momentum.
• Support and Resistance: BRK.B’s key support sits at $501.20—a level successfully defended during recent volatility. Resistance remains at its 52-week high of $542.07. The proximity to support, coupled with a neutral technical backdrop, may offer medium-term investors an attractive entry as the stock positions for its next move.

These technical dynamics, particularly when interpreted in conjunction with a positive fundamental context, suggest Berkshire Hathaway may be building the foundation for another bullish phase.

Fundamental Analysis

Berkshire Hathaway’s underlying financial metrics and strategic positioning continue to justify its reputation as one of the world’s pre-eminent compounding engines:

• Revenue & Profitability:
• Trailing twelve months’ revenue sits at $371.29 billion, with net income at $80.9 billion.
• Profit margin (21.79%), return on equity (13.19%), and return on assets (5.79%) remain comfortably above diversified financials sector medians.
• The firm’s free cash flow reached an exceptional $64.92 billion in the last fiscal year, providing both operational flexibility and “dry powder” for strategic acquisitions.
• Valuation:
• The current trailing P/E ratio of 13.41 is highly compelling given Berkshire’s risk-adjusted returns, especially in a market where leading quality financials and conglomerates often trade at 18-20x forward earnings.
• EPS for BRK.B stands at $37.76, supporting a robust earnings base.
• Structural Advantages:
• The group’s unrivaled diversity—spanning insurance (GEICO, reinsurance), transport (BNSF), utilities and renewables (BHE), and specialty manufacturing—delivers both resilience and optionality.
• Its $347.68 billion cash position is not only at an all-time high but remains unmatched globally, giving Berkshire unique scope for rapid deployment as acquisition or investment opportunities present themselves.
• Innovation and Moat:
• Continuous reinvestment in energy (notably renewables) and technology-driven insurance platforms positions the company ahead of secular industry shifts.
• The Berkshire brand—meticulously cultivated through decades of prudent stewardship—is a material intangible asset, ensuring ongoing access to attractive deals and countercyclical growth prospects.

Overall, these fundamentals more than justify renewed and serious interest from investors seeking growth with downside protection.

Volume and Liquidity

Market liquidity and trading activity for Berkshire Hathaway continue to affirm institutional and retail confidence:

• Trading Volumes: BRK.A’s average daily turnover sits at 1,127 shares (with 379 traded on the most recent day), reflecting its high price and concentrated ownership among institutional investors. BRK.B, by contrast, displays robust liquidity with 2.84 million shares traded daily (against a 5.46 million average)—more than sufficient to support both strategic entry and active trading.
• Free Float: Both share classes boast substantial free floats relative to their respective investor bases, enabling price discovery and dynamic valuations without undue volatility, even as the group sits near historic highs.

The combination of deep liquidity—especially in BRK.B—and broad participation encourages the view that new buying interest can be absorbed without distorting valuations, thus supporting market integrity and efficient price formation.

Catalysts and Positive Outlook

Several near- and medium-term catalysts stand to unlock further upside for Berkshire Hathaway:

• Strategic M&A Potential: With $347.68 billion in cash, the company is uniquely poised to act swiftly in acquiring undervalued assets or entering new verticals, especially in a market replete with consolidation opportunities.
• Leadership Continuity: Greg Abel, the designated CEO, brings a record of operational excellence from the energy and utilities division, providing assurance of continued strategic discipline and long-term value creation post-transition.
• Portfolio Resilience: Exposure to non-cyclical businesses (insurance, utilities) and ongoing expansion in sectors such as renewables and logistics position Berkshire to ride out economic fluctuations far better than pure-play insurers or industrials.
• ESG and Innovation: Incremental capital deployment into renewable energy and data-driven insurance solutions enhance Berkshire’s alignment with next-generation market trends—an increasingly relevant factor for ESG-focused funds and long-duration capital in South Africa and abroad.
• Market Sentiment: With global investors now focusing on resilience, cash flow, and dividend potential—even for companies that do not currently pay dividends—Berkshire’s ability to generate consistent retained earnings makes it a uniquely attractive holding amid policy and economic uncertainty.

In sum, the strategic flexibility, breadth of opportunity, and robust execution capabilities all serve as powerful tailwinds for Berkshire Hathaway as it transitions into its next era.

Investment Strategies

Berkshire Hathaway’s share structure and diverse business profile enable a range of tactical and strategic investment approaches:

• Short-term Positioning:
• Investors may look to capitalize on any pullbacks toward the robust support at $501 (BRK.B) or $752,155 (BRK.A)—levels repeatedly tested in recent weeks—as entry points for swing trades or tactical allocations.
• The current technical neutrality supports thoughtful incremental buying, especially ahead of expected acquisition announcements or Q2 results.
• Medium-term Horizon:
• The unfolding CEO transition, while generating moderate uncertainty, tends to be more noise than substance for investors with a 6–18 month view. Historical performance suggests a high probability of the stock re-rating higher as markets recognize operational continuity and potential catalysts are realized.
• Upcoming macro events, including US economic data and sector consolidation news, could offer additional favorable entry windows.
• Long-term Allocation:
• Berkshire’s unmatched cash reserves, diversified earnings base, and disciplined capital management create a powerful compounding engine for investors with strategic, multi-year horizons.
• The absence of a dividend is more than offset by the company’s proven ability to redeploy capital at attractive returns, supporting enduring shareholder value creation—an attractive prospect for South African investors seeking hard-currency diversification.

For each horizon, the current price and market structure suggest that accumulation strategies could be particularly advantageous as the stock approaches or bounces from established support levels and ahead of major corporate catalysts.

Is it the Right Time to Buy Berkshire Hathaway?

In consolidating its dominant position across insurance, logistics, manufacturing, and energy, Berkshire Hathaway embodies the qualities modern investors seek: robust cash generation, structural resilience, diverse growth levers, and a management transition that is both well-orchestrated and credible. The fundamentals justify renewed and serious interest, with the current P/E ratio readily defensible against global peers and the technical structure favoring accumulation near support zones.

Looking ahead, the company’s extraordinary cash position, portfolio breadth, and clear succession plan illuminate a promising path through 2025 and beyond. For investors in South Africa and globally, Berkshire Hathaway’s blend of stability, upside potential, and well-positioned leadership seems to represent an excellent opportunity at this juncture—especially as the market discounts transition risk while setting its sights on a new phase of growth.

For those seeking an anchor investment in the global equity universe, Berkshire Hathaway stands as a compelling case, with its recent resilience, technical support, and compelling valuation all pointing to the likelihood of robust performance in the years ahead.

How to buy Berkshire Hathaway stock in South Africa?

Buying Berkshire Hathaway stock online has never been more straightforward or secure for South African investors, thanks to regulated brokers offering global market access. You have two main options: spot buying—where you become a direct shareholder, and CFD (Contract for Difference) trading—allowing you to speculate on price movements with leverage. Both methods are accessible from South Africa with just a few clicks, and your account and transactions are protected by robust financial regulations. Below, we explain each method in detail and highlight the need to compare brokers’ fees and features (see our comprehensive broker comparison further down the page).

Spot Buying

A cash (spot) purchase means you buy actual Berkshire Hathaway shares (most often the affordable BRK.B class) and become a shareholder in one of the world’s most respected companies. Using a reputable online broker, you typically pay a fixed commission per order. For South African residents, this fee can range from R75 to R150 per trade (roughly $4–$8), depending on the platform and account type.

Informations importantes

Example: Suppose the Berkshire Hathaway Class B share price is $506.18 (approx. R9,250 at R18.3/USD). With a $1,000 investment (about R18,300), you can buy around 1.97 shares, factoring in a brokerage fee of about $5 (R90).
✔️ Gain Scenario:
If the share price rises by 10%, your holding is now worth $1,100.
Result: +$100 gross gain, or +10% on your original investment.

Trading via CFD

CFD trading allows you to speculate on Berkshire Hathaway’s share price—whether it goes up or down—without owning the actual share. CFDs are contracts with your broker; you'll typically pay a spread (the difference between buy/sell prices) and, if holding overnight, a financing fee. The crucial advantage is leverage, meaning you can control a larger position with a smaller upfront amount. Regulatory leverage for US shares is usually capped at around 5x for retail investors in South Africa.

Informations importantes

Example: You open a CFD position on Berkshire Hathaway with a $1,000 margin (approx. R18,300) at 5x leverage. This gives you market exposure of $5,000.
✔️ Gain Scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 profit on a $1,000 stake (excluding spreads/overnight fees).

Final Advice

Before investing, it’s essential to compare broker fees, trading platforms, commissions, and other conditions, as these directly impact your returns. Whether you choose direct share ownership (spot buying) for long-term portfolio growth, or CFD trading to actively speculate with leverage, the best method depends on your personal investment goals and risk profile. For detailed comparisons and to find the platform best suited to your needs, refer to our up-to-date broker comparison further down the page.

Our 7 tips for buying Berkshire Hathaway stock

The latest news about Berkshire Hathaway

Berkshire Hathaway demonstrates strong resilience, with Class B shares up 25% year-on-year and positive short-term momentum. Recent stock performance, particularly the 1-year gain of 25.26% on BRK.B, underscores continued investor confidence despite the leadership transition announcement. The stock’s technical outlook is constructive: short-term moving averages give buy signals, and the overall technical rating remains bullish, all of which favors retail and institutional investors in South Africa who access BRK shares via international brokerage platforms.

The company’s cash position reaches a record $347.7 billion, enhancing acquisition prospects and balance sheet strength. This unprecedented liquidity ensures flexibility not only for U.S. operations but also potentially for expansion strategies abroad, including emerging markets like South Africa. Investors in ZA benefit from Berkshire’s growing war chest, as it boosts the potential for new investments, acquisitions, and geographic diversification that could increase exposure to high-growth markets globally.

Leadership succession to Greg Abel, while initially causing volatility, is now viewed as a stabilizing move with positive long-term implications. Buffett’s announcement to step down by the end of 2025 has been absorbed by markets, and his commitment to continue as Chairman reassures investors. Greg Abel’s proven leadership at Berkshire Hathaway Energy—with its significant renewable energy activities—aligns with South Africa’s ongoing energy transition and creates possible future collaboration or investment synergies in the region.

The diversified business model remains a fundamental asset, spanning insurance, rail, utilities, and manufacturing, which is relevant for emerging markets exposure. South African analysts and portfolio managers value Berkshire’s multiple business lines for spreading risk and fostering stable returns. This feature is particularly attractive for pension funds and multi-asset strategies in ZA, seeking to hedge local currency and sector-specific risks by holding global leaders with broad sector and geographic reach.

Berkshire Hathaway’s absence of dividends keeps it focused on capital growth, supported by robust profitability and conservative leverage. With profit margins near 22% and a debt-to-equity ratio of only 19%, the company delivers consistent value creation. This appeals particularly to South African long-term investors and wealth managers seeking growth rather than yield, given the lower dividend taxes and capital gains regulations for offshore holdings under South African tax law.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.