Subject: brk, new VL,
Berkshire Hathaway likely ended a
pretty good 2025 with decent
December-quarter results. (The compa
ny was set to announce full-year results
shortlyafterwewenttopresswiththisIs
sue.) It should be noted that the con
glomerate was up against very difficult
comparisonswith2024, andthus it likely
registeredayear-over-year profit decline.
However, this shouldn’t detract fromthe
company’s likely strong results in 2025,
comparedwith its historical averages. A
relativelydecenteconomyandreducedin
terestratesprobablyliftedresultsinBerk
shire’s non-insurance businesses during
the fourth quarter, while the insurance
armlikelycontinueditswinningways.
We lookfor solidearningsgrowthin
eachofthenexttwoyears. It lookslike
the economymight well hold up better
thanpreviouslyexpectedover thenext12
to 18months, helped, to an extent, by
lower borrowing costs, which ought to
boost the company’s non-insurance busi
nesses. What’s more, Berkshire’s insur
ance operations have benefited from a
secular upturn for quite some time.
Despitesomepotentialheadwinds,webe
lieve there is still roomto run over the
nextyearortwoonthisfront.
We have rolled out our projections
andnowlookforearningsper share
inthevicinityof $32.00by the2029
2031 time frame. The company’s diver
sifiedstatusought to continue toserve it
welloverthelongrun.
Thesesharescurrentlyarenot inthe
goodgracesof ourTimelinessRank
ingSystemwithascoreof 4 (Below
Average). The stockhas rallied theper
formance of theS&P500 Index over the
pastyear, largelyreflectingtheretirement
of Berkshire’s iconic Warren Buffett as
CEO(announced lastMay) at the endof
2025.AlthoughGregAbel certainlyseems
tobeahighly-competent replacement, as
he has beenwith the company formore
thanaquarter of a century, the ‘‘Buffett
premium’’ appears tohavebeenremoved
fromtheseshares.Thatbeingsaid,BRKB
stockoffersampleprice-recoverypotential
forthe3to5yearsahead.However, inves
torswill likelyhavetobepatientasthere
might be some bumps along theway as
Mr.Abelestablisheshisownlegacy.
AlanG.House February27,2026

" BERKSHIREHATH.‘B’NYSE-BRKB
497.55 21.4 22.0
NMF
1.10 Nil
TIMELINESS 4 Lowered6/13/25
SAFETY 1 New6/18/10
TECHNICAL 2 Raised2/27/26
BETA .95 (1.00=Market)
18-MonthTargetPriceRange
Low-High Midpoint(%toMid)
$436-$685 $561(15%)
2029-31PROJECTIONS