No. of Recommendations: 4
“ Berkshire Hathaway had one of its worst days in the past 12 months on Wednesday, at least compared with other shares. Class A shares in the conglomerate led by billionaire Warren Buffett fell 1.6%, versus a 0.6% gain for the broader market.
A variety of relatively minor factors, rather than a single piece of major news, seem to be behind the decline.
CFRA analyst Cathy Seifert noted that Apple, Berkshire’s largest holding as of Sept. 30, is down 11% since the start of the year.
There could be some profit-taking after the stock narrowly topped the S&P 500 for 2024. The Class A shares gained 25.5% last year, about a half percentage point more than the market, Seifert noted.
On the flip side, even though the company is the largest U.S. property and casualty insurer, its main focus is on auto insurance, via Geico, and reinsurance. Insurance losses from the Los Angeles fires shouldn’t be a major issue for Berkshire.
What’s Next: A turning point could come in late February, when it reveals its current stockholdings, or in early March, when Berkshire is expected to report its fourth-quarter results. Analysts see operating earnings after taxes rising 16%, according to FactSet.
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—Andrew Bary
