Berkshire Hathaway’s (BRK.B) stock is rising sharply as investors rotate out of high-flying technology stocks and get more defensive with their portfolios.
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Berkshire Hathaway’s more affordable Class B stock is up 3% on Feb. 4 and having its best day of relative performance versus the benchmark S&P 500 index in nearly a year. The stock is now up 7% in the last five trading sessions after moving sideways for most of the past year.
Investors seemed to sour on Berkshire after longtime CEO Warren Buffett announced he was stepping down at the end of 2025. Greg Abel became the new CEO on Jan. 1 of this year. However, analysts say investors are again turning to Berkshire Hathaway as a defensive mega-cap stock with the market sliding lower and investors growing more risk averse.
Berkshire Hathaway’s Safe-Haven Status
With its diversified businesses and massive cash holdings, Berkshire Hathaway is seen as a safe-haven stock by many investors. The holding company’s various businesses range from insurance to railroads. It is also sitting on $350 billion of cash, more than any other U.S.-based company.
Many analysts and investors have criticized Buffett for not putting Berkshire’s cash to work and making more acquisitions. But that cash hoard is what makes the company strong in times of market uncertainty, say some analysts. Buffett’s preference for blue-chip stocks is also paying off. Core equity investments such as Coca-Cola (KO) and Chevron (CVX) are up 11% and 20%, respectively, this year.
Is BRK.B Stock a Buy?
Only a couple of analysts offer ratings and price targets on Berkshire Hathaway’s Class B stock. So instead, we’ll look at the shares’ year-to-date performance. As one can see in the chart below, BRK.B stock has risen 0.83% so far in 2026.
