When people talk about legendary stocks, Berkshire Hathaway — Warren Buffett’s sprawling conglomerate — is near the top of the list. But Berkshire’s stock isn’t like your average public company’s shares. Its price behavior, valuation metrics, and investment story are a blend of corporate performance, investor psychology, and decades of Buffett’s evolving philosophy.
In this article, we’ll explore why Berkshire’s stock price looks the way it does, how it has performed historically and recently, and what that performance means for investors today. We’ll break down big concepts into clear explanations, anchored with data and expert insights.
A Tale of Two Share Classes
Berkshire Hathaway trades in two main share classes:
- Class A (BRK.A) — the original, extraordinarily expensive share. As of late December 2025, Class A shares were trading in the neighborhood of ~$749,000 per share.
- Class B (BRK.B) — introduced later to make shares more affordable, trading around ~$498 per share.
Class B shares trade at roughly 1/1500th the price of Class A, while still representing the same economic interests, making BRK.B often the more relatable benchmark for most investors.
This dual structure — especially the staggeringly high price of Class A — means regular comparisons to everyday stocks can feel misleading. It’s better to think in percentage returns, relative valuation, and fundamentals than absolute share price per se.
How Berkshire’s Price Has Moved Over Time
Long-Term: An Investing Legend
Over decades, Berkshire has vastly outpaced broad market indexes. One long-term analysis shows Class B shares growing from about $21 in 1996 to hundreds of dollars decades later — delivering annualized returns near ~11%, comfortably ahead of many benchmarks.
Even more striking is the full picture when looking back to Buffett’s arrival in 1965, when shares were priced in the teens. Since then, the stock has delivered profound gains, deeply rewarding long-term holders.
Recent Performance: Bright Spots and Headwinds
2025 Snapshot
- Berkshire’s Class B shares have shown modest volatility: a recent year-to-date performance recording around a slight downward drift relative to the S&P 500 — roughly –12.9% over one year, while the broader market rose.
- Class A and B stocks have also undergone strong rallies at times, with Class A jumping tens of thousands of dollars within weeks.
This mixed performance underscores an important point: Berkshire is not immune to short-term market sentiment, especially during times of macroeconomic uncertainty or leadership changes.
Leadership Transition Impact
A significant near-term driver of stock price movement in 2025 has been Warren Buffett’s announced retirement as CEO after more than six decades. The news rattled some investors, prompting share price corrections and increased volatility.
That kind of psychological, narrative-driven impact is common with iconic companies where leadership becomes part of the investment story.
Valuation: What Is the Stock Really Worth?
One of the most important lessons for understanding Berkshire’s price is that book value alone is not a full story. Warren Buffett himself has remarked that traditional book value understates the company’s true worth, because many of Berkshire’s key businesses are held on the balance sheet at historical cost rather than current economic value.
Competing Valuation Views
Here’s where analysts diverge:
- Some assert the stock appears undervalued — models based on intrinsic value and excess returns suggest shares could be worth significantly more than current prices. For example, one analysis shows intrinsic value estimates more than 30% above market price.
- Others argue the stock looks fairly valued to slightly overvalued based on metrics like the price-to-earnings ratio in comparison to peers. Why the divergence? It all comes back to the complexity of valuing Berkshire:
- It’s a conglomerate with dozens of wholly-owned businesses
- It holds a massive investment portfolio
- It keeps huge cash reserves that may be deployed differently in the future
Because of these layers, valuation isn’t a simple formula — it’s a blend of accounting metrics, business outlook, and investor expectations.
What Drives the Stock Price?
Let’s break down the core factors that influence Berkshire’s share value:
1. Intrinsic Performance of Underlying Businesses
Berkshire owns insurance giants, railroads, energy companies, retail brands, and more. The profitability and growth prospects of these businesses directly feed into overall company value — just not always in a straightforward or immediately reflected way.
2. Investment Portfolio Returns
Part of Berkshire’s performance depends on its large portfolio of publicly traded securities. Gains or losses here — particularly in stocks like Apple and other major positions — can materially affect earnings trends and investor confidence.
3. Management Decisions
Buffett and his team’s choices about deploying cash (e.g., acquisitions, share repurchases, or Treasury bills) influence valuation. Interestingly, Berkshire has sometimes chosen not to repurchase stock when management believes prices are high relative to intrinsic value — a disciplined, value-first approach.
4. Market Sentiment and Leadership Confidence
As seen in 2025, shifts in investor confidence — especially around succession — can move the stock even without immediate changes in fundamentals.
So, Should You Care About the Stock Price?
The short answer: yes — but with context.
For most individual investors:
- Berkshire’s absolute share price is less important than long-term performance trends.
- A multi-decade holding strategy has historically rewarded patient investors.
- Using valuation tools (like intrinsic value vs. market price) is often more insightful than simple price tracking.
Berkshire is often described not just as a collection of assets, but as a well-capitalized machine for allocating capital wisely over time. That means stock price movements are best understood over years, not days or months.
Conclusion: A Unique Story in the Market
Berkshire Hathaway’s stock price today is the product of exceptional history, diversified operations, and disciplined capital allocation — all wrapped in the legacy (and now transition) of one of the world’s most famous investors.
Unlike more volatile growth stocks or index funds driven by trends, Berkshire’s share price reflects long-term value creation and investor confidence in its-managerial approach. Sometimes that means steady growth; sometimes it means patience during sideways markets.
The key takeaway? Don’t glaze over the share price alone. Look deeper:
📌 Understand business fundamentals
📌 Compare price to intrinsic value
📌 Watch leadership strategy — especially in the post-Buffett era
If you do that, you’re not just watching a number on a screen — you’re following one of the most remarkable investment stories in modern financial history.