Live Updates > Live Update Details
2025-10-28 11:20:05
Berkshire Hathaway Receives a Rare "Sell" Rating: 1. Investment bank Keefe, Bruyette & Woods (KBW) recently downgraded Berkshire Hathaway's Class A shares from "Market Perform" to "Underperform." This is the only "Sell" rating among the six analysts who continue to cover the company. 2. KBW analyst Meyer Shields identified the following key concerns in his report: Succession Risk: With Buffett handing over the CEO reins to Greg Abel on January 1, the company faces "historically unique succession risks." Inadequate disclosure and Buffett's diminishing influence could deter investors. Macro and Earnings Challenges: Earnings pressures are surfacing across several core business segments, including: GEICO's auto insurance underwriting margins may have peaked, declining property catastrophe reinsurance rates, lower short-term interest rates, tariffs weighing on BNSF's railroad business, and the risk of the withdrawal of the alternative energy tax credit. 3. Berkshire Hathaway's stock price has lagged the broader market due to multiple factors. Its Class B shares fell 0.82% on Monday, and have risen only 7.8% so far this year, far below the 16% increase in the S&P 500 over the same period. Analysts expect the above challenges to continue to drag down its stock price performance over the next 12 months.
