Berkshire Hathaway (BRK.B) Forms Death Cross Signal
Snack-Sized Version:
Berkshire Hathaway (BRK.B) formed a Death Cross technical signal. This pattern occurs when the 50-day moving average drops below the 200-day average. The signal arrives as the “Buffett premium” fades following Warren Buffett’s retirement in May. Since then, Berkshire shares have underperformed the S&P 500 by 34%. Class B shares are also approaching oversold levels, according to market data and company reports.
| Technicals: At a Glance | |
|---|---|
| Signal | Death Cross (50-day MA below 200-day) |
| RSI | Class B shares nearing 30 (oversold) |
| Context | Post-Buffett retirement; $344B cash pile |
| Performance | Lags S&P 500 by 34% since May |
Source: Market data; company filings.
Read the Full Meal:
Berkshire Hathaway’s stock is flashing a rare technical warning sign. The stock recently formed a “Death Cross” for the first time since August. This signal, however, appears in a new context for the conglomerate. Warren Buffett retired in May, and his successor, Greg Abel, now leads the $860 billion firm. Since Buffett’s exit, Berkshire’s shares have risen only 5%. Meanwhile, the S&P 500 soared over 35%. This underperformance highlights investor uncertainty. The firm also holds a record $344 billion in cash. Investors monitor Berkshire’s investor page for updates on Abel’s direction.
The Post-Buffett Leadership Test
- Capital allocation: The firm holds a record $344 billion in cash, raising questions about future deployment.
- Growth drivers: Berkshire’s value focus has caused it to lag the recent AI and tech-driven market rally.
- Strategy: Investors speculate if Greg Abel will differ from Buffett, especially regarding assets like Bitcoin.
- Risks: The key risk is the erosion of the “Buffett premium” as the market recalibrates its trust in new leadership.
Quick links
- Official source: Annual Reports
- IR hub: Annual Meeting Information · SEC filings
- Our coverage: Berkshire Hathaway Adjusts Amid Market Swings· Berkshire Hathaway News Hub · Latest: Warren Buffett Stepping Down (BRK.B)
Why this can matter for BRK.B holders
- Continuity: Greg Abel’s silence on crypto suggests he will likely maintain Buffett’s core value-investing legacy.
- Cycle timing: The last Death Cross in August marked a market bottom; however, this signal’s context is different.
- Technical support: The stock’s low Relative Strength Index (near 30) indicates it may be technically oversold.
What to watch next
- Official filing: Monitor Berkshire’s upcoming 10-Q filing for balance sheet updates and cash deployment.
- Next event: Watch for the next annual shareholder meeting for Greg Abel’s first major address.
- Capital deployment: Investors will watch if Abel uses the $344 billion cash pile for acquisitions or buybacks.
Mini FAQ
What is a Death Cross?
A Death Cross is a technical chart pattern where a short-term moving average (like the 50-day) crosses below a long-term one (like the 200-day).
Will Greg Abel buy Bitcoin for Berkshire?
It is unlikely, though Berkshire’s investment in Nu Holdings shows minor exposure to crypto-related banking.
Why is Berkshire underperforming the S&P 500?
The S&P 500 has been driven by tech and AI stocks, while Berkshire’s value strategy has largely avoided this sector.