Berkshire Hathaway’s stock (BRK.B) remains one of the strongest performing assets in the market despite recent volatility. Currently trading at $514.40, the stock continues to show strong bullish momentum, sitting well above its 50-day, 100-day, and 200-day moving averages.

• Trend Analysis: The long-term uptrend remains intact, with BRK.B making higher highs and higher lows.
• RSI Levels: The Relative Strength Index (RSI) is at 68, signaling the stock is nearing overbought territory but not yet extreme.
• PPO Indicator: The Percentage Price Oscillator (PPO) is showing positive momentum, indicating continued strength.
• Support & Resistance:
  • Key support levels: $500, $450, and $428.
  • Immediate resistance: $520, followed by all-time highs.

BRK.B remains one of the most defensive plays in a weak market, benefiting from its conservative cash-heavy balance sheet and strong earnings growth.

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Fundamental News Update

While most investors are caught in the turmoil of recent market downturns, Berkshire Hathaway is sitting on a massive $318 billion cash pile, positioning Warren Buffett to capitalize on upcoming market weakness.

Key Fundamental Highlights:

• Cash Reserves: $318 billion in cash and equivalents, nearly double the amount held at the end of 2023.
• Buffett’s Market Strategy: Historically, Buffett only buys aggressively when markets correct by 20% or more, meaning he could still be waiting for a deeper drop before making significant moves.
• Stock Sales: Berkshire sold off a significant portion of Apple (AAPL) and Bank of America (BAC) in 2024, likely in anticipation of better opportunities ahead.
• Defensive Outperformance: Despite the S&P 500 being down 4% YTD, BRK.B is up 9% for the year.
• Earnings Growth: Berkshire reported a 70% increase in Q4 operating profits, showcasing the strength of its diversified businesses.

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What’s Next for Berkshire?

Buffett’s strategy remains clear: wait for a market-wide correction before deploying capital. Investors will get insight into Berkshire’s next moves when the company reports Q1 earnings in May. Given its strong cash reserves and history of making aggressive purchases during market downturns, BRK.B remains a top defensive stock in a volatile market.

🚨 Final Thoughts: While BRK.B is near overbought conditions, the stock remains one of the safest long-term holds in the market. A pullback to the $500 range could provide an attractive entry point for investors looking to ride Berkshire’s next big move.