Less Income, No Buybacks: UBS Revises Berkshire Hathaway Forecast

UBS analyst Brian Meredith has revised his outlook on Berkshire Hathaway’s Class B shares, trimming the price target from $606 to $591, while maintaining a "buy" rating.

The adjustment reflects tempered expectations for investment income and a lack of anticipated stock repurchases in both 2025 and 2026.

Despite the downgrade, Meredith highlighted Berkshire’s resilience in a volatile economic landscape. With over $347 billion in cash and short-term holdings, the firm continues to benefit from a conservative portfolio structure and limited exposure to global tariffs.

A sizable portion of Berkshire’s cash—$305.5 billion—is currently invested in short-term U.S. Treasuries. This marks a notable 6.6% increase from the previous quarter and places the firm’s holdings ahead of Taiwan’s in the rankings of U.S. debt holders, according to Treasury Department data.

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As Warren Buffett takes a more defensive stance, Berkshire has also been reshaping its equity positions. Recent regulatory filings reveal that the company has fully exited its stake in Citigroup, offloading $1 billion in shares. Additionally, it sold off 48.7 million shares of Bank of America valued at $2.19 billion and divested $46.5 million in Capital One stock.

These moves underscore a broader strategy shift, with Buffett increasingly prioritizing liquidity and capital preservation over equity risk in the current environment.

Alexander Stefanov

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