Berkshire Hathaway (BRK-B) Shows Short-Term Weakness Amid Strong Fundamentals and Leadership Transition

Technical Analysis

Berkshire Hathaway Inc. (BRK-B) closed at $486.21 on June 25, 2025, down 1.47%. The intraday range was $486.18 to $494.68, with current price near key support at $485.14 and below the 50-day moving average of $507.85, indicating near-term weakness. The 200-day moving average sits at $482.47, providing a secondary support level. The 14-day RSI of 45 signals neutral momentum with a slight bearish bias. The MACD remains negative at -8.31, consistent with downward momentum. Volume traded was 2.00 million, below the average 5.42 million, suggesting subdued participation on the decline. Resistance is marked at $490.38, a level recently tested but not breached.

For the next trading day, the stock is likely to trade within $485–$490 range, with a slight downward bias given the negative MACD and recent close below the 50-day MA. Over the upcoming week, absent major news catalysts, BRK-B may remain in consolidation with slight pressure toward the $485 support, though any rebound above $490 could restore short-term bullishness.

Fundamental Analysis

BRK-B trades at a trailing P/E of 12.92, below the broad market average, indicating relative valuation strength and potentially undervalued status. The EPS TTM of $37.52 supports solid underlying profitability. The company’s market cap stands at approximately $1.05 trillion, validating its status as a mega-cap conglomerate with diverse business lines and significant asset base. The discounted cash flow intrinsic value model estimates a fair price near $500.42, slightly above the current price, suggesting modest upside potential on a fundamental basis.

The share price is below its 52-week high of $542.07 but well above its 52-week low of $403.82, placing it in the mid-to-upper range for the annual cycle. Analyst consensus from 10 estimates leans bullish with a median target of $465.50 and a consensus rating of “Buy” based on 6 buy and 4 hold opinions. No sell or strong sell ratings are reported.

Recent corporate developments include Warren Buffett’s planned retirement by end of 2025, transferring CEO responsibilities to Greg Abel. Although Buffett’s exit introduces transition risk, Abel’s long tenure and extensive operational roles mitigate major execution concerns. Market commentary references Berkshire Hathaway’s entrenched competitive advantages and diversification, underscoring credible long-term sustainability despite near-term adjustments.

Intrinsic Value and Long-Term Investment Potential

The intrinsic value from discounted cash flow analysis approximates $500.42, suggesting the stock trades slightly below intrinsic worth, providing a reasonable margin of safety. Berkshire’s broad industry exposure, strong cash flow generation, and disciplined capital allocation underpin its resilience and capacity for long-term value creation. Despite uncertainty around leadership change, the company’s durable moat and conservative financial management support its status as a stable core holding with moderate growth potential over a multi-year horizon.

Long-term investors prioritizing steady capital appreciation and risk mitigation may find BRK-B’s profile appealing, given the broad portfolio of subsidiaries and exposure to key economic sectors. The relatively low forward valuation and strong earnings base add to its fundamental appeal for multi-year holding periods.

Overall Evaluation

Berkshire Hathaway Inc. (BRK-B) currently presents as a Hold with Buy characteristics. The technical backdrop shows short-term weakness and consolidation below the 50-day MA and resistance near $490. The fundamental picture suggests fair valuation close to intrinsic, supported by steady earnings, strong cash flow, and significant market capitalization. Transition risk from Buffett’s departure remains a watch factor but is counterbalanced by management continuity.

The trading setup implies potential sideways to mildly bearish near term, while the underlying financial strength and valuation metrics favor accumulation on dips for investors focused on long-term growth and stability. The lack of immediate upside triggers and recent downward momentum temper more aggressive positioning.

In summary, BRK-B balances current technical caution with solid fundamental underpinnings, positioning it as a cautiously optimistic candidate for investors expecting stable returns and durable value despite transitional leadership.