Berkshire Hathaway – The Finance Class

While tech stocks had their worst month in more than a year, Berkshire Hathaway quietly finished October at record highs. The company run by Greg Abel, who took over as chief executive after Warren Buffett, gained 8.9% in October — while the S&P 500 fell 0.9% and the Nasdaq dropped 5.3%.

That gap tells the story of October in one line: money moved out of fast-growing, high-spending tech companies and into steadier, cash-rich businesses.

What Happened

Berkshire’s Class A shares closed Monday at a record $821,931. They ended the week at $815,600, up 0.3% for the week. During Friday’s trading they briefly reached $822,929, just below the intraday record of $824,765 set the previous Thursday.

The more widely held Class B shares also set records. They closed Monday at $548.56, a record close, and reached a new intraday high of $550.47 on Friday, just above the previous session’s $549.96.

For the month as a whole, Berkshire rose 8.9%. That may not sound dramatic, but in a month when the Nasdaq fell 5.3%, it was one of the best performances among large companies.

Why It Happened

Investors rotated, which is a simple idea: they sold one kind of stock and bought another. In October, they sold AI-heavy tech stocks because they worried about how much those companies are spending on data centres and chips, and whether the spending will pay off soon enough.

Berkshire was on the receiving end of that rotation. It is a conglomerate — a company that owns many different businesses, including insurance, railroads, energy and manufacturing — plus a huge stock portfolio. It also holds an enormous pile of cash. When markets get nervous, that mix looks safer than a company betting hundreds of billions on one trend.

Berkshire’s own portfolio moves also caught attention. The company sold $69 million of DaVita shares on Tuesday, leaving it with 28.3 million shares worth $5.3 billion. That sale was needed to keep its stake at or below 45% as DaVita buys back its own shares.

At the same time, the value of Berkshire’s Alphabet stake fell. It had reached a third-quarter high of $40 billion in early August, but dropped to $29.6 billion by Friday after Alphabet shares plunged nearly 13%. That made Coca-Cola, worth $37.6 billion in Berkshire’s portfolio, its third-largest holding again.

Why It Matters

Berkshire’s record matters for two reasons. First, it shows confidence in the company after its leadership change. Buffett announced in May 2025 that Abel would succeed him, and the stock fell sharply afterwards. It has now recovered all of that ground and more, which suggests investors are comfortable with Abel in charge.

Second, it shows how quickly market leadership can change. For much of the past few years, a handful of tech giants drove most of the market’s gains. In October, the leaders were different: steady earners, insurers, energy companies and Berkshire itself. That does not mean tech is finished — these rotations happen often — but it is a reminder that no single trade works forever.

What Happens Next

Berkshire reports third-quarter results on November 7, according to market reports. That report will show how its operating businesses performed and whether it bought back more of its own stock, which it resumed doing in 2026 after buying back nothing in 2025.

Investors will also watch whether the rotation lasts. If tech stocks stabilise and their AI spending starts to show clearer returns, money could flow back. If worries about spending continue, steadier stocks like Berkshire could keep attracting buyers.

Final Thoughts

Berkshire’s October is a useful lesson for ordinary investors. You do not have to own the hottest stock of the moment to do well. Sometimes, owning a diversified business that earns steady cash, holds plenty of reserves and does not bet everything on one idea is exactly what works when the market mood changes. The trick, as always, is that nobody rings a bell when the mood is about to change back.

Key figures:

Berkshire Class A: record close $821,931 on Monday; week-end close $815,600, up 0.3% for the week
Berkshire Class A intraday record: $824,765 (previous Thursday)
Berkshire Class B: record close $548.56 on Monday; new intraday high $550.47 on Friday
October performance: Berkshire +8.9%, S&P 500 -0.9%, Nasdaq -5.3%
DaVita sale: $69 million on Tuesday; 28.3 million shares left, worth $5.3 billion, stake kept at or below 45%
Alphabet stake: $40 billion at its third-quarter high in early August, down to $29.6 billion by Friday

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.

Sources: CNBC’s Warren Buffett Watch newsletter on Berkshire’s October records (October 31, 2026, summarised at https://biztoc.com/x/7c147d1a09b6c183); TradersUnion report on Berkshire’s October records (https://tradersunion.com/news/stocks/show/4046324-berkshire-hathaway-october-records/)