Introduction
In my last post, I shared my thoughts on why Warren Buffett does not pay dividends. Today, I want to step away from his philosophy and look at the actual numbers. As I study to build my FIRE (Financial Independence, Retire Early) portfolio, I want to calmly check Berkshire Hathaway’s current stock price, financial health, and market demand.
Stock Price: A Big Gap with the Market
Recently, the S&P 500 index went up very fast. It jumped about 9% in a short time, crossing the 7,100 mark. But during the same time, Berkshire Hathaway’s stock dropped about 1%. This created a 9.7% performance gap between the company and the broader market.
Many people are ignoring this stock right now because it is not an exciting tech company. But as a value investor, I try not to follow the crowd blindly. When a famous company is ignored by the market, it is usually a good time to study it closer.
Financials: The Business is Growing
If the stock price is dropping, does it mean the business is failing? Not at all.
Looking at the first quarter of 2026, the company’s operating profit actually increased by 18%. The railroad business (BNSF) profit went up 13%, and the insurance business also made excellent money. The internal business engine is running very well, but the stock price is simply ignoring this good news.
Benjamin Graham, Warren Buffett’s teacher, taught investors to always look for a “Margin of Safety”. This safety cushion happens when you buy a business at a price much lower than its actual value. Right now, I see a growing gap between the company’s real profits and its stock price.
Supply and Demand: Who is Buying?
So, if normal investors are ignoring this slow stock, who is buying it? The answer is Berkshire Hathaway itself.
In March 2026, after waiting patiently for 22 months, the company used $234 million to buy back its own shares. Warren Buffett and CEO Greg Abel only buy back their company’s stock when they are absolutely sure it is selling at a significant discount to its true value. When the world’s best capital allocators decide their own stock is on a bargain sale, I think we should pay attention.
The $397 Billion Cash Shield
The most interesting part of Berkshire Hathaway’s balance sheet is their cash. Right now, they are holding about $397 billion in cash.
They are not rushing to buy expensive stocks in this hot market. They are simply waiting. When the market eventually crashes, Berkshire will use this massive pile of cash to buy great businesses at a deep discount.
Conclusion: Relying on the Master’s Choice
As you know, my basic strategy is index investing. The S&P 500 ETF is the main part of my personal pension portfolio. Warren Buffett famously advised putting 90% of cash in a low-cost S&P 500 index fund and 10% in short-term government bonds.
However, with the market soaring endlessly, adding more money to the S&P 500 right now feels very burdensome. Buying the index at the absolute top is emotionally heavy.
In this situation, how about putting a little money into Berkshire Hathaway? Instead of buying traditional bonds for safety, we could take a share of Berkshire’s massive cash shield. Investing is always a personal decision, but in this confusing market, I find myself wanting to rely on the master’s choice.
I do not know if Berkshire’s stock price will go up tomorrow. But to protect my family’s money from an unpredictable future, this old-fashioned company seems like a wise addition to my portfolio. What do you think about holding Berkshire instead of bonds? Let’s think about it together.