Berkshire Hathaway (BRK.B) | News Based Sentiment Analysis

• On September 3, 2025, the announcement that Kraft Heinz would split into two publicly traded companies – “Global Taste Elevation Co.” and “North American Grocery Co.” – caused the stock to plummet approximately 7%, a move Warren Buffett expressed disappointment with despite Berkshire’s $9 billion stake. This split introduces uncertainty for investors, as Buffett’s disapproval signals potential concerns about the long-term strategy.
• Berkshire Hathaway significantly increased its stake in UnitedHealth Group, purchasing 5 million shares following a mid-August filing, which led to a 14% increase in UnitedHealth’s share price as of September 4, 2025. This move demonstrates confidence in UnitedHealth, even with ongoing challenges like rising medical costs and a Justice Department investigation, and proved to be a successful investment in the short term.
• Despite a 9% year-to-date increase, Berkshire Hathaway Class B shares (BRK.B) were trading around $490 in September 2025, having fallen nearly 15% after Warren Buffett’s May announcement of his retirement as CEO at the end of 2025. This volatility highlights investor sensitivity to the upcoming leadership transition, even with positive overall performance.
• Berkshire Hathaway’s mid-August 13F quarterly portfolio update revealed a new $857 million equity play in steelmaker Nucor as of June 30, 2025, alongside increased stakes in UnitedHealth Group, Lennar, and D.R. Horton. These strategic investments signal a focus on diversifying Berkshire’s portfolio and capitalizing on opportunities in key sectors.
• While Berkshire Hathaway reported earnings per share (EPS) of $5.17 for the fiscal quarter ending June 30, 2025, missing the average analyst estimate of $5.24, the company is expected to announce earnings for the fiscal quarter ending September 30, 2025, on November 7, 2025, with an estimated EPS of $3.82. This slight miss in Q2, coupled with lower expectations for Q3, suggests a potential slowdown in earnings growth.
• For the first half of 2025, Berkshire Hathaway B (BRK.B) reported a 12.94% reduction in earnings to $182.169 billion, and net profits plunged by 60.47% to $17.129 billion, despite maintaining a 10.26% year-to-date stock growth and 5.17% over the past 52 weeks. This significant decline in earnings and profits, despite stock growth, raises questions about the sustainability of Berkshire’s performance.
• As of June 30, 2025, Berkshire Hathaway held a massive $340 billion in cash and short-term investments, primarily in U.S. Treasury bills, generating $5 billion in investment income during the first six months of 2025, an 11.3% increase over the same period in 2024. This substantial cash pile provides a strong financial cushion and flexibility for future investments.

The Investment Story: September was a month of contrasts for Berkshire Hathaway, marked by strategic portfolio adjustments, a disappointing Kraft Heinz split, and mixed earnings signals, all while navigating Warren Buffett’s impending retirement.

What It Means for Investors: The portfolio shifts and Kraft Heinz situation introduce some uncertainty, but Berkshire’s massive cash reserves and continued investment activity suggest long-term value. Investors should closely monitor the Q3 earnings report on November 7, 2025, and the impact of the leadership transition.

Looking Ahead: Investors should pay attention to the Q3 2025 earnings call and further details on Berkshire’s investment strategy. The Kraft Heinz split, planned for the second half of 2026, will also be a key event to watch.

The Bottom Line: Despite some short-term headwinds and the looming leadership change, Berkshire Hathaway remains a fundamentally strong company with a fortress balance sheet and a proactive investment approach. The company’s ability to navigate these challenges will be crucial for maintaining its long-term success.