Buffett’s Precision Castparts unit appears to be unlocking value after a six-year write-down, with Barron's suggesting PCC could be worth up to $100B. Berkshire’s stock benefited modestly this week, and the company continued to buy back shares, signaling confidence in the hidden value within its asset base. A sustained PCC re-rating could catalyze a broader BRK.A/BRK.B valuation rebound in the near term.
Berkshire's Greg Abel outlined two AI plays: supplying energy to data centers and expanding Alphabet investment; the data-center buildout could boost energy demand for Berkshire Hathaway Energy, while the Alphabet stake supports Berkshire's AI exposure and potential capital gains. Abel also cited Japan investments, yen-bond issuance, and Taylor Morrison as long-term bets, with community acceptance as a key risk.
Greg Abel said Berkshire's energy business could benefit from AI data-center expansion as it added Alphabet as Berkshire's third-largest common stock holding. This ties energy infrastructure demand to tech demand, signaling potential upside in long-duration contracts and asset monetization for Berkshire Energy.
Buffett appears to still call Berkshire's stock decisions, with Alphabet increasing its stake and rising into BRK's top holdings. Q2 activity included a $4.5B share buyback and a $6.8B Taylor Morrison acquisition, while a HomeServices/NAR settlement preserves Berkshire's exposure but reduces risk. Portfolio shifts and capital allocation remain the primary near-term catalysts.
Michael Burry publicly states he’s done with Berkshire Hathaway, with little detail on why or whether the stance is temporary. The lack of specifics makes it hard to gauge BRK.A fundamentals, but the public challenge from a high-profile investor could intensify scrutiny of Berkshire’s strategy and risk-reward. Further comments or Berkshire’s response will determine near-term price action.
Greg Abel's Berkshire is deploying its record cash hoard into buybacks and selective equity investments, including Alphabet and the Taylor Morrison deal. Q2 operating earnings rose 16% even as insurance weakened; the cash deployment reverses a prior pattern of treasury exposure. The move signals disciplined capital allocation and potential per-share value lift.
