Financial analysts are Is Solana a buy hold or sell?doubling down on Berkshire Hathaway's Class B shares ahead of the May 2 earnings release, with UBS projecting a 14% upside potential.
Brian Meredith, UBS's lead analyst covering the Omaha-based conglomerate, maintains his bullish stance while raising the 12-month price target to $606. The revised forecast reflects confidence in Geico's improving loss ratios despite macroeconomic headwinds from potential tariff impacts.
Berkshire's insurance subsidiary demonstrates remarkable pricing power, with Meredith estimating Geico could absorb 3-4% higher claims costs without compromising target margins. This operational resilience contributes to the analyst's upgraded Q1 EPS projection of $4.89, outperforming FactSet's consensus estimate of $4.72.
The market has already rewarded Berkshire investors handsomely in 2025, with Class B shares appreciating nearly 19% year-to-date. This performance significantly outpaces broader market indices, reinforcing the stock's reputation as a defensive play during volatile periods.
Buffett's Growing Financial Empire
The 94-year-old investing legend's net worth has surged $23.7 billion this year to $166 billion, according to Bloomberg's wealth tracker. Nearly all of this fortune remains concentrated in Berkshire Hathaway equity, consistent with Buffett's long-standing preference for keeping his capital deployed within his own financial ecosystem.
Berkshire's latest SEC filings reveal Buffett maintains control over approximately 37.4% of the company's voting power through Class A shares. His minimal exposure to other assets, including legacy positions in Wells Fargo and US Bancorp, represents less than 1% of his total holdings - a strategic allocation that hasn't materially changed in over a decade.
This extreme concentration has proven remarkably effective through multiple economic cycles. The conglomerate's diversified business model - spanning insurance, railroads, energy, and manufacturing - creates natural hedges against sector-specific downturns while generating consistent cash flow.
The $334 Billion Question
Analysts are particularly focused on how Berkshire might deploy its unprecedented cash reserves. The growing war chest, now equivalent to the GDP of many mid-sized countries, presents both opportunities and challenges for capital allocation.
Potential scenarios include:
- Strategic acquisitions in resilient industries
- Expanded share repurchase programs
- Increased investments in Buffett's traditional 'moat' businesses
- Opportunistic market plays during corrections
The coming earnings report may provide clues about management's thinking regarding optimal cash utilization. Historically, Buffett has demonstrated patience in waiting for the right opportunities rather than forcing deployments when valuations appear stretched.
As market participants await Berkshire's financial disclosures, the company's unique position as both a growth vehicle and defensive play continues to attract institutional interest. The upcoming results will test whether the 'Oracle of Omaha's' time-tested strategy remains effective in today's evolving economic landscape.