OMAHA, Neb. — Berkshire Hathaway's stock surged this week, bucking a broader market downturn driven by worries over artificial intelligence investments, as investors turned to the conglomerate's massive cash reserves for stability. Shares of the company's Class A stock climbed 5.6 percent, while Class B shares rose 5.7 percent, according to market data reported by CNBC. This performance outpaced the S&P 500, which dipped 0.1 percent for the week despite a Friday rebound that pushed the Dow Jones Industrial Average above 50,000 for the first time.
The tech sector's slump, sparked by concerns that AI spending is outstripping revenue growth, has highlighted the appeal of Berkshire's conservative approach. With more than $350 billion in cash on hand, the company led by Warren Buffett stands as a safe haven amid the volatility. As of September 30, 2025, Berkshire's cash position totaled $381.7 billion, up 10.9 percent from June 30, or $354.3 billion when excluding railroad cash and subtracting Treasury bills payable, marking a 4.3 percent increase from the prior quarter. Berkshire's market capitalization now exceeds $1.09 trillion, reflecting its steady value in uncertain times.
Year-to-date, Berkshire shares are running even with the S&P 500, a recovery from an 8 percentage point deficit just a week earlier. Analysts note that the company's diversified portfolio, heavy on traditional industries rather than high-flying tech, has shielded it from the sector's woes. "Those declines are making Berkshire's more than $350 billion in cash look more like a blessing than a curse," CNBC reported in its weekly Buffett Watch newsletter.
One bright spot for Berkshire came from its significant stake in DaVita Inc., the dialysis provider whose shares soared nearly 29 percent this week. The jump followed DaVita's release of fourth-quarter earnings and a full-year profit forecast late Monday that exceeded analysts' expectations. Berkshire holds a 44 percent stake, comprising more than 30 million shares valued at $4.2 billion as of the latest figures.
However, the gains were bittersweet. Berkshire was required to sell almost 1.7 million DaVita shares last Thursday at $120.56 each, totaling just under $200 million, before the stock's surge. This sale was mandated by a 2024 agreement with DaVita, which stipulates that Berkshire maintain its ownership at or below 45 percent of outstanding shares. The company's share count had declined in the previous quarter due to DaVita's stock buyback program, triggering the divestiture to comply with the cap.
In other Berkshire news, the company's jewelry subsidiary, Borsheims Fine Jewelry, announced plans for a sweeping renovation of its flagship store in Omaha. Described as a "major architectural transformation," the project aims to usher in a "new Golden Era" for the retailer. "The goal is to reimagine the customer's experience with an elevated luxury environment that reinforces Borsheims as a destination," said Karen Goracke, the company's president and CEO, in a news release.
Borsheims, a popular stop for Berkshire shareholders during the annual meeting weekend—where discounts are offered—will undergo construction starting after this year's gathering in May. The store will remain open throughout the work to minimize disruption. The design is being handled by Omaha-based HDR, with construction by fellow local firm Kiewit. Both companies are headquartered in the city, underscoring Berkshire's deep ties to its Nebraska roots.
Warren Buffett, Berkshire's longtime chairman and CEO, recently shared his timeless advice on navigating the stock market, particularly in an era of flashy initial public offerings and quick gains. During a question-and-answer session, an audience member asked how young people should view stocks amid media hype about unprofitable companies going public.
"You don't really have to worry about, you know, what's going on in IPOs, or people making money," Buffett responded. He likened such pursuits to lotteries, advising against envy or distraction. In a longer reflection, Buffett emphasized a long-term mindset:
People win lotteries every day, but there's no reason to have that affect you at all. You shouldn't be jealous about it. I mean, you know, if they want to do mathematically unsound things, and one of them occasionally gets lucky, and they put the one person on television, and the million that contributed to the winnings with the big slice taken out for the state, you know, don't get on there — it's nothing to worry about. Just — all you have to do is figure out what makes sense. And you don't — and you look at buying — when you — when you buy a stock, you get yourself in the mental frame of mind that you're buying a business, and if you don't look at a quote on it for five years, that's fine... Let the rest of the world go its own way. You don't — you don't want to get into a stupid game just because it's available... A lot of problems are, as Charlie would say, are caused by envy. You don't want to get envious of somebody that won the lottery or bought an IPO that went up. You have to figure out what makes sense and follow your own course.
Buffett's words, delivered to an audience including children watching remotely, reinforce his value-investing philosophy, which has guided Berkshire through decades of market cycles. The 95-year-old investor, who has led the company since 1965, continues to eschew short-term speculation in favor of durable businesses.
Berkshire's portfolio remains dominated by longstanding holdings, with top U.S. and Japanese stocks disclosed in its latest 13F filing on November 14, 2025, based on September 30 positions. While full details are tracked on platforms like CNBC's Berkshire Hathaway Portfolio Tracker, the company's investments in blue-chip names like Apple and Coca-Cola provide ballast against tech volatility. Adjustments to holdings are reported quarterly, offering transparency into Buffett's strategy.
The week's events come as Berkshire prepares for its annual shareholder meeting in May, often dubbed the "Woodstock of Capitalism." The Omaha gathering draws tens of thousands, blending business discussions with community events, including visits to subsidiaries like Borsheims. This year's meeting will precede the jewelry store's renovations, potentially heightening interest in the transformation.
Looking ahead, Berkshire's cash hoard positions it well for opportunities in a jittery market. With tech stocks under pressure, the conglomerate could deploy its reserves for acquisitions or buybacks, though Buffett has historically been patient. The company's outperformance this week underscores its resilience, even as broader indices grapple with AI-driven uncertainties.
Market watchers will monitor upcoming earnings from Berkshire's diverse operations, including insurance, railroads, and energy, for signs of how the economic landscape is evolving. For now, Buffett's steady hand appears to be paying dividends—literally and figuratively—for investors seeking refuge from the storm.