Forget the Rest of the Market: Why Berkshire Hathaway Is My #1 Stock Pick

Here are the five reasons why Berkshire Hathaway is my favorite stock for the rest of 2026 and beyond.

Gigantic Pile of Cash

Berkshire Hathaway is still sitting on the largest cash pile in its history: $365.5 billion at the end of Q3 2026, equal to roughly 53% of its investable assets. Abel drove the cash drawdown from $397 billion largely by deploying capital, including a $4.53 billion stock buyback program. It’s still enough cash to buy 465 S&P 500 companies entirely. That massive reserve acts as a powerful safety net in a recession or market downturn, while giving CEO Abel tremendous flexibility to pursue attractive acquisitions or make bold capital investments in businesses Berkshire already owns. When the right deal finally appears, and it always does, this kind of financial firepower is truly exceptional.

Strong Earnings

The company reported second-quarter results in August that beat consensus. Berkshire’s operating earnings rose 16.3% to $12.9 billion year-over-year. Net income soared to $25.6 billion. This isn’t accounting noise; it reflects genuine operational strength across Berkshire’s massive business portfolio. Total revenue reached a stunning $101.8 billion for the quarter. Net earnings totaled $25.7 billion. Third-quarter results are due on November 6.

Portfolio Built to Withstand Disruption

Over the past 60 years, Berkshire has assembled a portfolio of operating businesses and investments that are remarkably resilient to disruption from AI and emerging technologies. Railroads, insurance, energy, and consumer staples form the core. These are classic businesses protected by wide, durable competitive moats that are unlikely to be upended overnight.

Buybacks That Have Started

Berkshire ended its 21-month buyback moratorium because its shares finally became attractive enough to repurchase. The price-to-book ratio stayed at a strong 1.44, well below the 60% to 80% premium range that had kept buybacks on hold for nearly two years. Consistent with Berkshire’s long-standing policy, the company repurchases shares only when management believes the stock is trading below its intrinsic value. The resumption of buybacks therefore signals that they view the current price as undervalued. If they think it is, investors will, too.

The Right Man to Lead the Way

Abel personally purchased $15 million of Berkshire shares. That amount is roughly equal to his entire after-tax annual salary. In addition, he has committed to repeating the buy each year. Given his decades-long tenure at the company, Abel is unlikely to make abrupt changes to Berkshire’s direction. However, his more active management approach could still unlock meaningful growth in the years ahead. Abel’s personal investment and commitment to cultural continuity send a powerful signal. A signal that will likely continue to resonate with investors for decades to come.

Berkshire Hathaway’s Wholly Owned Private Companies

When you own shares, you own much more than the 26 companies in the stock portfolio.

Insurance

Transportation & Logistics

• BNSF Railway (one of the largest freight railroads in North America)

• FlightSafety International (pilot training)

• NetJets (fractional aircraft ownership)

Energy & Utilities

• Berkshire Hathaway Energy (parent of MidAmerican Energy, PacifiCorp, NV Energy, Northern Powergrid)

Manufacturing & Industrial

• Marmon Holdings (100+ industrial businesses)

• Precision Castparts (aerospace/industrial components)

• IMC International Metalworking Companies

• Acme Brick Company

• OxyChem, acquired in January 2026 for $9.7 billion — the most recent major addition

Retail & Consumer

• Dairy Queen

• See’s Candies

• Ben Bridge Jeweler

• Borsheims Fine Jewelry

• Nebraska Furniture Mart

Building & Home

• Benjamin Moore & Co. (paints)

• Clayton Homes (manufactured housing)

• Shaw Industries (flooring)

• Johns Manville (insulation/building products)

• Taylor Morrison (acquisition recently completed)

Finance & Services

• Berkshire Hathaway HomeServices (real estate brokerage)

• CORT Business Services (furniture rental)

• Berkadia (mortgage financing, 50% JV)

Berkshire has a staggering 800 subsidiaries worldwide, but these are the flagship names that drive the bulk of operating earnings.

The Berkshire Hathaway shares are trading roughly 5% off their all-time high, sitting on a record cash pile, with buybacks just resuming and a new CEO who’s eating his own cooking. For long-term investors, that’s a rare combination. That said, always do your own due diligence before investing. With an overbought stock market and the AI/data center trade still ruling investor groupthink, this may be the best opportunity to own a legendary company.

Got $1,000? Before You Buy BRK-B, Read This

If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And BRK-B wasn’t one of them.

They combed the entire market. It’s not 10 ideas, not 10 stocks everyone is talking about, it’s what their research points to as the 10 best stocks to buy right now, and it’s free. Read more here and see which stocks made the list –>>

Contact editorial@247wallst.com for any questions or corrections.