Forget the AI Friday Rally: Why Big Money Is Still Fleeing to Warren Buffett’s Berkshire Hathaway
While AI stocks wobble, a $1.225 trillion giant that skipped the boom is quietly outrunning the market under its new CEO. Five signals explain why this contrarian holding keeps drawing a crowd, and one cash figure stands out.
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Berkshire Hathaway (NYSE: BRK-B | BRK-B Price Prediction) is still my favorite stock to hold for the long haul. The third-quarter results it reported on November 7, 2026, give me more reason to think so. Greg Abel took over from Warren Buffett as CEO on January 1, 2026. Buffett later stepped down as chairman, and his son Howard was named to replace him, as reported in September 2026. Berkshire’s market value is now about $1.225 trillion.
Berkshire leans toward railroads, insurance, energy, and consumer businesses, so it missed much of the AI rally. That caution is paying off now. BRK.B is up 13.58% year to date and 12.77% over the past month through the November 6 close. Over the same period, CNBC reported the S&P 500 up 7.8% year to date and down 5.5% for the month. Fortune called Berkshire a haven again as investors flee the AI rout.
1. A Huge Cash Pile Ready to Put to Work
Cash and Treasury bills rose 3% to $377.435 billion at the end of the third quarter, up from $365.514 billion in Q2. Excluding rail and utility payables, cash fell 1.9% to $352.3 billion. The decline came as Abel spent money on buybacks and acquisitions. That pile cushions Berkshire in a downturn and funds deals.
2. Businesses Outside Insurance Are Growing
Operating earnings fell 5.8% to $12.705 billion from $13.485 billion a year earlier. Insurance underwriting earnings dropped 43%. Net earnings fell 28% to $22.112 billion. On the bright side, railroad, energy, and manufacturing earnings all grew. I watch operating earnings because net earnings move with stock prices. Management calls those quarterly gains “usually meaningless” and warns they can be “extremely misleading.” Auto insurance is still very competitive. GEICO’s rival Progressive (NYSE: PGR) posted a third-quarter combined ratio of 88.7.
3. A Portfolio Built to Withstand Disruption
Railroads, insurance, energy, and consumer staples have strong competitive advantages that AI is unlikely to overturn quickly. Insurance float, the premium money Berkshire holds before claims are paid, was about $177.5 billion as of June 30, 2026. That money funds Berkshire’s investing. Markel Group (NYSE: MKL) often called a mini-Berkshire, reported float of $18.84 billion in Q3 2025. Markel’s Tom Gayner summed up the model the two companies share:
“By staying true to our values, while providing exceptional businesses and leaders a home in which to grow and thrive, we believe the Markel Group is well-positioned to continue compounding shareholder value across generations.”
Berkshire’s 13F filing as of June 30, 2026, showed $299.3 billion in stocks across 26 companies. The seven largest positions made up 80.8% of that. The next filing is due in mid-November. To speed up the vetting, we ranked the cheapest dividend payers already in that portfolio in a free Buffett stocks report.
4. Buybacks Are Speeding Up
Berkshire bought back $9.6 billion of its own stock in the third quarter, up from $4.5 billion in Q2. That brings 2026 buybacks to about $14.4 billion. Berkshire only buys back shares when management thinks they trade below their true value. The stock trades at 1.12 times book value and 12 times earnings. The faster buybacks suggest management sees value at these prices.
5. Greg Abel Is the Right Leader
Abel bought $15 million of Berkshire shares with his own money. That is about his after-tax salary, and he plans to repeat the purchase each year. Filings show those Class A purchases on March 4, 2026. He bought no more shares in the third quarter, but Abel keeps Berkshire’s culture intact, manages more hands-on, and has his own money at stake. He also closed the purchase of homebuilder Taylor Morrison in July 2026.
Wholly Owned Businesses Beyond the Stock Portfolio
- Insurance: GEICO, General Re, Berkshire Hathaway Reinsurance Group, Alleghany, Kansas Bankers Surety
- Transportation: BNSF Railway, FlightSafety International, NetJets
- Energy: Berkshire Hathaway Energy (MidAmerican Energy, PacifiCorp, NV Energy, Northern Powergrid)
- Manufacturing: Marmon Holdings, Precision Castparts, IMC International Metalworking Companies, Acme Brick, OxyChem
- Retail: Dairy Queen, See’s Candies, Ben Bridge Jeweler, Borsheims, Nebraska Furniture Mart
- Building and home: Benjamin Moore, Clayton Homes, Shaw Industries, Johns Manville, Taylor Morrison
- Services: Berkshire Hathaway HomeServices, CORT Business Services, Berkadia (joint venture)
Why I’m Staying Patient
Berkshire is beating the market with a near-record cash pile, faster buybacks and a CEO who owns the stock himself. As investors move away from the AI trade, I’ll watch the mid-November 13F and Abel’s next deal.
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
