Warren Buffett’s Berkshire Hathaway is outperforming the stock market in 2025. The company’s shares have risen 16%, while the S&P 500 has fallen 2%. Investors are drawn to Berkshire’s large cash reserves and reputation for stability.
Buffett’s net worth has increased by $23 billion this year. He is now the sixth richest person in the world,d with a fortune of $165 billion. Investors see Berkshire as a safe investment during uncertain economic times.
“Berkshire is a stable, solid ship in a sea of uncertainty right now,” said Paul Lountzis, president of Lountzis Asset Management. He pointed to the company’s strong balance sheet, which includes lots of cash, Treasurys, and stocks worth over $270 billion. Under Buffett’s leadership, Berkshire’s stock has risen more than 5,500,000% since he took over the company.
This is much better than the S&P 500’s gain of about 39,000% during the same time.
Berkshire’s stock outpaces S&P 500
“In an uncertain world, investors place a higher value on the certainty that Berkshire offers,” said Darren Pollock, portfolio manager at Cheviot Value Management.
Cathy Seifert, a senior vice president at CFRA Research, added, “Investors see Buffett’s sprawling empire as a safe haven.”
Buffett finds good deals on stocks and businesses, especially when markets struggle. Macrae Sykes, a portfolio manager at Gabelli Funds, said Buffett has “shown a unique ability to see through the noise and find value.”
Berkshire’s businesses are also doing well. The company made about $30 billion in cash from its operations last year.
Buffett’s insurance company, Geico, saw profits rise significantly thanks to changes made by its CEO, Todd Combs. Although Buffett’s long-time business partner, Charlie Munger, recently passed away, Buffett has been preparing the company for a future without him.
Many investors are confident in Greg Abel, who Buffett has chosen to be his successor. “Buffett has done a great job preparing the firm for a future without him,” Lountzis said. With Buffett still at the helm and a strong plan for the future, Berkshire Hathaway remains a top choice for investors in 2025.
Image Credits: Photo by Hans Eiskonen on Unsplash
