Despite nearing 95 years old, the "Oracle of Omaha" Warren Buffett continues to write his investment myth in the turbulent US stock market of 2025. $Berkshire Hathaway-A (BRK.A.US)$ and $Berkshire Hathaway-B (BRK.B.US)$ The stock price has been rising continuously recently, breaking historical highs one after another, and has become the focus of the market.

Berkshire Hathaway-A reached an all-time high of $805,091.80 during trading today, while Berkshire Hathaway-B hit a historical peak of $536.86. Both have increased by over 18% this year, outperforming the S&P 500 Index, which recorded a nearly 2% decline in the same period. This strong performance has solidified Berkshire's Market Cap above $1.1 trillion, reinforcing its position as the eighth largest company globally, and once again demonstrating its appeal as the 'ultimate safe haven.'

Berkshire has become a "safe haven" in the US stock market.

According to Statistics, Berkshire's stock price has consistently outperformed the Large Cap US stock market over the past 5, 10, and 20 years. In the past five years, its annual ROI was 22.1%, while the S&P 500 Index was 17.9%. Over the past ten years, Berkshire's annual ROI was 13.7%, which is also 1 percentage point higher than the S&P 500 Index. In the past 20 years, Berkshire's annual ROI was 11.4%, also exceeding the S&P 500 Index's 10.2%. The long-term stable and excellent performance has made Berkshire a "must-buy" symbol for investors.

It is worth mentioning that the continuous rise in Berkshire Hathaway's stock price since the second half of last year occurred without any buybacks by Buffett. It has been proven that the lack of buybacks in recent quarters has not affected Berkshire's stock price. Since the strong Earnings Reports released in late February showing a 70% growth in after-tax operating profit, investors have been continually flocking to the company.

Recently, Berkshire Hathaway increased its Shareholding in the five major trading companies in Japan, including Mitsui & Co. and Mitsubishi Corporation, raising its stake to nearly 10%. This investment has achieved nearly double returns since last year, becoming one of Berkshire's most successful investments in the past decade. Analysts believe that Buffett's move conveys confidence in the Japanese stock market while also bringing substantial returns to Berkshire.

In 2025, the Global economy faces dual pressures of 'stagflation' and recession, with increased volatility in the US stock market following President Trump's new round of global trade war this year. As a stock with strong margins of safety and consistently stable investment returns, Berkshire Hathaway's status as a 'safe haven' has significantly enhanced amid the turbulent US stock market.

Buffett's 'sharp sword remains unclouded.'

Although there is no direct evidence that Buffett is bearish on the stock market, his increasingly cautious investment strategy in recent years is evident. This year, he continues to practically embrace the 'cash is king' strategy. Berkshire's latest Earnings Reports show that its cash reserves have reached a record $334.2 billion, accounting for 29% of total Assets, the highest level in decades. This is interpreted by the market as a potential bet on the USA economy and the forthcoming turbulence in US stocks.

It has been proven that the 'oracle of Omaha' indeed has foresight. In 2025, the S&P 500 Index underperformed most Emerging Markets and European stock indices, and at one point, fell into the Range along with the NASDAQ 100 Index.

With its massive cash reserves, especially its large holdings in short-term US Treasury bonds, and a significantly reduced risk exposure after trimming its Apple position, Buffett has perfectly avoided the downturn in US stocks since late February. Additionally, benefiting from the substantial profits derived from the 'Treasury bond spread + interest' from the recent rise in short-term US Treasuries has generated returns comparable to those from Buffett's stock investment portfolio.

Although Berkshire's stock price is currently more than 1.7 times its book value at the end of 2024 and approximately 25 times the expected earnings for 2025, both the PB and forward PE are at the high end of the Range over the past decade.

However, Berkshire Hathaway's impressive performance in 2025 once again proves Buffett's investment wisdom. Whether it is the prudent management of cash reserves or the successful layout in Japanese trading companies, it highlights the enduring strength of the "Oracle of Omaha." Investors are also filled with confidence in Buffett's successor, Abel, believing that Berkshire's brilliance will continue.

Most Wall Street investment banks give Berkshire a "Buy" or "Shareholding" rating, considering it an ideal hedge symbol in the current market environment.

• Morgan Stanley points out that Berkshire's diversified businesses (Insurance, Energy, Railroads, etc.) provide stable cash flow, making it more resilient during economic downturns.

• Goldman Sachs believes that Berkshire's massive cash reserves (334.2 billion USD) enable it to have "buying power" when undervalued opportunities arise, with significant long-term growth potential.

• UBS Group emphasizes that Berkshire's stock price performance (over 15% increase this year) far exceeds the Large Cap, proving its "safe harbor" attribute has been widely recognized by the market.

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Editor/lambor