Berkshire Hathaway Hits Record Highs as Greg Abel’s Bending Spoons Bet Pays Off

Key points

• Berkshire Class A shares closed at $798,000, just 1.4% below their all-time high, while Class B shares finished at $532.02.
• Berkshire invested an additional $330 million in Bending Spoons at $33 per share, following an initial $600 million stake at the IPO price.
• Bending Spoons shares jumped 41% on the day the investment was revealed, reaching an intraday high of $58.56.
• Berkshire holds approximately $360 billion in cash, generating higher yields due to elevated short-term interest rates.
• Coca-Cola, a major Berkshire holding, reached an all-time high, partly aided by KFC’s switch from Pepsi to Coke.

Background

Berkshire Hathaway shares had fallen more than 14% from their pre-announcement highs in May 2025 after Warren Buffett revealed his plan to step down as CEO. The stock bottomed in August 2025 before beginning a gradual recovery. Recent market commentary has highlighted the tension between Berkshire’s traditional value investing approach and the broader market’s focus on AI and tech stocks, with some analysts noting that Berkshire’s recent moves signal a shift toward more active capital deployment under CEO Greg Abel.

How outlets are covering it

CNBC emphasizes the strategic shift under Greg Abel, highlighting the Bending Spoons investment as a move out of Berkshire’s traditional comfort zone, while noting that higher interest rates are boosting returns on its cash pile. Zacks Equity Research focuses on valuation metrics, noting Berkshire’s forward P/E ratio of 24.08 is a premium to the industry average, but assigns a 'Buy' rank based on positive earnings estimate revisions. 24/7 Wall St. frames the rally as a momentum signal, noting that the stock broke through a resistance level that had capped prices since August, indicating strong institutional conviction. Some analysts, like Andrew Bary of Barron’s, expressed surprise at the Bending Spoons bet given its high valuation, contrasting it with Berkshire’s typical value-oriented approach.

Why it matters

The rally signals that investors are responding positively to Greg Abel’s leadership and his willingness to deploy capital in non-traditional ways, such as the high-multiple Bending Spoons stake. It also reflects broader market shifts, with investors moving away from high-flying AI and tech stocks toward 'old economy' names like Coca-Cola and energy firms. Berkshire’s ability to generate higher returns on its massive cash pile due to rising interest rates further supports the stock’s performance, demonstrating the resilience of its diversified portfolio.

What to watch

Investors will watch for Berkshire’s September 30 portfolio disclosure to determine the exact size of its Bending Spoons stake. The company is expected to report earnings soon, with consensus estimates predicting EPS of $5.91 for the quarter. The performance of Bending Spoons and other new investments will be key indicators of Greg Abel’s capital allocation strategy. Additionally, the impact of rising oil prices on Berkshire’s Chevron stake and the continued strength of its insurance operations will influence future stock performance.