Here's Why Berkshire Hathaway Stock Is a Buy Before Aug. 2

Core Viewpoint - Berkshire Hathaway is positioned as a solid investment opportunity ahead of its earnings report, with a significant cash stockpile and strong performance from key investments despite recent stock price declines due to CEO Warren Buffett's retirement announcement [4][12][13]. Financial Performance - Berkshire's operating earnings and cash stockpile are critical metrics to watch, with the cash reaching an all-time high of $347.7 billion at the end of Q1 [2][11]. - The S&P 500 increased by 10.4% during the second quarter, and key investments like American Express and Bank of America saw increases of 20% and 15%, respectively [6]. - The market is currently valuing Berkshire's businesses at approximately 11.5 times operating earnings, down from 14 times, indicating potential undervaluation [11]. Investment Activity - While specific stock transactions will not be disclosed until mid-August, it is anticipated that Berkshire's cash stockpile has grown, and there may have been stock buybacks during the quarter [3][7]. - The stock portfolio is valued at approximately $292 billion, and when cash is excluded, the operating businesses are valued at about $380 billion [10]. Market Position - Berkshire Hathaway has a market capitalization of about $1.02 trillion, which is lower than previous months, despite an increase in stock portfolio value and cash reserves [9]. - The company is insulated from tariff impacts due to its collection of mostly tariff-resistant businesses [8].