Warren Buffett's Berkshire Just Flashed A Death Cross — And That Might Be Good News

Core Insights - The recent appearance of a Death Cross on Berkshire Hathaway's Class B shares may indicate a potential buying opportunity rather than a cause for concern [2][5][7] Stock Performance - Berkshire's Class B shares have only gained +6% over the past year, significantly underperforming the S&P 500, which surged +19% during the same period [3] - Following Warren Buffett's announcement of his planned retirement at the end of 2025, shares dropped nearly 15%, reaching an August low of $459 [3] - Since that low, the stock has rebounded by 7.2%, suggesting some investors believe the worst may be over [4] Market Sentiment - The Death Cross pattern, which occurs when a stock's 50-day moving average falls below its 200-day average, often reflects past weaknesses rather than predicting future declines [5] - Buffett's investment philosophy encourages investors to be cautious when others are overly optimistic and to be opportunistic when others are fearful, which may apply to the current situation with Berkshire [5] Financial Position - Berkshire Hathaway maintains a substantial cash reserve and has resilient operating businesses, with a significant portion of its portfolio invested in Apple Inc., positioning it well for potential recovery [5]