BRK.B Analysis: Underperformance vs. Cash Strategy Investment Opportunity

Reddit discussions reveal mixed sentiment toward BRK.B’s investment case:

• Users report BRK.B underperforming while missing tech bull runs, with some waiting since May without significant gains
• Forward PE ratio noted as worse than current PE, with weak analyst ratings cited by some users
• Opportunity cost versus tech/QQQ investments highlighted as a key consideration

• Some users frame BRK.B as a “bubble hedge” and safety haven during market turbulence
• Criticism of cash hoarding strategy, with users questioning why not hold cash personally instead of via BRK
• Lack of share buybacks despite massive cash position suggests board doesn’t see current prices as compelling
• Users note BRK.B tends to rise when markets are red and fall when green, acting as a defensive position

• Some investors planning to buy after Buffett’s death, expecting potential ~10% drop
• Others expect gradual decline over months following leadership transition
• BRK’s superior buying power and timing ability versus retail investors cited as long-term advantage

• BRK.B delivered ~10.8% YTD return in 2024 vs SPY’s ~24.93% - a 14 percentage point underperformance gap
• Both investments generated positive returns, but SPY significantly outperformed

• Q3 2024 cash position: $325.2 billion (not $380B - that figure represents Q3 2025 data)
• Cash represents 233.4% growth since 2020, accelerating accumulation in recent years
• Strategy involves portfolio reductions (Apple, Bank of America) and waiting for attractive acquisition opportunities
• No significant share repurchases in recent quarters, continuing cash accumulation strategy

• Both Reddit and research confirm BRK.B’s underperformance relative to S&P 500
• Massive cash accumulation is verified, though timing differs ($325B Q3 2024 vs $380B Q3 2025)
• Defensive characteristics during market turbulence are acknowledged by both sources

• Reddit’s $380B cash figure appears premature - research shows this is Q3 2025 data, not current
• Reddit criticism of cash strategy may overlook Buffett’s disciplined value investing approach
• Reddit concerns about lack of buybacks align with research showing no significant repurchases

• Massive cash position provides “dry powder” for opportunistic acquisitions during market corrections
• Proven track record of capital allocation and long-term value creation
• Defensive characteristics during market volatility and potential bubble scenarios
• Superior buying power and deal-making ability versus individual investors

• Continued underperformance relative to growth indices creates opportunity cost
• Succession uncertainty around Buffett’s leadership transition
• Cash hoarding strategy may continue to lag in bull markets
• Forward PE concerns and weak analyst ratings may limit near-term upside

BRK.B appears positioned as a conservative, long-term investment rather than a growth play. The current underperformance and massive cash position suggest it may be more attractive as a defensive holding or for investors expecting market corrections. However, investors should be prepared for continued relative underperformance in strong bull markets and consider the opportunity cost versus growth-oriented investments.