BRK.B Investment Analysis: Contrasting Reddit Sentiment with Performance Reality

Reddit investors are divided on BRK.B’s investment appeal, with the discussion centering on several key themes:

Many Reddit users believe BRK.B has underperformed the market, with one user noting they’ve been “waiting since May and missing tech bull runs” while others cite Buffett as being “too cautious” [citation:0].

The $380B cash position is viewed as both a strength and weakness. Supporters argue it gives Berkshire “buying power” and serves as a “bubble hedge,” while critics question the opportunity cost and why the company isn’t buying back shares despite the cash pile [citation:0].

Personal experiences highlight the trade-off - one user reported a “modest 4% gain in BRK.B over months while tech-heavy portfolio rose ~35%” [citation:0]. This frames the core question: whether investors trust BRK’s timing more than their own.

Some investors plan to buy after Buffett’s death, expecting a temporary 10% drop, while others believe consensus expectations might cause a pop instead [citation:0].

Contrary to Reddit claims, BRK.B actually outperformed the S&P 500 in 2024, delivering 10.8% returns compared to SPY’s 10.2% [citation:1]. The underperformance narrative appears based on earlier 2024 data through October when BRK.B was indeed lagging (+5.1% vs +12.3% for S&P 500) [citation:2].

The $380+ billion cash figure represents Q3 2025 levels, not 2024 as discussed on Reddit. Berkshire ended Q3 2024 with $325.2 billion in cash, growing to $334.2 billion by year-end 2024 [citation:3][citation:4].

Buffett’s extreme caution is evidenced by:

• Selling more stocks than bought for 12 consecutive quarters
• No share repurchases for nine consecutive months
• Cash representing approximately 31.1% of market capitalization, the highest on record [citation:5]

Despite the cautious investment stance, Berkshire’s operating earnings surged 34% in Q3 2025, driven primarily by insurance underwriting profits [citation:6].

The Reddit discussion and research findings reveal a fascinating disconnect between perception and reality. While Reddit investors focus on BRK.B as a defensive play for market crashes, the data shows Berkshire has actually delivered competitive returns while building unprecedented financial flexibility.

• The underperformance narrative is outdated - BRK.B finished 2024 ahead of the S&P 500
• The cash hoard is even larger than Reddit discussions suggest ($381.7B vs $380B)
• The opportunity cost concerns are valid, but must be weighed against Berkshire’s unique deal access and defensive characteristics

BRK.B represents a “sleep well at night” position with significant embedded optionality. The massive cash position provides downside protection and acquisition firepower that retail investors cannot replicate. However, the current strategy clearly prioritizes capital preservation over growth, creating a fundamental mismatch for investors seeking high-beta returns.

• Market correction could allow Berkshire to deploy cash at attractive valuations
• Strong insurance operations provide consistent cash flow generation
• Succession planning could unlock shareholder value if post-Buffett management becomes more aggressive with capital allocation

• Continued underperformance in bull markets due to extreme caution
• Opportunity cost of holding 31% of market cap in cash during extended market rallies
• Potential market disruption if Buffett’s death triggers the expected volatility
• Concentration risk in top holdings (Apple, American Express, Bank of America, Coca-Cola, Chevron)

The lack of share repurchases despite massive cash reserves suggests management may not view current prices as significantly undervalued, raising questions about immediate upside potential [citation:0].