An analysis published January 17, 2026, suggests Berkshire Hathaway faces significant earnings headwinds in the coming year.
The report cites two primary factors. First, an expected decline in short-term interest rates will reduce income from Berkshire’s large T-bill holdings. Second, the normalization of insurance underwriting profits follows exceptionally high levels seen in recent years.
Management has not increased share repurchases. This suggests they do not view the stock as significantly undervalued at its current price.
New leadership under Greg Abel is in place, but the analysis points to constraints on future growth. These constraints include a large cash position and limited reinvestment opportunities. Despite relative underperformance in 2025, the author suggests the stock is not yet a buy due to anticipated pressures on 2026 earnings.