Have you ever wondered what happens when a titan of industry steps down? The news of Warren Buffett announcing his retirement as CEO of Berkshire Hathaway at the end of 2025 sent ripples through the financial world. For decades, Buffett has been the heartbeat of this conglomerate, turning a struggling textile business into a trillion-dollar powerhouse. Now, with Vice Chairman Greg Abel set to take the helm, investors are left asking: what’s next for Berkshire’s stock?
This isn’t just a leadership change; it’s a seismic shift for one of the most watched companies in the world. Berkshire Hathaway’s stock (BRK.B) hit a record high just before the announcement, and the market is buzzing with speculation. In this article, I’ll dive into the technical patterns shaping Berkshire’s stock, pinpoint critical price levels to watch, and share insights on how this transition might influence its trajectory. Buckle up—it’s going to be a fascinating ride.
Why Buffett’s Exit Matters for Investors
Warren Buffett isn’t just a CEO; he’s a legend. His ability to spot undervalued companies and nurture long-term growth has made Berkshire Hathaway a darling of investors. According to financial analysts, Buffett’s leadership accounted for a significant portion of the company’s brand premium. Now, with Greg Abel stepping in, the market is eager to see if he can fill those oversized shoes.
Abel has been groomed for this role for years, overseeing key operations and earning Buffett’s trust. But transitions at this level are rarely smooth. Investors are watching closely, and the stock’s recent breakout suggests optimism—but is it sustainable? Let’s break down the technical signals and key levels to monitor.
A Bullish Breakout: The Ascending Triangle
Just before Buffett’s announcement, Berkshire’s stock chart painted a compelling picture. The shares surged above the upper trendline of an ascending triangle, a pattern traders love for its bullish implications. This breakout signals potential for further gains, but where might the stock go next?
The relative strength index (RSI) is also flashing positive signals. Sitting above 50 but not yet in overbought territory, it suggests there’s room for the stock to climb. In my experience, these patterns often precede strong moves, but they’re not foolproof. Let’s dig into the numbers to see where Berkshire might be headed.
Patterns like the ascending triangle don’t guarantee success, but they give traders a roadmap for what’s possible.
– Market technician
Upside Targets: Where Could Berkshire Go?
Projecting price targets after a breakout is part art, part science. By applying two trusted technical tools—the measured move and bars pattern—we can estimate where Berkshire’s stock might land. Here’s what the charts suggest:
Measured Move Projection
The measured move technique involves calculating the height of the ascending triangle at its widest point and adding that to the breakout level. For Berkshire, the triangle’s height was roughly $50, and the breakout occurred around $535. Adding these gives us a target of $585, an 8% jump from the recent close.
This level isn’t just a random number. It aligns with historical resistance zones where the stock has paused before. If momentum holds, $585 could be a realistic destination in the coming weeks.
Bars Pattern Insight
Another way to forecast price is the bars pattern, which looks at prior uptrends to predict future moves. By analyzing Berkshire’s rally from February to March—following a similar triangle breakout—we can project a target of $606. That’s a hefty 12% above the recent close.
Why choose this period? It mirrors the current setup, offering a glimpse of how the stock might behave. If history rhymes, $606 could be in play, especially if positive sentiment around Abel’s leadership grows.
- Measured Move Target: $585 (8% upside)
- Bars Pattern Target: $606 (12% upside)
- Key Catalyst: Market confidence in Greg Abel’s leadership
Support Levels: Where to Find Stability
No stock moves in a straight line. If Berkshire pulls back, where might it find support? Two levels stand out as potential floors for investors looking to buy the dip.
Initial Support at $519
If the stock dips below the triangle’s upper trendline, it could slide to $519. This level aligns with a significant peak from early March and a consolidation zone within the triangle. It’s a natural spot for buyers to step in, especially if short-term profit-taking occurs.
Deeper Support at $490
A more substantial pullback could push Berkshire toward $490. This area is bolstered by the early-March swing low and sits near the 50-day moving average, a widely watched indicator. For long-term investors, this could be an attractive entry point.
Level Type | Price | Significance |
Upside Target | $585 | Measured move projection |
Upside Target | $606 | Bars pattern projection |
Support | $519 | Early-March peak |
Support | $490 | 50-day moving average |
What’s Driving Berkshire’s Momentum?
Berkshire’s stock has outperformed the broader market, gaining 19% year-to-date compared to the S&P 500’s 3% loss. What’s fueling this strength? For one, the company’s diverse portfolio—from insurance to railroads—provides stability in turbulent markets. But there’s more to the story.
Perhaps the most intriguing factor is the market’s confidence in Greg Abel. While Buffett’s exit is a loss, Abel’s track record suggests he’s ready to steer the ship. Investors seem to agree, as the stock’s breakout reflects optimism about the transition.
A strong successor can keep a company’s legacy alive, even after a legend departs.
– Financial strategist
Risks to Watch
While the charts look promising, it’s not all smooth sailing. Leadership transitions can spark volatility, especially for a company as closely tied to its CEO as Berkshire. If Abel stumbles early on, sentiment could sour, pushing the stock toward those support levels.
Broader market conditions also matter. A downturn in the S&P 500 or unexpected economic headwinds could drag Berkshire down, regardless of its fundamentals. In my view, keeping an eye on macroeconomic trends is just as crucial as watching the charts.
- Leadership Risk: Abel’s ability to maintain Buffett’s vision
- Market Risk: Potential for broader market sell-offs
- Sentiment Risk: Investor reactions to early decisions
How to Approach Berkshire Now
So, what’s the play for investors? If you’re bullish, the breakout suggests holding or adding to positions, with an eye on those upside targets. For cautious types, waiting for a dip to $519 or $490 could offer a better entry point. Either way, Berkshire remains a cornerstone for many portfolios.
Personally, I find the combination of technical strength and Abel’s potential compelling. But as with any investment, it’s about balancing opportunity with risk. What do you think—will Berkshire keep climbing, or is a pullback looming?
The Bigger Picture
Buffett’s retirement isn’t just about one company; it’s a reminder that even the greatest legacies evolve. Berkshire Hathaway has weathered decades of change, and this transition is another chapter. The stock’s technical setup, combined with Abel’s leadership, suggests the story is far from over.
Whether you’re a trader eyeing the charts or a long-term investor betting on Berkshire’s fundamentals, the next few months will be pivotal. Keep those price levels—$585, $606, $519, and $490—in your sights, and stay nimble as the market reacts to this historic shift.
The beauty of investing is that every change brings opportunity. Berkshire Hathaway’s next chapter is just beginning, and for those paying attention, the rewards could be significant. What’s your take on this transition? Are you buying, holding, or waiting for a dip?