What is a good entry price for brk b
6/5/2025 08:44pm
Aime
The deep research logic is organized as follows:
Okay, let's tackle the user's question about a good entry price for BRK.B. The user is interested in Berkshire Hathaway's portfolio, shale oil, and natural gas, which suggests they're looking for stability and long-term growth. They mentioned a focus on blue-chip stocks and moderate risk tolerance, so the answer should balance technical analysis with fundamental factors.
First, I need to check the latest data from the references. The closing price on 2025-06-05 is $488.74 . The resistance level is $491, and the support level is $485.6 . The average price target from analysts is $598.5 , which is significantly higher than the current price. The consensus rating is a Strong Buy .
Looking at moving averages, the 5-day MA is 496.87, 10-day is 500.98, 20-day is 505.81 . The 200-day MA is 480.65 . The stock is currently below the 5-day, 10-day, and 20-day MAs but above the 200-day MA. This indicates short-term weakness but long-term bullish momentum.
The user is interested in entry points, so I should consider support levels and moving averages. The current price is near the support level of $485.6. If the price dips to this level, it could be a good entry point. The 200-day MA at $480.65 is another key level. However, the stock is currently above this, so a pullback to this level might offer a buying opportunity.
Analysts have a Strong Buy rating, and the average price target is $598.5, which is about 22% above the current price. This suggests upside potential. The recent UBS downgrade to $591 from $606 might have caused some short-term volatility, but the overall sentiment remains positive.
The user's interest in long-term growth aligns with holding BRK.B for the long term. The company's strong cash position ($347 billion) and Buffett's recent comments about potential deals add to the appeal. The upcoming leadership transition to Greg Abel could also be a factor, but the user might be concerned about the impact of Buffett's retirement.
Considering the technicals, the support level at $485.6 and the 200-day MA at $480.65 are key levels. If the price drops to these levels, it could present a good entry point. However, the current price is already near the support, so the user might want to wait for a confirmation of a pullback before entering.
The user's focus on stability and long-term growth means they should consider the fundamentals alongside the technicals. The company's diversified portfolio, including stakes in companies like Coca-Cola and American Express, provides a stable income stream. The recent sale of DaVita shares might indicate portfolio adjustments, but the overall strategy remains consistent with Buffett's long-term approach.
In conclusion, the entry price should be around the support level of $485.6 or the 200-day MA of $480.65. The user should also consider the upside potential based on the analyst targets and the company's fundamentals. Monitoring the stock's performance around these levels and any news related to Buffett's retirement or new investments could provide further clarity.
Conclusion
A good entry price for BRK.B (Berkshire Hathaway B) is $485.60 (current support level) to $491.00 (immediate resistance level), with a target price range of $480.65–$598.50 based on technical and fundamental analysis. Here’s the breakdown:
📊 Key Data & Analysis
1. Current Market Context
| Metric | Value (2025-06-05) | Implication |
|---|---|---|
| Closing Price | $488.74 | Near-term consolidation between $485.60 (support) and $491.00 (resistance) |
| Resistance Level | $491.00 | Short-term upside target if bullish momentum resumes |
| Support Level | $485.60 | Key price floor; potential buying opportunity if price dips |
| 200-Day Moving Average | $480.65 | Long-term bullish trend anchor; price above this level signals strength |
| Average Price Target | $598.50 | Analyst consensus (Strong Buy rating) suggests 22% upside potential |
2. Technical Setup
| Time Frame | Moving Average (2025-06-05) | Price vs. MA | Implication |
|---|---|---|---|
| 5-Day | $496.87 | Below | Short-term bearish pressure; price may test support levels |
| 20-Day | $505.81 | Below | Medium-term resistance; price needs to break this for sustained rally |
| 200-Day | $480.65 | Above | Long-term bullish trend intact; price pullback to this level is a buy signal |
3. Fundamental Catalysts
- Analyst Consensus: Strong Buy rating with an average price target of $598.50 .
- Cash Position: $347 billion in cash and short-term investments , enabling opportunistic acquisitions.
- Leadership Transition: Greg Abel set to take over as CEO , maintaining Buffett’s long-term value investing strategy.
🎯 Entry Strategy
- Immediate Entry: Buy at $485.60 (current support level) if price dips further.
- Target Entry: Aim for $480.65 (200-day MA) if price consolidates below $485.60.
- Stop Loss: Set at $478.00 (50-week EMA) to limit downside risk .
- Profit Target: $598.50 (analyst average price target) or $600.00 (rounded upside).
📉 Risks to Monitor
- Market Volatility: Recent UBS downgrade highlights sensitivity to macroeconomic conditions.
- Competition: Launch of BRK.B-focused ETFs (e.g., BRKC) 12 may increase short-term price swings.
- Regulatory Risks: Climate-related lawsuits 3 and Buffett’s retirement could impact investor sentiment.
📊 Final Takeaway
BRK.B offers a high-risk, high-reward opportunity with a $485.60–$491.00 entry range. Long-term holders should prioritize the $480.65–$598.50 price corridor, aligning with Berkshire’s strong fundamentals and value-oriented strategy.
BRK.B Trend
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