Should You Buy Berkshire Hathaway While It's Below $480?

As a long-time investor and admirer of Warren Buffett's investment prowess, I've been keeping a close eye on Berkshire Hathaway's (BRK.A, BRK.B) recent price decline. With the stock currently trading below $480, many investors are wondering if now is the right time to buy. In this article, I'll explore the key factors driving Berkshire Hathaway's recent price decline, compare its current valuation to historical averages and industry peers, and discuss the primary risks and opportunities associated with investing in the company at its current price.



Key Factors Driving Berkshire Hathaway's Recent Price Decline

1. Market-wide Downturn: The broader market has experienced a significant downturn, with the S&P 500 index falling by over 20% from its peak in early 2022. As a large-cap stock, Berkshire Hathaway is not immune to these market-wide fluctuations. As of 2025, the S&P 500 index has not yet recovered to its pre-downturn levels, which has contributed to Berkshire Hathaway's price decline.
2. Interest Rate Increases: The Federal Reserve has been raising interest rates to combat inflation, which has led to a decrease in the value of growth stocks, including Berkshire Hathaway. Higher interest rates make bonds more attractive, leading investors to sell growth stocks and buy bonds, which drives down the prices of growth stocks like Berkshire Hathaway.
3. Slowing Economic Growth: The global economy has been slowing down, which has negatively impacted Berkshire Hathaway's diverse business portfolio. As a conglomerate with investments in various industries, Berkshire Hathaway is sensitive to economic conditions. A slowing economy can lead to decreased earnings for some of its subsidiaries, which can negatively impact the company's overall stock price.
4. Geopolitical Uncertainty: Geopolitical tensions and uncertainty have also contributed to the market's volatility and Berkshire Hathaway's price decline. Events such as trade wars, political instability, and global conflicts can create uncertainty, which can lead investors to sell stocks and wait for more stable conditions.
5. Warren Buffett's Age and Succession Concerns: As Warren Buffett ages, there have been concerns about his eventual retirement and the succession plan for Berkshire Hathaway. These concerns have led some investors to question the company's long-term prospects and sell their shares, contributing to the price decline.