Berkshire Hathaway Inc. BRK.B has been rebalancing its investment portfolio yet again to have a stable income-generating and geographically diverse portfolio. While the company has increased its stakes in Japanese companies, it has exited positions in payment giants and shifted focus toward airlines.
Berkshire now holds more than 10% stake in all five major trading houses — Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. Several factors continue to support Berkshire’s growing presence in Japan. Corporate governance reforms have improved transparency and capital efficiency, making Japanese firms increasingly attractive to foreign investors. At the same time, Japanese equities remain relatively inexpensive compared with U.S. peers, offering appealing long-term return potential. Berkshire is also planning to invest nearly $1.8 billion in Tokio Marine Holdings.
Per the 13F filing of Berkshire, the conglomerate exited positions in payment giants Mastercard and Visa, as well as in managed care behemoth UnitedHealth Group and insurance broker Aon. It lowered the stakes in Bank of America and Chevron. The filing also stated Berkshire bought 39.8 million shares for $2.6 billion in Delta Air Lines, marking its comeback in the airline industry. Berkshire also increased its position in Alphabet, one of the most innovative companies in the modern technological age and one of the Magnificent Seven stocks.
This revamp takes place under the leadership of new CEO Greg Abel, who took over stewardship of the behemoth from legendary Warren Buffett. These strategic moves continue to underscore Berkshire’s intention to ensure uninterrupted cash flow generation, which in turn can be deployed in share buybacks and opportunistic investments.
What About BRK.B’s Competitors?
Progressive Corporation’s PGR inorganic growth strategy focuses on building scale, technology and distribution while reinforcing its insurance portfolio. Progressive pursues disciplined, selective deals that deliver strategic value and complement its core strengths. Through targeted acquisitions, Progressive enhances efficiency and customer reach, ensuring long-term competitiveness in a dynamic insurance landscape.
Travelers Companies’ TRV inorganic growth strategy emphasizes reinforcing core insurance strengths while expanding into complementary markets. Travelers seeks disciplined acquisitions that enhance underwriting, technology and distribution capabilities. With a focus on sustainable shareholder value, Travelers carefully evaluates opportunities that bolster its competitive edge while maintaining a conservative balance sheet.
BRK.B’s Price Performance
Shares of BRK.B have lost 4.7% year to date, underperforming the industry.
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BRK.B’s Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.38.
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Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B’s second-quarter 2026 earnings per share (EPS) has witnessed no movement over the past 30 days but moved south in the same time frame. The consensus estimates for 2026 and 2027 have moved north in the last 30 days.
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The consensus estimate for BRK.B’s 2026 and 2027 revenues indicates year-over-year increases. While the consensus estimate for BRK.B’s 2026 EPS indicates a decline, the same for 2027 suggests an increase.
BRK.B stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Travelers Companies, Inc. (TRV): Free Stock Analysis Report
Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
The Progressive Corporation (PGR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).