Berkshire's "Underperformance" Is About to Become a BIG Trade

Berkshire Hathaway, Warren Buffett's key holding company, has been trailing way behind the S&P 500.

I'm going to get exposure to it using the 2x ETF Direxion Daily BRKB Bull 2X ETF BRKU but buying the stock BRK.B is also a legit option.

Berkshire has been underperforming because they have too much cash, but I believe it might be deploying the cash during this time of volatility, which will give the stock better leverage in the future.

Here's why I'm investing now:

• Record cash pile ($370B+) is a massive “war chest” and new CEO Greg Abel can deploy it into acquisitions, buybacks, or opportunities when markets correct.
• Berkshire just restarted stock buybacks after ~2 years — explicit signal that management views shares as undervalued.
• Trades at a great valuation with a discount to the expensive broader market; offers downside protection in any recession or valuation reset.
• Core businesses (insurance, BNSF railroad, energy) continue to grow steadily and generate strong operating earnings.
• Classic value play: proven to outperform over full cycles, especially when cash is deployed opportunistically.
• Long-term compounding machine — even if it lags in hot growth years, history shows it shines in the long run.

I love underpriced stuff, and this stock is not only underpriced but also a conservative play. They are probably already deploying that cash and I want to front run that opportunity.