I've been talking about Berkshire Hathaway (BRK.B) for a while and I think the opportunity is better than ever. Berkshire is presenting a rare long-term buying opportunity.
As shown in the chart (May 2025 – May 2026):
The ratio between
BRK.B and 
SPX (BRK.B / SPX) has collapsed to the 0.65, while in the past it used to be close to 1. Still, Berkshire maintains a very high long-term correlation with the S&P 500.
This setup is in my opinion a strong mean reversion ahead.
Key fundamentals I like:
What you’re buying:
Historically...
Historically, over the very long term (since 2000), Berkshire Hathaway has significantly outperformed the S&P 500.
For example, during the dot-com bubble, Berkshire was far more stable, and then exploded after the dot-com era.
Post-Buffett (Greg Abel now leading), the culture and discipline remains strong. The stock has shifted from “expensive” to genuinely cheap. Really. No brainier here.
Positioning Idea:
My Kelly Criterion curve indicator points to 3× optimal leverage. So my "conservative" play is 2× via Direxion Daily BRK.B Bull 2X ETF
BRKU
Let me know your thoughts on this one. I think there's a very decent expected value in this play. The Berkshire meeting is happening this week, and it might reveal a new positive cycle for the company.
Quick note: I'm just sharing my journey - not financial advice! 😊
- Henrique Centieiro
As shown in the chart (May 2025 – May 2026):
- BRK.B: -8.86%, while
- SPX: +42.49% a gap of over 51 percentage points — one of the widest divergences in modern history.
The ratio between
BRK.B and SPX (BRK.B / SPX) has collapsed to the 0.65, while in the past it used to be close to 1. Still, Berkshire maintains a very high long-term correlation with the S&P 500.This setup is in my opinion a strong mean reversion ahead.
Key fundamentals I like:
- P/E ratio: 15
- P/B ratio: 1.4 (near multi-year lows)
- Record cash pile: $373 billion for opportunistic acquisitions or buybacks
What you’re buying:
- Diversified powerhouse: insurance (float = cheap capital), railroad (BNSF), manufacturing, and utilities.
- Premier equity portfolio: Apple (largest holding), American Express, Bank of America, Coca-Cola, Chevron, Occidental, and more.
- AI second-derivative play (YES, AI!!) via Berkshire Hathaway Energy (BHE): Data centers drove ~half of U.S. electricity demand growth in 2025, with massive load growth continuing into 2026–2027. BHE is ideally positioned in key regions and actively expanding for hyperscaler demand
Historically...
Historically, over the very long term (since 2000), Berkshire Hathaway has significantly outperformed the S&P 500.
For example, during the dot-com bubble, Berkshire was far more stable, and then exploded after the dot-com era.
Post-Buffett (Greg Abel now leading), the culture and discipline remains strong. The stock has shifted from “expensive” to genuinely cheap. Really. No brainier here.
Positioning Idea:
My Kelly Criterion curve indicator points to 3× optimal leverage. So my "conservative" play is 2× via Direxion Daily BRK.B Bull 2X ETF
BRKU Let me know your thoughts on this one. I think there's a very decent expected value in this play. The Berkshire meeting is happening this week, and it might reveal a new positive cycle for the company.
Quick note: I'm just sharing my journey - not financial advice! 😊
- Henrique Centieiro
Hedge Fund Manager at Maverick Capital | Wealth Educator | 20+ yrs investing | Stocks, ETFs & Crypto alerts | Join Henrique Wealth Academy for trade alerts & indicators → skool.com/be-limitless/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hedge Fund Manager at Maverick Capital | Wealth Educator | 20+ yrs investing | Stocks, ETFs & Crypto alerts | Join Henrique Wealth Academy for trade alerts & indicators → skool.com/be-limitless/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.