Where does the time go? Berkshire Hathaway's (BRKA 0.35%)(BRKB 0.32%) first earnings report in the post-Warren Buffett era is almost upon us. Buffett, of course, is still on the scene as chairman, but as of Jan. 1, he's no longer CEO.
Regardless, Berkshire -- which hasn't formally set a date for disseminating its fourth-quarter and full-year 2025 results -- will likely unveil them toward the end of February. Here's my take on whether it's wise to load up on the popular stock in the run-up to the event, or sit on the sidelines.
The power of the equity portfolio
Berkshire's business comprises its sizable insurance operations (anchored by the well-known Geico), full or partial stakes in private enterprises, and its vaunted equity portfolio.
Image source: The Motley Fool.
While the insurance end of the company is the foundation of its business and that portfolio of private companies is considerable, it's the equity holdings that get the most attention. The major development recently with this daunting lineup is Berkshire's chunky stock sell-offs, such as Apple and Bank of America, and its accumulation of highly liquid assets (specifically cash and cash equivalents and U.S. Treasuries).
Since the end of the first quarter of 2024, shortly before it started seriously unloading its stakes in those companies, to Q3 2025's quarter-end, the stack of those liquid assets has doubled and then some from $182 billion and change to more than $377 billion. This figure, by the way, exceeds the under $330 billion market cap of the entire equity portfolio at present.
The consensus on Berkshire's strategy is that its cash and other liquid holdings are a kind of flexibility tool that will come in handy when more stock market bargains present themselves. And snapping up shares of undervalued companies is one of the activities the company excels at.
Given that, I'd say we'll see impressive growth in its equity portfolio over the coming quarters and years, and, as ever, it'll lift the value of Berkshire as a whole. I think the company's stock is a smart buy in advance of earnings.
