UBS Cuts Berkshire Target as Buffett Shifts Strategy
Warren Buffett keeps Berkshire Hathaway heavily defensive heading into mid-2025. He’s allocating even more cash to short-term Treasuries, which now total $305.5 billion, up from $286.4 billion last quarter.
That’s a 6.6% increase, putting Berkshire ahead of entire countries like Taiwan in U.S. debt holdings.
Buffett’s cautious positioning doesn’t stop there. Berkshire has also reduced its banking exposure. It fully exited Citigroup, dumping the final $1 billion stake. Meanwhile, it sold nearly $2.2 billion in Bank of America shares and offloaded $46 million in Capital One stock.
UBS Lowers Price Target, Keeps Buy Rating
UBS analyst Brian Meredith scaled back his 12-month price forecast for Berkshire Hathaway Class B shares. The new target sits at $591, down from the previous $606. Despite the cut, he maintains a Buy rating on the stock.
Meredith expects a slowdown in investment income and no buybacks through 2026. That’s driving the adjusted valuation. Still, he sees long-term strength in the company’s balance sheet and business model.
“With over $347 billion in liquidity, Berkshire is built to endure,” Meredith stated in a recent client note.
Why Berkshire Still Looks Attractive to Investors
A shaky macro backdrop makes Berkshire’s setup appealing. The conglomerate owns a broad mix of recession-resistant businesses and holds massive cash reserves. UBS notes the company’s exposure to tariffs is minimal.
Buffett’s ultra-conservative approach signals caution—but also strength. By holding record cash and cutting risk assets, Berkshire has more room to deploy when opportunities arise.
For investors seeking stability, Berkshire offers rare flexibility and downside protection—especially with markets flashing mixed signals.
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