Berkshire stock hits post-Buffett high as Bending Spoons stake gains

Berkshire Hathaway shares closed Friday at their highest level since Warren Buffett announced in May 2025 that he planned to step down as CEO at the end of that year. Class A shares (BRK.A) ended the session at $798,000, while Class B shares (BRK.B) finished at $532.02. Both figures sit 1.4% below their respective all-time closing highs of $809,350 and $539.80.

The stock rebounded Friday with gains of more than 1%, reversing a loss Thursday that had broken a 10-session winning streak. Over the three months following Buffett's announcement, the shares had lost more than 14% of their value as investors worried about a dissolving "Buffett premium." The recovery has since narrowed the underperformance against the S&P 500; Class B shares are now 6.0 percentage points behind the benchmark for the year, down from a deficit of 17.5 percentage points in June.

A primary driver of the recent rally is Berkshire's investment in Bending Spoons, an Italian company that acquires internet assets and uses AI to reduce costs. A news release revealed that Berkshire is investing a further $330 million by purchasing 10 million newly issued shares at $33 per share in a private placement. This price represented an almost 12% discount to Bending Spoons' Tuesday closing price of $37.86. The disclosure also marked the first time it was confirmed that Berkshire invested $600 million at Bending Spoons' IPO in July.

Bending Spoons shares surged 41% to close at $53.46 on Wednesday following the announcement. Despite a tech sell-off on Friday, the stock ended at $47.07, which is 42.6% higher than Berkshire's $33 purchase price for the new tranche. Assuming Berkshire paid the $29 IPO price for its initial stake, its total holding stands at approximately 30.7 million shares, worth more than $1.4 billion at Friday's close.

Greg Abel, Berkshire's current CEO, has overseen significant capital deployment, including $4.5 billion in share buybacks during Q2. The company holds roughly $360 billion in cash, which analysts note generates higher returns as short-term interest rates rise. Keefe, Bruyette & Woods analyst Meyer Shields suggested these higher rates are helping to lift Berkshire's shares. Additionally, Berkshire's insurance operations have benefited from a quiet hurricane season, and its $19 billion stake in Chevron has gained almost 36% since July as oil prices rose.

Berkshire's third-largest disclosed stake is now Coca-Cola, valued at $37.6 billion. The holding gained $2.4 billion in a single week, overtaking Alphabet to claim that portfolio position. Coca-Cola shares closed Friday at an all-time high, up 34% year-to-date.

Morningstar analyst Greggory Warren stated that the Bending Spoons investment, along with the growing Alphabet position, indicates the firm is moving out of its comfort zone to deploy capital, a shift he views positively for long-term investors. Barron's reporter Andrew Bary noted that while holders often seek heavier equity investment given the cash pile, Bending Spoons was a surprise due to its high valuation.

The exact number of shares Berkshire purchased in the IPO remains unconfirmed by Bending Spoons, though calculations based on disclosed share counts suggest a 4.5% stake. Further details on the initial purchase may emerge when Berkshire discloses its portfolio snapshot as of September 30 next month.