Warren Buffett’s stock prints longest bearish stretch in 3 years; What’s next?

Berkshire Hathaway’s (NYSE: BRK.A, BRK.B) share price is flashing bearish technical signals that point to potential long-term weakness.

In this case, the stock has spent six straight weeks below its 200-day moving average (MA), the longest stretch in about three years, highlighting sustained selling pressure and difficulty regaining trend strength. 

Currently, BRK is consolidating under the long-term trend line after a sharp pullback from record highs, similar to the late-2022 base that preceded a strong rally.

Therefore, a decisive close above the 200-day would signal a trend resumption, while continued rejection could pave the way for a deeper retracement.

It’s worth noting that at the start of the year, BRK shares were outperforming the S&P 500 despite heightened market volatility. 

However, since Warren Buffett announced in May that he will step down as CEO at the end of 2025, the stock has slipped about 11%, though it remains up nearly 6% year-to-date, last trading at $477.

Berkshire’s updated portfolio

The technical standoff comes during an active second quarter for Berkshire’s portfolio. The headline move was a new $1.6 billion stake in UnitedHealth, accumulated under confidential treatment and disclosed at quarter-end, sending the stock higher. 

Berkshire also initiated smaller positions in Allegion, D.R. Horton, Lamar Advertising, and Nucor, while fully exiting T-Mobile and cutting nearly half of its Charter Communications holding.

Adjustments to core holdings were more measured. In this case, the investment giant trimmed 20 million shares from its roughly 300 million Apple stake and sold 26 million of its 630 million Bank of America shares, extending reductions that began last year. 

It added 3 million shares of Chevron while keeping long-standing positions in Coca-Cola and American Express unchanged. 

Homebuilders also emerged as a theme: alongside the D.R. Horton purchase, Berkshire lifted its Lennar stake to about 7 million shares from just 150,000.

With sentiment reset and the portfolio tilting toward healthcare, energy, and housing, the stock’s next catalyst may well be technical.

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