Should You Buy, Sell, or Hold Berkshire Hathaway Stock Before May 3?

Over the past few months, blue-chip stocks have delivered mixed results due to ongoing geopolitical and trade tensions. Even some of the most stable names have come under pressure. But Berkshire Hathaway (BRK.B) has stood out in 2025, gaining over 18% in the year-to-date. That strong performance has sparked debate: Is Berkshire still a “must-own” for conservative investors, or is it time to take profits?All eyes are now on Saturday, May 3, when Warren Buffett and Vice Chairman Greg Abel will host the company’s annual meeting in Omaha. Buffett, who is turning 95 this year, is expected to answer key questions about Berkshire’s record $334 billion cash pile, any potential for dividends, and future leadership plans. Abel will likely share more about what Berkshire might look like after Buffett, helping address one of the market’s biggest uncertainties.About BRK.B StockWarren Buffett, often called the “Oracle of Omaha,” is one of the most successful investors in history. Through Berkshire Hathaway, he owns and manages a wide range of businesses, including insurance, railroad, and energy companies, and holds a concentrated portfolio of major public stocks.Some of the largest positions in Berkshire’s portfolio include:Apple (AAPL)American Express (AXP)Bank of America (BAC)Coca-Cola (KO)Chevron (CVX) Smaller stakes include Occidental Petroleum (OXY), Moody’s (MCO), and Sirius XM (SIRI).Today, Berkshire Hathaway has a market cap of around $1.1 trillion, with its stock delivering a robust 34% gain over the past year. Over the longer term, shareholders have seen returns of nearly 200% over the past five years. That steady climb shows Berkshire Hathaway’s appeal as a long-term compounder, even amid market turbulence.In terms of valuation, BRK.B currently trades at 26x forward earnings and 3.1x forward sales. That’s higher than the sector median of 10x earnings and 2.6x sales. This premium shows that investors trust Berkshire’s stable earnings, strong financial position, and Buffett’s careful approach to capital. However, it also means expectations are high, and there’s less room for error if things slow down.Buffett’s Big Cash BuildIn 2024, Berkshire sold over $134 billion worth of stocks and built its cash reserves to an all-time high of $334 billion. Buffett still believes in owning stocks long-term, but he hasn’t found enough good deals lately. For nine straight quarters, he’s sold more than he’s bought.He also trimmed big holdings like Apple and Bank of America and stopped Berkshire’s own share buybacks by late 2024. His explanation? “Often, nothing looks compelling.”That cautious cash strategy proved effective. As the S&P 500 Index ($SPX) has declined by roughly 4% this year, Berkshire Hathaway climbed more than 18%. Holding onto cash turned out to be a smart move. Now Buffett has $334 billion ready to spend when good deals appear.What to Expect on May 3At the annual meeting, investors are watching for:How Buffett plans to use the $334 billion in cash.Any signs of future dividend payments.Succession updates from Greg Abel.Performance updates on key holdings like Apple.Berkshire will also release its Q1 2025 results, which are expected to show strong operating income. Analysts estimate EPS as high as $5.07 for the quarter. Investors will be looking closely at how the cash is managed and what that means for the stock moving forward.Is BRK.B a Buy, Sell, or Hold?According to Wall Street, BRK.B has a “Moderate Buy” consensus from six analysts. Two say “Strong Buy,” while four recommend “Hold.” The stock is currently trading near its average target price of $533. However, the highest analyst target is $606, which suggests 13% upside from current levels.Berkshire’s strong 2025 performance, disciplined leadership, and large cash reserves make it a reliable long-term investment. But given its recent rally and higher valuation, there may not be a strong reason to buy more right now. BRK.B is best viewed as a “Hold,” a stable core holding with long-term value, even if near-term upside is limited.www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.