Key Takeaways
- Michael O’Sullivan, Berkshire’s newly appointed general counsel, acquired 536 Class B shares worth approximately $250,000 this week.
- This marks only the second insider transaction in 2026, following CEO Greg Abel’s $15M Class A share purchase in March.
- Year-to-date performance shows BRK.B declining 6.5% while the S&P 500 has climbed 7.6%, creating a 14-point performance gap.
- Questions persist regarding Abel’s ownership stake, which may constitute under 20% of his estimated net worth.
- Wall Street maintains a neutral stance with a “Hold” rating and average price target of $521.50, suggesting 11% potential upside.
Berkshire Hathaway’s recently appointed general counsel has made his inaugural stock acquisition, investing a quarter-million dollars in Class B shares this week.
Berkshire Hathaway Inc., BRK-B
Michael O’Sullivan acquired 536 shares of BRK.B at approximately $468 per share. His total holdings now stand at 663 shares valued near $300,000, as disclosed in an SEC Form 4 filing.
O’Sullivan began his tenure at Berkshire on January 1, transitioning from Snap Inc. to fill a freshly established internal general counsel position. His background includes more than two decades at Munger, Tolles & Olson — the legal practice co-established by Charlie Munger, Berkshire’s legendary vice chairman.
This transaction represents just the second insider acquisition in 2026. Earlier, CEO Greg Abel purchased 21 Class A shares totaling approximately $15 million on March 4, utilizing after-tax earnings from his $25 million annual compensation package. Abel has committed to making similar purchases each year going forward.
Shares of BRK.B settled Wednesday just under $470. The stock has declined approximately 6.5% since the start of 2026, contrasting sharply with the S&P 500’s gain of roughly 7.6% during the identical timeframe — establishing a performance differential of approximately 14 percentage points.
Looking at the trailing twelve-month period, the underperformance becomes more pronounced, with BRK.B lagging the benchmark index by approximately 40 points.
Berkshire’s first-quarter financial results, released May 2, revealed total revenues reaching $93.7 billion, representing a 4.4% increase year-over-year. Earnings per share registered at $4.68, marking a dramatic surge of nearly 120% compared to the prior year. Despite these strong figures, shares declined 1% in the session following the announcement.
Scrutiny on Abel’s Ownership Position
Abel is widely considered to have achieved billionaire status, with substantial wealth stemming from an $870 million cash distribution received after divesting a 1% interest in Berkshire Hathaway Energy during 2022. His current holdings include 249 Class A shares valued around $175 million, plus Class B shares worth approximately $1 million.
This Berkshire ownership position potentially represents less than one-fifth of his overall net worth. Berkshire’s proxy statement guidelines specify that board members should maintain a “significant investment in Berkshire relative to their resources,” prompting some shareholders to suggest Abel should increase his stake.
At prevailing market prices, BRK.B is trading near 1.4 times Berkshire’s book value as of March 31, and closer to 1.3 times the anticipated June 30 figure — both below historical averages from recent years.
Wall Street’s Current Assessment
Among the six analysts providing coverage on BRK.B, the prevailing consensus stands at “Hold” — comprising two Strong Buy recommendations, three Hold ratings, and one Strong Sell. This represents a downgrade from the “Moderate Buy” designation recorded one month earlier.
On May 6, DBS analyst Edmond Fok reaffirmed his Hold position with a $500 price objective, suggesting approximately 6.4% appreciation potential from current trading levels.
The average analyst price target stands at $521.50, representing roughly 11% upside from present valuation. The most optimistic projection on Wall Street reaches $570, which would deliver approximately 21% gains.
Looking ahead to full-year projections, analysts anticipate BRK.B’s diluted EPS will decline 1.8% to $20.25.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
