Berkshire Hathaway (BRK.B) Stock: New Insider Purchase Signals Confidence Despite Market Underperformance

Berkshire Hathaway’s general counsel, Michael O’Sullivan, purchased 536 Class B shares for $250,000 this week, his first transaction since joining the company on January 1 from Snap Inc. The move follows CEO Greg Abel’s $15 million Class A stock buy in March, financed from his $25 million 2026 compensation. O’Sullivan’s acquisition brings his total holdings to 663 shares valued at $300,000, according to SEC filings. This is only the second insider purchase in 2026, underscoring limited confidence despite Berkshire’s solid Q1 results. The company reported $93.7 billion in revenue—a 4.4% year-over-year increase—and earnings per share of $4.68, nearly doubling from the prior year. Yet, BRK.B shares fell 1% after the earnings release and have declined 6.5% year-to-date, trailing the S&P 500 by 14 percentage points. Abel’s Berkshire holdings—249 Class A shares worth $175 million and Class B shares worth $1 million—may account for less than 20% of his net worth, raising questions about his investment commitment. His stake stems partly from an $870 million cash distribution after selling a 1% interest in Berkshire Hathaway Energy in 2022. Analysts rate BRK.B as 'Hold' with an average price target of $521.50, suggesting an 11% upside from current levels. The stock trades at 1.4 times book value as of March 31, below historical averages, while the company’s cash pile hit a record $397 billion in Q1. O’Sullivan’s background includes two decades at Munger, Tolles & Olson, the law firm co-founded by Berkshire’s late Vice Chairman Charlie Munger, adding credibility to his insider purchase.