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 $15 million Class A share purchase in early March.
- Shares of BRK.B have declined 6.5% year-to-date, underperforming the S&P 500 by approximately 14 percentage points.
- Market observers are calling for increased share purchases from Abel, whose Berkshire holdings may account for under 20% of his total wealth.
- Wall Street analysts rate the stock as a “Hold,” with an average price target of $521.50—suggesting roughly 11% potential upside.
Berkshire Hathaway’s recently appointed general counsel has made his inaugural equity purchase, acquiring $250,000 in Class B shares this Wednesday.
Berkshire Hathaway Inc., BRK-B
Michael O’Sullivan acquired 536 shares of BRK.B at approximately $468 per share. Following this transaction, his total holdings stand at 663 shares valued at roughly $300,000, based on an SEC Form 4 disclosure.
O’Sullivan assumed his position at Berkshire effective January 1, transitioning from Snap Inc. to fill this newly established in-house legal counsel position. His background includes more than two decades at Munger, Tolles & Olson—the prestigious law firm co-established by Berkshire’s late vice chairman Charlie Munger.
This transaction represents just the second insider acquisition in 2026. Chief Executive Officer Greg Abel previously purchased 21 Class A shares totaling approximately $15 million on March 4, financing the transaction with post-tax earnings from his $25 million 2026 compensation package. Abel has committed to making similar annual purchases going forward.
BRK.B concluded Wednesday’s session just under $470. Year-to-date, shares have retreated approximately 6.5%, contrasting sharply with the S&P 500’s gain of roughly 7.6% during the identical timeframe—creating a performance differential of approximately 14 percentage points.
Looking at a twelve-month horizon, the underperformance becomes more pronounced, with BRK.B lagging the benchmark index by roughly 40 percentage points.
Berkshire’s first quarter financial results, disclosed on May 2, revealed total revenues of $93.7 billion, representing a 4.4% year-over-year increase. Earnings per share reached $4.68, marking an impressive surge of nearly 120% compared to the prior-year period. Despite these strong results, shares declined 1% in the trading session following the earnings announcement.
CEO Abel Faces Scrutiny Over Holdings
Abel is widely considered to have billionaire status, with a substantial portion of his wealth originating from an $870 million cash distribution received after divesting a 1% interest in Berkshire Hathaway Energy during 2022. His current Berkshire position includes 249 Class A shares valued at approximately $175 million, plus Class B shares worth about $1 million.
These Berkshire holdings potentially constitute less than 20% of his overall net worth. The company’s proxy materials stipulate that directors should maintain a “significant investment in Berkshire relative to their resources,” prompting some shareholders to suggest Abel should increase his stake.
At present trading levels, BRK.B is valued at approximately 1.4 times Berkshire’s March 31 book value, declining to closer to 1.3 times the anticipated June 30 book value—both figures below historical averages from recent years.
Wall Street’s Current Assessment
Among six analysts tracking BRK.B, the prevailing consensus stands at “Hold”—comprising two Strong Buy ratings, three Hold ratings, and one Strong Sell rating. This reflects a downgrade from the “Moderate Buy” consensus observed just one month earlier.
On May 6, DBS analyst Edmond Fok reaffirmed his Hold recommendation with a $500 price objective, suggesting potential upside of approximately 6.4% from present price levels.
The consensus analyst price target stands at $521.50, representing roughly 11% upside from current trading values. The most optimistic Street target reaches $570, which would deliver upside potential of approximately 21%.
For fiscal 2026, Wall Street projects BRK.B’s diluted earnings per share will decline 1.8% to $20.25.
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