• UBS has expressed confidence in Berkshire Hathaway's stock performance, projecting a nearly 17% gain in 2025, regardless of economic conditions. Analyst Brian Meredith highlighted that Berkshire's diverse portfolio, which includes cyclical businesses like BNSF Railway and manufacturing, positions it well to benefit from economic growth. Conversely, its robust insurance operations and substantial cash reserves provide a defensive hedge against potential economic downturns, allowing for strategic acquisitions and share buybacks if necessary.

• Berkshire Hathaway's stock has shown strong performance, outperforming the S&P 500 with a 25.5% gain in 2024. The company has shifted its focus from stock buybacks to leveraging solid operating earnings, particularly from its insurance segment, including Geico. UBS anticipates that Geico will pivot to growth in 2025 after a period of policy count shrinkage, supported by adequate rates and increased advertising spend. This strategic positioning underscores Berkshire's adaptability in fluctuating market conditions.