Buyback or Not, Berkshire is Breaking Out

Back in early-July I wrote this blog post turning more constructive on the overall market in part because Berkshire Hathaway’s stock looked ripe to make a move out of a long consolidation. Buffett and Munger’s company has indeed become much more economically and risk-sensitive over the years. Thus, it is worth paying attention to how Berkshire is acting.

After announcing a buyback of sorts today, Berkshire looks to be continuing on higher. I was looking for a break and hold above $131,500 last summer on the “A” shares, and that is exactly what we have seen. For the first time in a long time, as you can see below, all weekly chart moving averages are lined up properly and rising.

I view a move through $137,000 as triggering a run to all-time highs from 2007.

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