The stock of Berkshire Hathaway (BRK.A/BRK.B), the holding company of famed investor Warren Buffett, has received a rare downgrade.
Analysts at investment firm Edward Jones lowered their rating on Berkshire Hathaway’s stock to “hold” from “buy,” citing the fact that the company has been running ahead of its peers in the financial services sector.
Berkshire Hathaway’s stock is up 15% so far this year compared to a flat reading for the financial services sector.
Most U.S. bank stocks are in the red for the year after the failure this past spring of several regional lenders.
Edward Jones said that continued outperformance by Berkshire Hathaway in the current environment is unlikely.
Berkshire Hathaway also holds nearly $150 billion U.S. in cash, one of the largest cash piles among American companies, and the stock benefits from its “safe haven” status as investors trust Buffett and his investing acumen.
Edward Jones had previously upgraded Berkshire’s stock to a “buy” rating a year ago. Since then, the stock’s Class B shares have gained 33% to trade at $357.06 U.S. per share.