BRK.B Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Berkshire's historical resilience, diversified holdings, and strategic energy and tech investments continue to drive steady growth, offering a solid return potential.




Bearish Case: Leadership transitions and mean-reverting price action, along with potential economic downturns, pose risk to Berkshire's strong historical performance and price growth.




Potential Outcomes:

1. Continued growth through diversification and strong sectors (60%).

2. Economic pressures reduce returns (25%).

3. Leadership changes cause setbacks (10%).

4. Regulatory impacts disrupt performance (5%).




Trading Oracle: Bearish short volatility strategy: Sell near-term $480 calls, buy $490 calls with a 10-day expiration. Capitalize on mean-reverting price tendencies and moderate SPY volatility for a high reward:risk ratio. This aligns with BRK.B's historic performance.



February 08, 2025


Berkshire Hathaway Forecast

BRK.B        Berkshire Hathaway











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CINF Forecast + Options Trading Strategies   CINF  Cincinnati Financial (0.91)


CBRE Forecast + Options Trading Strategies   CBRE  CBRE (0.91)


AFL Forecast + Options Trading Strategies   AFL  Aflac (0.91)



Uncorrelated Assets

Assets with little price relationship to BRK.B



FMC Forecast + Options Trading Strategies   FMC  FMC (-0.0)


DELL Forecast + Options Trading Strategies   DELL  Dell (0.01)


UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (-0.01)


TMO Forecast + Options Trading Strategies   TMO  Thermo Fisher Scientific (-0.01)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (0.01)



Anticorrelated Assets

Assets that tend to move strongly against BRK.B



EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.82)


IEP Forecast + Options Trading Strategies   IEP  Icahn (-0.82)


WBA Forecast + Options Trading Strategies   WBA  Walgreens Boots Alliance (-0.82)


SHLS Forecast + Options Trading Strategies   SHLS  Shoals (-0.84)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.88)









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