Berkshire Hathaway Stock Rose 10 Days in a Row in October for the First Time Since 2018. Here's What History Says Comes Next.
2026-10-25 09:50
•Patrick Sanders •The Motley Fool
•• ••••••• Axe Cap view
Berkshire’s Winning Streak Signals Confidence but Watch the Rand
Berkshire Hathaway’s 10-day share rally highlights strong capital moves under new leadership, a narrative worth noting through the USD/ZAR lens.
Berkshire Hathaway’s recent 10-day consecutive rise is rare and telling. Under Greg Abel, the firm’s aggressive buybacks and bolstered stakes in Alphabet and Delta Air Lines point to a confident management team viewing current valuations as attractive. This optimism is especially significant given Berkshire’s history of outperforming during market downturns. However, South African investors should focus on the USD/ZAR dynamics rather than the US stock directly. A stronger dollar relative to the rand could mute the appeal of foreign equities for local investors. If the rand weakens further, capital outflows could intensify, pressuring local markets despite global upside. Conversely, if the rand strengthens, offshore investments could deliver better returns when converted back home. The main risk is a sudden shift in US inflation or Fed policy reversing the USD rally, which would also ripple through the rand and by extension, South African portfolios. this is just our opinion and not financial advice
Watch the USD/ZAR closely and consider trimming rand-hedged offshore exposure if the dollar strengthens further. Hold local banking stocks like Standard Bank or Sanlam selectively, as they benefit from stable or weaker rand conditions.
- USD/ZAR
- Standard Bank
- US inflation surprises
- Fed policy tightening
- rand volatility
6/10
Berkshire Hathaway's Class B shares achieved 10 consecutive daily gains in October 2026 for the first time since 2018, rising from $498 to $526. Historical analysis shows that in 4 of 6 previous similar streaks, the stock traded higher 12 months later. Under new CEO Greg Abel, the company has demonstrated strong capital deployment through increased share buybacks ($4.4 billion), expanded positions in Alphabet and Delta Air Lines, and maintained substantial cash reserves, suggesting management confidence in the stock's value.
Our take is based on reporting first published by The Motley Fool.