Berkshire Hathaway (BRK.B) shares have staged a rebound just as Warren Buffett’s legendary 60-year career approaches its final chapter. On Tuesday (21st), the stock flashed a "golden cross"—a bullish technical signal that occurs when the 50-day moving average rises above the 200-day moving average. For Buffett, often called the "God of Stocks," the timing feels almost poetic: a Wall Street send-off wrapped in chart patterns.
A Technical Milestone
The golden cross is Berkshire’s first in nearly three years. On Tuesday, the 50-day moving average closed at $493.19, just above the 200-day average of $493.18. Shares themselves slipped 0.6% to $491.29, still comfortably above the seven-month low of $459.11 in August but below the all-time high of $539.80 set in May.
While traders know moving average crossovers aren’t perfect timing tools—they’re often anticipated by the market—history suggests they matter. Over the past 25 years, Berkshire has logged 13 golden crosses, with an average gain of 33.5% before the next "death cross." Those rallies have lasted anywhere from a few days to more than two years.
From Death Cross to Rally
The last "death cross" for Berkshire came in December 2022. Since then, the stock has surged nearly 78%, hitting record highs earlier this year. A similar pattern played out after the September 2020 death cross, which preceded a 65% rally into March 2022.
For long-term investors, these signals reinforce what Buffett himself has preached for decades: patience pays.
Buffett's Final Moves
The golden cross arrives just 10 weeks before Buffett’s retirement, marking the end of a six-decade run that transformed Berkshire into a $1.06 trillion giant. Buffett still owns about 37% of the company’s common stock, making him deeply aligned with shareholders even as he prepares to hand the reins to Greg Abel.
Earlier this month, Berkshire announced a $9.7 billion acquisition of OxyChem, the chemical arm of Occidental Petroleum. It’s the company’s largest deal in nearly three years and a reminder that even in his final months, Buffett isn’t afraid to swing big.
At the same time, Berkshire has continued to hoard cash, signaling Buffett’s view that valuations across the market remain stretched. Yet with Berkshire up 8.4% year-to-date, it has lagged the S&P 500’s 14.5% gain, leaving some investors wondering if the golden cross could mark the start of a catch-up rally.
The Bottom Line
For Buffett, the golden cross is less about technicals and more about symbolism. It underscores the durability of Berkshire’s model—steady acquisitions, disciplined cash management, and a long-term mindset. Whether the stock follows its historical pattern of post-cross gains remains to be seen, but one thing is clear: Wall Street is preparing to bid farewell to its most famous value investor with a bullish nod.