Berkshire Hathaway's November 1st Earnings Take on New Significance Amid CEO Transition — Here's How Traders Are Positioning

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Berkshire Hathaway (BRK.B) will report Q3 2025 earnings on November 1st, with traders watching whether Warren Buffett's final earnings report as CEO will showcase the operational strength that's defined the conglomerate for decades—or reveal concerns about the leadership transition ahead.

Since Buffett announced in May that he would step down as CEO at year-end, BRK.B shares have underperformed the broader market significantly. Yet the stock has still gained about 5% year-to-date and maintains a 52-week range of $437.90 to $542.07, reflecting both the company's fundamental strength and investor uncertainty about life after the Oracle of Omaha.

For active traders looking to capitalize on Berkshire's earnings volatility during this historic transition period, Direxion Daily BRKB Bull 2X and Bear 1X Shares (BRKU & BRKD), launched in December 2024, provide tactical tools to trade the conglomerate's moves without traditional margin requirements.

Q3 Earnings Expectations and Volatility

Wall Street expects Berkshire Hathaway to report earnings of $4.70 per share in Q3, a modest 0.43% increase from the $4.68 reported in the same quarter last year. This reflects the steady, diversified nature of Berkshire's operations across insurance, railroads, utilities, and its massive investment portfolio.

The company's recent earnings history shows volatility beneath the surface. Q4 2024 delivered a massive surprise with earnings of $6.73 versus estimates of $4.43—a 51.92% beat that drove shares higher. However, the following two quarters saw slight misses, with Q1 coming in 7.07% below expectations and Q2 missing by 1.34%.

The succession question adds an unusual layer to this earnings event. With Greg Abel set to take the helm in January 2026, investors are scrutinizing not just quarterly results but also signs of how smoothly the transition will unfold. Some analysts view the stock's recent underperformance as creating an attractive entry point, noting that Berkshire's diversified structure and $340 billion cash position provide stability regardless of who sits in the CEO chair.

Recent Stock Action and Market Dynamics

BRK.B has recently recovered from earlier weakness, though it continues trading well below its 52-week high of $542.07. The stock's 5.9% gain over the past year lags the S&P 500's broader rally, as investors weigh Buffett's irreplaceable market insight against the company's proven operational framework.

Market volatility around Berkshire has intensified since the retirement announcement, with traders closely parsing every comment from Buffett and Abel. The company's massive insurance operations, BNSF railroad, and utility holdings provide steady cash generation, while its equity portfolio—including major stakes in Apple, American Express, Coca-Cola, and Chevron—ties performance to broader market trends.

Analyst sentiment remains constructive, with price targets ranging from $479 to $597 and a mean target of $537.75. The wide range reflects differing views on how quickly the market will regain confidence in Berkshire's leadership structure post-Buffett.

Key Factors for Q3 Results

Several elements will drive the stock's reaction when BRK.B reports on November 1st:

• Insurance Underwriting Results: GEICO's performance and National Indemnity's profitability amid changing auto insurance dynamics and catastrophe losses.
• Investment Portfolio Performance: Unrealized gains or losses from Berkshire's massive equity holdings, particularly its Apple position.
• Operating Business Performance: Results from BNSF railroad, Berkshire Hathaway Energy, and the dozens of wholly owned manufacturing and retail businesses.
• Cash Deployment Commentary: Any signals about how Buffett—or Abel—plans to use the $340 billion cash position in the coming quarters.
• Succession Readiness: Management's tone about the transition timeline and Abel's preparedness to lead the conglomerate.
• Capital Allocation Updates: Share buyback activity and any acquisition discussions that signal strategic direction.

Trading BRK.B Earnings With Direxion ETFs

Berkshire Hathaway typically experiences meaningful volatility around its earnings reports, and the current leadership transition amplifies that dynamic. Direxion Daily BRKB Bull 2X and Bear 1X Shares let traders amplify or hedge BRK.B price action during this unique moment in the company's history.

Bullish Trade: BRKU

The Direxion Daily BRKB Bull 2X Shares (BRKU) allows traders to double their exposure to potential BRK.B gains. BRKU seeks 200%, before fees and expense) of BRK.B's daily performance through financial instruments.

• Targets 200% of BRK.B's daily performance
  • When Berkshire rises 1%, BRKU aims for a 2% gain (before fees)
  • When Berkshire falls 1%, BRKU typically drops 2% (before fees)
• Perfect for traders expecting strong operating results or positive commentary on the transition
• Captures Berkshire's fundamental strength with additional leverage
• Average daily volume: 170,000 shares

Bearish Trade: BRKD

The Direxion Daily BRKB Bear 1X Shares (BRKD) provides inverse exposure to Berkshire without requiring short-selling. This feature helps traders in retirement accounts where IRA and 401(k) rules prohibit traditional shorting.

• Delivers inverse (-1X) daily performance versus BRK.B
  • When Berkshire drops 1%, BRKD aims for a 1% gain (before fees)
  • When Berkshire rises 1%, BRKD typically falls 1% (before fees)
• Valuable for traders concerned about transition uncertainty or disappointing operating results
• Allows retirement account holders to make bearish trades on Berkshire
• Average daily volume: 100 shares

Both BRKU and BRKD reset their exposure daily and work best as short-term trading tools rather than buy-and-hold investments. These products require active oversight and are designed for traders who understand leverage effects and daily rebalancing dynamics.

With Berkshire Hathaway facing questions about its first CEO transition in over six decades alongside normal quarterly scrutiny of its diversified operations, these leveraged ETFs provide traders with powerful tools to capitalize on whatever direction the stock takes on November 1st.

Short-selling means borrowing shares to sell them, hoping to repurchase at lower prices later.

To learn more about all Direxion's Single Stock Leveraged and Inverse ETFS, Click Here

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in BRK.B.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Direxion Shares Risks – An investment in a Fund involves risk, including the possible loss of principal. Each Fund is non-diversified and includes risks associated with a Fund concentrating its investments in a particular security, industry, sector, or geographic region which can result in increased volatility. A Fund’s investments in derivatives such as futures contracts and swaps may pose risks in addition to, and greater than, those associated with directly investing in securities or other investments, including imperfect correlations with underlying investments or the Fund’s other portfolio holdings, higher price volatility and lack of availability. As a result, the value of an investment in a Fund may change quickly and without warning.

Leverage Risk – The Bull Fund obtains investment exposure in excess of its net assets by utilizing leverage and may lose more money in market conditions that are adverse to its investment objective than a fund that does not utilize leverage. A total loss may occur in a single day. Leverage will also have the effect of magnifying any differences in the Fund’s correlation with BRK.B and may increase the volatility of the Bull Fund.

Daily Correlation Risk – A number of factors may affect the Bull Fund’s ability to achieve a high degree of correlation with BRK.B and therefore achieve its daily leveraged investment objective. The Bull Fund’s exposure to BRK.B is impacted by BRK.B’s movement. Because of this, it is unlikely that the Bull Fund will be perfectly exposed to BRK.B at the end of each day. The possibility of the Bull Fund being materially over- or under-exposed to BRK.B increases on days when BRK.B is volatile near the close of the trading day.

Daily Inverse Correlation Risk – A number of factors may affect the Bear Fund’s ability to achieve a high degree of inverse correlation with BRK.B and therefore achieve its daily inverse investment objective. The Bear Fund’s exposure to BRK.B is impacted by BRK.B’s movement. Because of this, it is unlikely that the Bear Fund will be perfectly exposed to BRK.B at the end of each day. The possibility of the Bear Fund being materially over- or under-exposed to BRK.B increases on days when BRK.B is volatile near the close of the trading day.

Berkshire Hathaway Inc. – BRK.B faces risks associated with the risks associated with companies in the financial services sector and the insurance industry. Additionally, Berkshire Hathaway Inc. faces risks associated with: terrorism impacting its operating businesses; cybersecurity events; geopolitical events that cause loses to its business and the value of securities it owns.

Financials Sector Risk —Performance of companies in the financials sector may be materially impacted by many factors, including but not limited to, government regulations, economic conditions, credit rating downgrades, changes in interest rates and decreased liquidity in credit markets.

Additional risks of each Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Counterparty Risk, Rebalancing Risk, Intra-Day Investment Risk, Industry Concentration Risk, Market Risk, Indirect Investment Risk, and Cash Transaction Risk. Additionally, for the Direxion Daily BRKB Bear 1X Shares, Shorting or Inverse Risk.  Please see the summary and full prospectuses for a more complete description of these and other risks of a Fund.

Distributor: ALPS Distributors, Inc.

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