Berkshire Hathaway Inc. Class B stock fell from above $100 to $45 during the 2007-2009 stock market crash. However, this 55% sell-off was followed by an even more impressive recovery to nearly $153 a share in December 2014. But 2015 has not been the best year for Berkshire Hathaway so far, as prices plunged to $125.10 on August 24th, the “Black Monday”. So, what to expect from now on? The next chart shows the most likely scenario, suggested by the Elliott Wave Principle.
According to the theory, trends progress in five-wave sequences, called impulses. As visible, the whole rally since 2009 looks like an unfinished impulse, because its wave (5) is still missing. If this is the correct count, Berkshire Hathaway should continue higher. Unless a truncation occurs, wave (5) is supposed to exceed the top of wave (3). $160 sounds like a good target for the bulls to aim at.