Berkshire Hathaway Stock Rose 10 Days in a Row in October for the First Time Since 2018. Here's What History Says Comes Next.

Most of the attention on Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) owes to its impressive investment portfolio. But Berkshire Hathaway stock is also worth watching on its own, and its shares did something this month that it hasn't accomplished in eight years.

The conglomerate, now led by Greg Abel after the retirement of its longtime leader, Warren Buffett, saw its Class B shares close higher for 10 consecutive trading sessions from Oct. 1 through Oct. 14. Berkshire's stock rose from about $498 to $526.

Berkshire snapped the streak on Oct. 15, but the stock is on another run higher, recently topping $547 and beating the record close of $539.89 set in May 2025.

Obviously, it's a great time to be a Berkshire Hathaway investor. But let's also look at the bigger picture about what happens when Berkshire stock goes on a 10-day winning run. This has happened only six other times since 1998 -- and in four of those six instances, the shares were trading higher 12 months later.

Does that mean investors should buy Berkshire stock today? History offers some encouragement, but there's a much stronger argument for owning Berkshire than its recent winning streak.

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What does a Berkshire winning streak mean?

Berkshire's earlier streaks of at least 10 consecutive higher closes occurred in 1998, 2003, 2014, twice in 2017, and in January 2018.

The longest came in August 2017, when the shares advanced for 15 consecutive sessions. Berkshire also recorded another extended winning streak in March of that year.

Let's be clear -- although it's a bullish signal that Berkshire posted 12-month gains on four separate occasions after those 10-day runs, that doesn't guarantee that the stock will be higher one year from now. After all, six previous occurrences are a small sample size.

The historical results suggest that an extended winning streak isn't automatically a warning that investors have missed their opportunity. But a 67% success rate doesn't establish that Berkshire has a two-thirds chance of rising during the next year.

Fortunately, investors have something more useful than historical trading patterns to help them make that decision.

Berkshire has plenty going for it

One of the biggest questions surrounding Berkshire entering 2026 was how the company would perform after Buffett's retirement as chief executive officer.

So far, Abel has demonstrated that he's willing to put Berkshire's enormous financial resources to work.

Berkshire doubled down on its position in Alphabet, the parent company of Google, while also adding to positions in companies such as Delta Air Lines. The company has also resumed substantial share repurchases, buying back about $4.4 billion of its own stock.

The buybacks are a signal to investors -- Berkshire has always been cautious about buying its own stock and has a stated philosophy of buying only when the stock is trading below its intrinsic value.

Of course, a buyback isn't proof that Berkshire shares are undervalued today, particularly after their recent advance. But it's an encouraging indication of management's willingness to deploy capital when opportunities arise.

And Berkshire still has considerable financial flexibility. Its cash reserves provide ample flexibility for Abel to make acquisitions, invest in more companies, or buy back more of the company's own shares.

Meanwhile, Berkshire's collection of operating businesses, including insurance, railroads, utilities, and manufacturing operations, gives investors exposure to several important parts of the economy without having to purchase individual stocks.

That's a compelling combination for long-term investors.

Is Berkshire Hathaway stock a buy now?

There's another reason I like Berkshire that has little to do with its October winning streak.

Historically, Berkshire has demonstrated an ability to hold up relatively well during difficult markets. In fact, Berkshire outperformed the S&P 500 in 11 of the 13 calendar years when the index posted a negative return.

That doesn't mean Berkshire is immune to market declines. But its diversified businesses, financial resources, and disciplined approach to investing can make it an attractive long-term holding.

And that's where the historical winning-streak data becomes less important.

Berkshire's 10 consecutive gains this month -- or in any year -- don't guarantee positive returns 12 months from now, particularly with the shares trading at a record high. Investors buying today also need to recognize that a strong business isn't automatically an attractive investment at any price.

But I remain bullish on Berkshire's long-term prospects under Abel. The company's financial strength, diverse operations, and renewed willingness to deploy capital provide several avenues to reward shareholders over time.

The October winning streak may have caught Wall Street's attention. For long-term investors, though, Berkshire's underlying business is a much better reason to own the stock.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Berkshire Hathaway. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.