Creating Your Own Berkshire Hathaway Using Stocks and ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Source: Barron's
Investment Outlook: Berkshire Hathaway is expected to remain a solid investment even after Warren Buffett steps down as CEO.
Stock Price Concerns: The stock price may decline due to the diminishing prestige associated with the company following Buffett's departure.
Performance Strategy: Investors might consider mirroring the performance of Berkshire's holdings to avoid uncertainties related to the leadership transition.
Transition Impact: The transition period could introduce volatility, affecting investor confidence and stock valuation.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 775.000
Low
395.00
Averages
620.54
High
730.00
Current: 775.000
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Power Generation Growth: Caterpillar's Power Generation segment saw a remarkable 44% growth in Q4, driven by strong demand for large gensets and turbines used in data center applications, highlighting the company's robust performance in the power and energy sector.
- Record High Stock Price: Caterpillar's shares closed at a record high of $775 on Wednesday, up 4% from the 52-week intraday high of $756.10, lifting its market value to approximately $362 billion, reflecting market optimism regarding its turbine business.
- Analyst Ratings Optimistic: According to Koyfin, analysts have an average rating of 'Buy' for Caterpillar, with 15 analysts giving 'Buy' or higher ratings, indicating strong confidence in the company's future growth prospects.
- Retail Sentiment Shift: Retail sentiment on Caterpillar shifted from 'bearish' to 'bullish' according to Stocktwits data, with message volumes reaching 'extremely high' levels, suggesting investor optimism about the company's future performance.
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- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
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- Strong Earnings Performance: Caterpillar reported fourth-quarter 2025 sales of $19.133 billion, an 18% increase from $16.215 billion year-over-year, with adjusted EPS of $5.16 exceeding the $4.66 estimate, reflecting robust market performance and operational efficiency.
- Technical Analysis Indicates Strength: Caterpillar's stock is trading well above all key moving averages, indicating strong upward momentum, although the RSI at 73.61 suggests an overbought condition that may lead to a pullback, warranting caution among traders.
- Positive Long-Term Trend: The stock has delivered an impressive 12-month return of 113.44% and is currently at a new 52-week high, underscoring the company's strong growth potential in infrastructure and power generation sectors, which are expected to outperform in the coming years.
See More
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- Power Generation Growth: Caterpillar's Power Generation segment saw a remarkable 44% growth in Q4, driven by strong demand for large gensets and turbines used in data center applications, highlighting the company's robust performance in the power and energy sector.
- Record High Stock Price: Caterpillar's shares closed at a record high of $775 on Wednesday, up 4% from the 52-week intraday high of $756.10, lifting its market value to approximately $362 billion, reflecting market optimism regarding its turbine business.
- Analyst Ratings Optimistic: According to Koyfin, analysts have an average rating of 'Buy' for Caterpillar, with 15 analysts giving 'Buy' or higher ratings, indicating strong confidence in the company's future growth prospects.
- Retail Sentiment Shift: Retail sentiment on Caterpillar shifted from 'bearish' to 'bullish' according to Stocktwits data, with message volumes reaching 'extremely high' levels, suggesting investor optimism about the company's future performance.
See More
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- Overlap with Dow Jones: The GRNY ETF shares eight stocks with the Dow Jones Industrial Average, including well-known tech stocks like Apple, Amazon, Microsoft, and Nvidia, with respective weights of 2.55%, 2.16%, 2.11%, and 2.51% in GRNY, reflecting a similarity in investment strategies.
- Differing Investment Styles: The GRNY ETF employs a rules-based stock selection process focusing on stocks that meet two or more key themes, with current themes including PMI recovery, energy stocks, and cybersecurity, aimed at attracting millennial investors.
- Market Performance Comparison: In contrast to the GRNY ETF, the SPDR Dow Jones Industrial Average ETF has increased by 3.46% year-to-date and 12.08% over the past 52 weeks, showcasing the relative strength of Dow components, which may impact investor confidence in GRNY.
See More
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- Limitations of AI: AI cannot perform physical tasks such as cooking, delivering packages, or farming.
- Human Dependency: Despite advancements in AI, human involvement is still essential for various everyday activities.
See More
This Steady Dividend ETF Has Gained 10% in 2026, Driven by Caterpillar.
- Investor Patience: Investors focusing on reliable dividend payers have needed to be patient recently.
- Market Performance in 2026: In 2026, this patience is rewarded as companies like Caterpillar, Exxon Mobil, and Clorox achieve returns exceeding 25%.
See More
Heavy Equipment Manufacturers' Stocks Surge
- Strong Market Performance: In 2026, farm and construction machinery stocks are soaring double digits in a sideways market, with Paccar, Caterpillar, and Deere significantly outperforming the S&P 500, indicating robust industry recovery and heightened investor confidence.
- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
- Caterpillar's Stellar Results: Caterpillar's Q4 results released on January 29 showed an 18% year-over-year revenue increase to $19.1 billion, surpassing market expectations, particularly driven by a 23% sales increase in its gas turbine division due to booming AI data center construction, with projections to double power generation equipment sales by 2030.
- Optimistic Industry Outlook: The heavy construction equipment market is forecasted to grow at an annual rate of 6.2% through 2034, reaching $372 billion, while the agriculture equipment market is expected to recover from a downturn, projected to grow at 8.6% annually through 2035, reaching $689 billion, indicating long-term investment potential.
See More
Analyst Raises Caterpillar Price Target to $825 Amid Strong Earnings and Customer Spending
- Customer Capital Expenditure Boost: Analyst notes that The Williams Companies' announcement of substantial capital expenditure increases for 2026 is expected to significantly enhance Caterpillar's business prospects, particularly in its turbine and engine sectors, thereby bolstering the company's backlog and growth trajectory.
- Strong Earnings Performance: Caterpillar reported fourth-quarter 2025 sales of $19.133 billion, an 18% increase from $16.215 billion year-over-year, with adjusted EPS of $5.16 exceeding the $4.66 estimate, reflecting robust market performance and operational efficiency.
- Technical Analysis Indicates Strength: Caterpillar's stock is trading well above all key moving averages, indicating strong upward momentum, although the RSI at 73.61 suggests an overbought condition that may lead to a pullback, warranting caution among traders.
- Positive Long-Term Trend: The stock has delivered an impressive 12-month return of 113.44% and is currently at a new 52-week high, underscoring the company's strong growth potential in infrastructure and power generation sectors, which are expected to outperform in the coming years.
See More
