Warren Buffett’s long-term confidence in Berkshire Hathaway’s 2016 acquisition of Precision Castparts is starting to pay off after a difficult decade. Initially, Buffett admitted he had overpaid for the company, which specializes in complex metal components essential to aerospace and energy sectors. The Covid-19 pandemic worsened Precision Castparts' outlook as its aerospace customers faced a downturn, leading Berkshire to take an $11 billion write-down six years ago. Despite these challenges, Buffett maintained trust in CEO Mark Donegan and the business's eventual profitability.

Recently, the industry dynamics have shifted in Precision Castparts' favor. A shortage of critical castings used in jet engine turbine blades and natural gas turbines, now in strong demand for powering AI data centers, has improved the company’s market position. Adding context to this momentum, GE Aerospace just announced an $11.75 billion acquisition of Consolidated Precision Products, another key player in the casting market. Analysts estimate that using the price multiple paid by GE, Precision Castparts could be worth about $100 billion, significantly higher than its 2016 purchase price of $37.2 billion.

Despite this underlying value surge, Berkshire Hathaway’s stock performance has been modest in 2026. Class A and B shares have gained slightly, performing a bit better than broader market averages recently, but the shares still lag the S&P 500 year-to-date by over 10 percentage points. Market observers note that Berkshire’s management, including CEO Greg Abel, tends to avoid investor events, which may reduce the visibility of Precision Castparts' improving business prospects among shareholders and analysts.

In other news related to Warren Buffett, a political campaign in Nebraska adjusted its advertising after complaints from Buffett’s family over the unauthorized use of his image. The campaign accelerated a new ad rollout following concerns that the previous commercial implied Buffett’s endorsement, which was not granted. Meanwhile, Berkshire Hathaway continues to maintain its strong cash position, repurchasing shares and holding significant equity stakes as part of its broader investment strategy as Buffett remains active at 96 years old.