Shares of Berkshire Hathaway climbed to an eight-month high this week, extending a steady recovery that has narrowed the conglomerate’s performance gap with the broader U.S. stock market as investors grow increasingly optimistic about its diversified earnings base and capital allocation strategy.

The company’s Class B shares closed Tuesday at $512.37, their highest level since November 28, when they ended at $513.81. Class A shares also reached their strongest close since late November, finishing at $768,010, compared with $770,100 on November 28.

Despite the recent rally, Berkshire’s shares remain about 5% below the record highs reached in May 2025, shortly before Warren Buffett announced he would step down as chief executive at the end of that year, handing leadership to Greg Abel.

The rebound suggests investor confidence has continued to strengthen during the leadership transition, easing concerns that surrounded Buffett’s departure after six decades at the helm.

Although Berkshire has recovered strongly in recent weeks, the stock continues to trail the broader market.

According to Barron’s, Berkshire remains about 7.6 percentage points behind the S&P 500’s performance over the comparable period, suggesting there may still be room for further gains if investors continue rotating into defensive, high-quality companies.

That gap, however, has narrowed significantly. Just two months ago, Berkshire lagged the benchmark index by roughly 17.5 percentage points, meaning the conglomerate has erased more than half of its underperformance in a relatively short period.

The improving relative performance points to a shift in investor positioning as market volatility has increased and richly valued technology stocks have experienced bouts of profit-taking.

Unlike most large-cap companies, Berkshire derives earnings from dozens of businesses spanning insurance, railroads, utilities, manufacturing, energy, consumer products and one of the world’s largest publicly traded equity portfolios. That diversification has historically enabled the company to outperform during periods of economic uncertainty by reducing dependence on any single industry.

Nevertheless, Berkshire’s operating businesses have recently faced challenges.

Its railroad operations continue to contend with softer freight volumes and higher operating costs, while its insurance businesses are navigating elevated catastrophe claims and changing pricing dynamics across global markets. Investors will therefore be watching the upcoming quarterly earnings report for updates on underwriting profitability, railroad performance and the deployment of Berkshire’s massive cash reserves.

Another factor underpinning Berkshire’s recent strength has been solid performance from several of its largest publicly traded investments.

Its largest holding, Apple, now valued at more than $70 billion, has gained 13.6% this year as renewed optimism around artificial intelligence and stronger-than-expected earnings helped revive investor sentiment toward the iPhone maker.

Coca-Cola, Berkshire’s third-largest equity investment with an estimated value of $35 billion, has surged 25% year-to-date after reporting stronger-than-expected earnings and raising its full-year guidance, bolstering confidence in resilient consumer spending despite a challenging macroeconomic environment.

Meanwhile, Bank of America, Berkshire’s fourth-largest holding, has advanced 12.6% this year, lifting the value of the conglomerate’s stake to nearly $32 billion.

Appreciation in these core holdings has boosted the value of Berkshire’s investment portfolio and provided additional support for book value growth.

Investor sentiment also received a boost after UBS analyst Brian Meredith raised his price target on Berkshire’s shares. Meredith increased his target for the Class B shares to $585 from $570, while lifting his Class A target to $877,848 from $854,596, maintaining a “Buy” rating.

He also modestly raised his earnings forecasts and pointed to reports suggesting Berkshire may have repurchased as much as $11 billion of its own stock during the second quarter.

Large buybacks are often interpreted as a sign that management believes the shares remain undervalued. Repurchases also reduce the number of outstanding shares, increasing earnings per share and enhancing long-term shareholder returns.

Beyond quarterly earnings, investors will closely examine Berkshire’s capital allocation decisions.

The company has accumulated one of the largest cash positions in corporate America over recent years, prompting ongoing debate over when management will deploy those funds through acquisitions, equity investments, or additional share repurchases.

With financial markets remaining volatile and valuation gaps emerging across sectors, analysts believe Berkshire’s substantial liquidity gives it considerable flexibility to capitalize on attractive investment opportunities if they arise.

The conglomerate is expected to release its second-quarter earnings on Saturday, August 8, when investors will receive updated details on operating performance, cash holdings, investment activity and the scale of any share repurchases undertaken during the quarter.

FIFA President Gianni Infantino has suffered the most significant political setback of his decade-long leadership after abandoning a controversial plan to sell a stake in the commercial operations of the FIFA World Cup, a dramatic reversal that has exposed deep divisions within world football and cast fresh uncertainty over his bid for another term in office.

The collapse of the proposal, which came after an extraordinary backlash from football’s most powerful governing bodies, marks the first time Infantino has been forced to retreat on a flagship initiative under coordinated pressure from multiple continental confederations. It also raises broader questions about FIFA’s governance, consultation process and the limits of the president’s authority despite overseeing the governing body’s strongest financial period.

In a statement issued on Friday, FIFA confirmed it was withdrawing plans to establish a separate commercial entity that would have managed the World Cup and other major tournaments, with a proposed 20% stake to be sold to private equity investors.

A statement from Infantino in the early hours of Saturday read: “The FIFA Forward Enterprise project was intended to provide a basis for further strengthening our FIFA member associations and our sport worldwide, especially in those countries where support is most needed.

“And more so, as we said from the outset, to do this only if a majority of the FIFA member associations were in support and always subject to a consultation process with them, the FIFA Council, the confederations and wider stakeholders.

“Having listened carefully to all the views, it has become clear that the project has created divisions of a nature that, regardless of the level of support, are no longer in the interest of the objective set out in the first place. Our purpose has always been – and will always be – to unite and improve.

“As a result, this proposal will not proceed. Moving forward, my intent is to bring all interested parties back together in the coming days and weeks in the spirit of shared interest in our game, and with the objective to continue growing football everywhere, particularly in those countries that mostly need our support.”

The concession effectively ended three days of intense conflict within global football that culminated in UEFA threatening to boycott FIFA events unless the proposal was abandoned.

The plan had been one of Infantino’s most ambitious commercial initiatives, coming less than two weeks after FIFA staged what it described as its most financially successful World Cup.

Political Standing Weakened

Until this week, Infantino had appeared firmly in control of FIFA’s political landscape. His stewardship of record-breaking revenues and expanded World Cup competitions had positioned him as the overwhelming favorite to secure a fourth presidential term at the FIFA Congress in Morocco next March, with no credible challenger having emerged, according to Reuters.

That political certainty has now been shaken.

“A week ago, Infantino’s riding high and was almost certain to get elected overwhelmingly because he’s run against such a financially successful tournament,” Victor Matheson, professor of economics at the College of the Holy Cross in Massachusetts, told Reuters.

“That’s all in jeopardy now.”

The failed proposal has transformed what looked like a routine re-election into what could become FIFA’s most competitive presidential contest since Infantino succeeded Sepp Blatter in 2016 following FIFA’s corruption crisis.

Several football administrators now expect rival candidates to enter the race after the controversy exposed growing dissatisfaction with Infantino’s leadership style and decision-making process.

Resistance to the proposal extended well beyond Europe.

UEFA, widely regarded as FIFA’s most influential confederation because of its commercial strength and sporting influence, led the opposition by threatening to boycott FIFA competitions.

That stance was subsequently reinforced by the Asian Football Confederation, which publicly backed UEFA and CONCACAF.

“The AFC stands in solidarity with UEFA and CONCACAF in expressing serious concerns over FIFA’s proposal to introduce private investment into FIFA’s flagship competitions,” the confederation said.

Representing 47 member associations, including Australia, China, Japan and Saudi Arabia, the AFC warned that the mere prospect of a World Cup boycott demonstrated the seriousness of the crisis.

“The fact that the situation has reached the point where the real possibility of a FIFA World Cup boycott has entered public discourse should concern everyone who cares about the future of our game.”

The united front from multiple continental confederations represented one of the strongest institutional challenges Infantino has faced during his presidency.

The controversy also exposed rare public disagreement within FIFA’s senior leadership.

After FIFA defended the proposal by arguing it would unlock billions of dollars in additional funding for national football associations, several senior figures publicly distanced themselves from the initiative.

Senior adviser Carlos Cordeiro resigned, describing the proposal as “a bad deal for football.”

Chief Operating Officer Kevin Lamour reportedly accused Infantino of misleading FIFA staff and characterized the project as “a project of one person.”

Those public criticisms are significant because Infantino has generally maintained tight control over FIFA’s executive structure throughout his presidency.

Sources familiar with FIFA’s internal operations told Reuters that the Swiss administrator has often frustrated colleagues through an independent leadership style, although his ability to generate record revenues had previously allowed him to overcome internal opposition.

Familiar Strategy Fails

The setback contrasts with previous controversies that Infantino managed to survive.

In 2018, he abandoned plans for a $25 billion private investment vehicle linked to the Club World Cup after opposition from UEFA.

He also weathered sustained criticism surrounding Qatar’s hosting of the 2022 FIFA World Cup, including widespread scrutiny of his defense of the tournament and controversial public remarks made before the competition.

This week’s proposal, however, appears to have failed because key stakeholders said they were not consulted before FIFA announced the initiative.

According to Reuters, many football officials first learned of the proposal after details leaked to the media, fueling accusations that FIFA had bypassed its traditional governance processes.

The controversy intensified after reports that Infantino had selected Thrive Capital, the investment firm founded by Joshua Kushner, to lead the proposed investor group.

Trump Links Add Political Dimension

The involvement of Thrive Capital also drew attention because of Infantino’s close relationship with U.S. President Donald Trump. The relationship has attracted scrutiny since FIFA awarded Trump its inaugural Peace Prize last December.

Former FIFA vice-president Jim Boyce suggested Infantino’s growing proximity to political power may have influenced his leadership approach.

“I think what has happened here is that fame appears to have gone a little bit to Gianni’s head and his relationship with Donald Trump during that World Cup is nothing more than astounding,” Boyce told the BBC.

Questions about political influence also resurfaced after Trump publicly revealed during the World Cup that he had asked Infantino to overturn the suspension of U.S. forward Folarin Balogun following a red card.

Although Balogun was ultimately cleared to play by FIFA’s independent disciplinary body, the episode fueled criticism over the perceived closeness between FIFA’s leadership and the White House.

Sports marketing analyst Bob Dorfman said the Kushner connection compounded those concerns.

“It didn’t help that you had a Kushner involved in this whole thing,” Dorfman told Reuters.

“Especially what was going on during the World Cup with Balogun and Trump. To have a Trump relative involved in this only made the whole thing much worse.”

Trump said Friday that he did not discuss the proposed World Cup stake sale with Infantino.

Re-Election Battle Becomes Less Certain

Despite the political damage, analysts caution that it may be premature to conclude that Infantino’s presidency is nearing its end. His proposal was partly designed to generate additional funding for FIFA’s 211 member associations, many of which rely heavily on financial support distributed by FIFA and have benefited from increased development funding under his leadership.

Those national federations, rather than UEFA or other continental bodies, will ultimately determine the outcome of the presidential election.

To secure another four-year term through 2031, Infantino would need a two-thirds majority in the first round of voting or a simple majority in subsequent rounds.

Dorfman believes the FIFA president could still recover politically if he acknowledges mistakes made during the process.

“I know that’s not in his manner to do things like that but maybe he has to start apologising a little bit and say: ‘Maybe I handled this wrong’.”

Chinese electric vehicle giant BYD delivered its strongest monthly sales performance of 2026 in July, with surging overseas demand helping offset continued weakness in its home market as the company gradually emerges from production disruptions that weighed on deliveries earlier this year.

BYD sold 419,211 new energy vehicles (NEVs) in July, a 21.76% increase from a year earlier and a 3.9% rise from June, marking the company’s third consecutive month of year-on-year sales growth. The performance represented its highest monthly sales this year and brought deliveries within striking distance of the record 420,398 vehicles sold in December 2025.

The sharp acceleration suggests the world’s largest NEV maker is regaining momentum after a difficult start to the year, when battery production upgrades and softer domestic demand pressured deliveries.

Passenger vehicle sales totaled 411,072 units, up 20.54% year on year and 3.47% from June, while commercial vehicle sales surged 149.2% to 8,139 units, reflecting growing demand for BYD’s expanding electric bus and commercial vehicle portfolio.

The biggest driver of BYD’s recovery continued to be international markets, where the automaker posted another record month as it deepened its expansion across Europe, Southeast Asia, Latin America and other overseas markets.

Passenger vehicle and pickup sales outside China climbed 124.3% from a year earlier to 179,841 units, the highest monthly overseas total in the company’s history.

Exports accounted for roughly 43% of BYD’s total sales in July, underscoring a fundamental shift in the company’s growth strategy as overseas markets increasingly compensate for slowing domestic demand.

Based on the July figures, domestic sales were approximately 239,370 vehicles, representing an estimated 9% decline from a year earlier. Although sales in China remained lower than last year’s levels, the decline narrowed considerably from previous months, suggesting domestic demand may be stabilizing.

BYD said July is traditionally a slower month for China’s auto market, but demand for its latest flash-charging models remained resilient.

The company added that overseas deliveries continue to be constrained primarily by insufficient shipping capacity rather than customer demand, indicating exports could accelerate further as logistics bottlenecks ease.

Premium Brands Strengthen BYD’s Product Mix

BYD also continued to broaden its presence in higher-margin vehicle segments through its growing portfolio of premium and specialized brands. The core BYD Auto brand, which includes its Dynasty and Ocean series, delivered 350,178 vehicles during the month.

Performance was particularly strong at off-road brand Fang Cheng Bao, whose sales jumped 190.64% from a year earlier to 41,213 units, setting a new monthly record and highlighting strong consumer appetite for premium electric SUVs.

Premium brand Denza, jointly developed with Mercedes-Benz before becoming fully controlled by BYD, sold 19,196 vehicles, up 68.76% year on year, although sales slipped modestly from June.

The continued expansion of BYD’s premium portfolio has become so important as competition intensifies in China’s mass-market EV segment, where aggressive price competition has compressed industry margins.

BYD said demand for several recently launched models remains exceptionally strong. Sales of the Da Tang exceeded 10,000 units during July, while deliveries of the Tai 7 EV approached the same milestone.

The company noted that production of its second-generation Blade Battery continues to ramp up but remains insufficient to meet customer demand fully.

The battery transition has been one of the principal factors affecting BYD’s production this year. The company has been replacing its first-generation Blade Battery with an upgraded version capable of supporting ultra-fast “flash charging,” extending delivery times for several popular models as manufacturing capacity was reconfigured.

As production normalizes, the improved battery technology is expected to strengthen BYD’s competitiveness against both domestic rivals and global automakers.

Recovery Underway, But Year-To-Date Sales Remain Lower

Despite July’s strong performance, BYD is still working to recover ground lost earlier in the year. From January through July, the company sold 2.23 million NEVs, down 10.54% from the same period last year.

However, the year-to-date decline has narrowed steadily, improving from a 15.72% contraction recorded during the first six months of the year.

Meanwhile, overseas passenger vehicle and pickup sales reached 969,208 units during the first seven months of 2026, accounting for approximately 43.5% of total deliveries, further illustrating the company’s transformation from a China-focused manufacturer into a global automaker.

BYD also announced that cumulative NEV sales since inception have now surpassed 17.3 million vehicles, reinforcing its position as one of the world’s largest electric vehicle manufacturers.

However, the latest sales figures highlight an important evolution in BYD’s business model. While the Chinese EV market remains the world’s largest, slowing consumer demand, persistent price competition and industry overcapacity have encouraged manufacturers to accelerate international expansion.

BYD has emerged as one of the biggest beneficiaries of that shift. The company has rapidly expanded exports while establishing manufacturing operations in several overseas markets to reduce tariff exposure and strengthen regional supply chains.

Its growing international footprint also provides greater diversification at a time when competition within China has intensified, with dozens of domestic automakers competing aggressively on pricing, technology and vehicle features. If overseas demand continues at its current pace and battery production constraints ease further, BYD appears well positioned to sustain its recovery through the second half of the year, even as China’s competitive EV market remains challenging.