Core Insights - Warren Buffett is stepping down as CEO of Berkshire Hathaway at the end of the year after 60 years of leadership, during which the company has become a leading conglomerate and consistently outperformed the market [1] - Berkshire Hathaway has been actively selling shares, notably reducing its stakes in Apple and Bank of America, while making a significant investment in Alphabet [2][4] Investment Moves - Berkshire Hathaway has reduced its Apple shares to just over 238 million, representing 21.4% of its stock portfolio, and its Bank of America shares to just over 568 million, making up 9.6% of its stock portfolio [2] - The reduction in Apple shares is attributed to a disconnect between its valuation and projected earnings growth, with Apple trading at 33.6 times its projected earnings, a high premium compared to other major tech stocks [5][6] - The sale of Bank of America shares is seen as a strategic move to lock in profits from a stock that has significantly appreciated since Berkshire's initial investment in 2011 [8][9] New Investment in Alphabet - Berkshire Hathaway's investment in Alphabet marks a shift as the company has historically avoided high-growth tech stocks, now owning around 17.8 million shares [4] - Alphabet is recognized for its strong position in artificial intelligence, having achieved its first-ever $100 billion quarter in revenue and generating nearly $24.5 billion in free cash flow [11][13] - The company has a robust balance sheet, a competitive advantage in Google Search, and has recently begun paying dividends, aligning with Berkshire Hathaway's investment criteria [15][16]

Chip Somodevilla/Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. In the world of investing, few have achieved a track record as remarkable as Warren Buffett. From 1964 to 2023, he steered Berkshire Hathaway (BRK.B) to a staggering total return of 4,384,748%, far surpassing the S&P 500's already impressive gain of 31,223% during the same timeframe. Despite his knack for making savvy investments, the Oracle of Omaha doesn’t always go all in ...

Core Viewpoint - The article suggests investing equally in three companies—Alphabet, Amazon, and Apple—to capitalize on the growth of artificial intelligence, highlighting their strong market positions and financial performance. Group 1: Alphabet - Berkshire Hathaway acquired nearly 18 million shares of Alphabet, valued at over $5.5 billion, in the third quarter [6] - Alphabet holds a dominant 89% market share in internet search and 71% in web browsers, contributing to its advertising revenue of $74.1 billion in the third quarter [7] - Google Cloud revenue increased by 33% to $15.1 billion year-over-year, driven by the demand for cloud services to support AI programs [8] - A potential multi-billion-dollar deal with Meta Platforms for Google tensor processing units could further enhance Alphabet's AI capabilities [9] Group 2: Amazon - Berkshire Hathaway's position in Amazon consists of 10 million shares, valued at $2.2 billion, significantly less than its investment in Alphabet [10] - Amazon commands a 40% market share in U.S. e-commerce, generating $147.1 billion in revenue in the third quarter, but has a low profit margin of 4% [12] - Amazon Web Services (AWS) reported $33 billion in revenue for the third quarter, up 20% year-over-year, with a profit margin of 34% [14] Group 3: Apple - Berkshire Hathaway's largest holding is Apple, with 238.2 million shares valued at $66 billion, making up over 21% of its portfolio [15] - Apple experienced an 8% revenue increase to $102.5 billion in its fiscal fourth quarter, benefiting from customer loyalty and a diverse ecosystem [19] - The company is investing in AI technology, which is expected to enhance its product offerings and maintain its status as a strong investment [19] Group 4: Investment Strategy - A suggested investment of $10,000 split equally among the three companies would result in 10 shares of Alphabet, 14 shares of Amazon, and 12 shares of Apple, aligning with Buffett's investment philosophy [20]

Berkshire Hathaway's new boss faces the challenge of keeping the culture Warren Buffett built while making his own mark https://t.co/xgeXauxVXE ...

Group 1 - The Magnificent 7 index of major US tech stocks closed down 0.16% at 208.22 points, experiencing low volatility for most of the day [1] - The "super" market capitalization tech stock index increased by 0.23% to 407.45 points [1] Group 2 - Microsoft shares closed at 478.56, down 2.74% with a trading volume of 34.468 million shares [2] - Meta Platforms shares closed at 650.13, down 1.04% with a market capitalization increase of 11.30% [2] - Nvidia shares closed at 183.78, down 0.64% with a market capitalization increase of 36.89% [2] - Berkshire Hathaway Class B shares closed at 490.43, down 0.20% with a market capitalization increase of 8.20% [2] - AMD shares closed at 221.42, down 0.09% with a market capitalization increase of 83.31% [2] - Apple shares closed at 278.78, up 0.58% with a market capitalization increase of 11.83% [2] - Alphabet Class A shares closed at 320.21, up 0.99% with a market capitalization increase of 69.82% [2] - Eli Lilly shares closed at 993.64, up 1.16% with a market capitalization increase of 29.67% [2] - Tesla shares closed at 451.45, up 1.41% with a market capitalization increase of 11.79% [2] - Amazon shares closed at 231.78, up 1.69% with a market capitalization increase of 5.65% [2] - TSMC shares closed at 310.14, up 2.22% with a market capitalization increase of 58.60% [2]

Core Insights - JPMorgan Chase has made a significant external hire by bringing in Todd Combs from Berkshire Hathaway, which is expected to enhance its efforts in the national security sector [1] - The company is focusing on a substantial investment of $1.5 trillion aimed at expanding its presence in national security [1] Company Strategy - The recruitment of Todd Combs is seen as a strategic move to accelerate JPMorgan Chase's initiatives in national security [1] - This investment aligns with the growing demand for financial services in the national security space, indicating a proactive approach by the company [1]

Core Viewpoint - The stock market is perceived as generally overvalued, yet there are still investment opportunities available for those willing to explore beyond traditional avenues [2][3][20]. Investment Activity - Berkshire Hathaway has been a net seller of stocks for 12 consecutive quarters, selling over $24 billion worth of equities in the first nine months of 2025, resulting in a cash position of $354 billion [2][3]. - Buffett's recent investments total approximately $14 billion, indicating a strategic approach to investing in the current market [4][6]. Notable Purchases - Significant investments include $4 billion in Alphabet, the entirety of OxyChem from Occidental Petroleum, and increased stakes in Japanese trading houses Mitsubishi and Mitsui [7][10][18]. - The purchase of OxyChem was particularly strategic, as it allowed Berkshire to acquire a subsidiary at a compelling value, while maintaining a position in Occidental's preferred shares that yield an 8% dividend [14][15]. Market Valuation Insights - The "Buffett Indicator" suggests that U.S. stocks are expensive, with the current level around 225%, indicating potential risks for investors [8]. - The S&P 500's price-earnings ratios are at levels comparable to the peak of the dot-com bubble, reinforcing the notion of overvaluation in the market [8]. Investment Strategy - Buffett's recent purchases reflect a shift towards identifying value in sectors and companies that may not be on the radar of typical investors, such as the chemicals industry and international stocks [9][21]. - The focus on Japanese trading houses highlights a broader strategy of seeking value outside the U.S. market, as these stocks appear more attractive from a valuation perspective [18][21]. Conclusion - Despite the overall market being expensive, there are still opportunities for significant returns if investors are willing to expand their search beyond conventional investments [20][22].

Key Takeaways BRK.B's building-products unit contributes 34-38% of manufacturing revenues and 35-45% of earnings.Diversified exposure across housing and construction helps BRK.B weather sector cyclicality.BRK.B shares have risen 8.7% YTD but face valuation concerns with a P/B ratio above the industry average.Berkshire Hathaway’s (BRK.B) manufacturing operations are a vital pillar of its long-term growth strategy, contributing significantly to revenues, earnings stability and diversification. Spanning indust ...

Core Insights - Warren Buffett has been a net seller of stocks for 12 consecutive quarters, indicating a cautious approach to the current market environment [1][6][7] - Berkshire Hathaway has sold $183.53 billion more in stocks than it has purchased over the last three years, reflecting a strategic shift in investment philosophy [7][8] - The Buffett Indicator, a measure of market valuation, has reached an all-time high of 223%, suggesting that the stock market is historically overpriced [10][11] Investment Philosophy - Buffett's famous quote, "be fearful when others are greedy, and greedy when others are fearful," encapsulates his investment strategy, emphasizing caution in a high-valuation environment [5][6] - Despite selling stocks, Buffett maintains a long-term optimistic view on the U.S. economy and stock market, indicating that his selling may be more about strategic profit-taking rather than outright pessimism [5][9] Market Conditions - The current stock market is characterized by high valuations, making it increasingly difficult to find value, which has led to Buffett's persistent selling activity [8][13] - Specific stocks, such as Apple, have seen significant increases in their price-to-earnings ratios, further complicating the search for attractive investment opportunities [12][13] Historical Context - Buffett's track record shows a cumulative gain of over 6,107,000% in Berkshire Hathaway's Class A shares, highlighting the effectiveness of his patient investment approach [17][18] - Historical examples, such as Buffett's investment in Bank of America during the financial crisis, illustrate the potential for significant returns when capitalizing on price dislocations [18][20] Future Outlook - Berkshire Hathaway holds nearly $382 billion in cash and equivalents, positioning the company to take advantage of future investment opportunities when valuations become more favorable [21]

U.S. stock markets have slowed and and lag global markets, sometimes by wide margins. - MarketWatch photo illustration/iStockphoto A few friends of mine have been surprised, even amused, when I told them that I’ve sharply dialed back my exposure to U.S. stocks this year in favor of overseas markets. Have I erred? After all, the S&P 500 is up almost 17% so far in 2025. But guess what? You’d have made a lot more this year investing in much hotter non-U.S. markets. Check out these returns for 2025, based on ...