Warren Buffett has spent decades urging investors to separate a company’s underlying economics from the market’s shifting enthusiasm. In Berkshire Hathaway’s (BRK.B) (BRK.A) 1993 shareholder letter, the CEO revisited a theme that runs through much of his writing: in the short term, stock prices can depart sharply from the progress of the businesses they represent. That performance gap, he suggested, can persist long enough to tempt investors into confusing momentum with durability — even though it rarely b ...

Core Insights - Warren Buffett has led Berkshire Hathaway for 60 years, achieving a per-share market value increase of 5,502,284% compared to the S&P 500's 39,054% during the same period [1] - Buffett's departure at the end of the year marks the end of an era, leaving behind a legacy of investment wisdom [1] Investment Philosophy - Uncertainty is a constant in the market, but it should not deter investors; long-term growth is expected despite short-term volatility [4][5] - The focus should be on buying wonderful companies at fair prices rather than fair companies at wonderful prices, emphasizing the importance of company fundamentals over stock prices [6][8] - Market corrections should be viewed as opportunities rather than threats, reinforcing the idea that great companies can withstand volatility and create shareholder value [7][8]

Core Insights - The Federal Reserve has cut interest rates for the third time in 2025, with a possibility of another cut next year, while equity markets are performing well due to economic growth [1] - The insurance industry is influenced by better pricing, climate-related risks, and rapid digitalization, with improved pricing supporting profitability despite catastrophe losses [1] Group 1: Berkshire Hathaway (BRK.B) - Berkshire Hathaway is a diversified conglomerate with over 90 subsidiaries, with insurance accounting for about 25% of total revenues, providing stability and reducing concentration risk [4] - The company has a strong financial position with a growing insurance float, which increased from approximately $114 billion in 2017 to about $176 billion by Q3 2025, allowing for low-cost funding for high-quality investments [7] - Berkshire's return on equity is 7.3%, which lags the industry average, but the company has shown improvement over time, with shares gaining 11.7% year to date [8] Group 2: MetLife (MET) - MetLife's New Frontier strategy focuses on cost cuts, global growth, and AI-driven operational efficiency, with a return on equity of 21% and an estimated EPS growth of 7.2% for 2025 [10][15] - The company offers a wide range of protection and investment solutions, benefiting from superior retention and cross-selling opportunities, supported by a diversified geographic footprint [12] - MetLife's strategy includes a 100-basis-point reduction in unit costs over five years and selective acquisitions to strengthen its market position [13][14] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for BRK.B's 2025 revenues implies a 3.5% year-over-year increase, while EPS estimates indicate a 5.2% decline, although EPS estimates have increased by 6.7% in the past 30 days [16] - For MET, the 2025 revenue estimate suggests an 8.2% year-over-year increase, with EPS expected to grow by 7.2%, although EPS estimates have slightly decreased by 0.1% recently [18] - Berkshire is trading at a price-to-book multiple of 1.56, while MET's multiple is at 1.88, both above their respective five-year medians [19]

Core Insights - Warren Buffett announced his resignation as CEO of Berkshire Hathaway, prompting increased scrutiny from investors regarding the company's portfolio management as Greg Abel prepares to take over in 2026 [1][2] Recent Portfolio Moves - Berkshire's largest purchase in the last quarter was a 16% increase in its stake in Chubb, acquiring 4.3 million shares [4] - The company also made significant investments in the American consumer sector, purchasing shares of Domino's Pizza and Sirius XM, along with smaller investments in Lamar Advertising and Lennar [5] - A notable move was the initiation of a position in Alphabet, acquiring 17.8 million shares valued at $4.3 billion [6] Financial Position - Berkshire's balance sheet reported a record $381.7 billion in cash and short-term investments at the end of Q3, indicating a strategy of stockpiling cash and limited buying activity [10] - The short-term investments primarily consist of U.S. Treasury Bills, reflecting a cautious approach in the current market environment [10] Investment Philosophy - Buffett's investment philosophy emphasizes contrarian strategies, seeking value rather than following market trends, and focusing on long-term growth through reinvestment [11][12] - The company has been prudent in taking gains from core positions and reallocating capital into perceived better value opportunities [13] - Buffett's steadfast approach has consistently outperformed the S&P 500 over decades, showcasing the effectiveness of his investment strategies [14] Strategic Messages - Berkshire's recent moves convey Buffett's enduring messages: take gains when appropriate, identify value, support American resilience, maintain cash reserves, and leverage compound interest [16]

Group 1 - The number of large U.S. corporate bankruptcies in 2025 is expected to reach record levels not seen in the last fifteen years, with indications that this trend may accelerate in 2026 [1] - The macroeconomic environment is contributing to the anticipated increase in corporate bankruptcies, suggesting a challenging landscape for businesses [1] Group 2 - The article highlights the author's extensive background in finance, including a decade at a Big 4 audit firm and current leadership in finance for a retail real estate operator, indicating a strong foundation for analysis [1] - The investment philosophy emphasized in the article focuses on thorough research and a long-term perspective, which is crucial for navigating market cycles [1]

Company Overview - Bjak Sdn, Malaysia's largest online insurance aggregator, is considering an initial public offering (IPO) within the next two years to facilitate its expansion into Europe, specifically targeting Spain and Germany by 2026 [1][3] - The company has been profitable since its inception in 2019 and has experienced a gross written premium increase of 20% to 30% this year, with expectations for faster growth as it enters new markets [2] Market Expansion - Bjak is shifting its focus to well-established auto insurance markets in Spain and Germany, following its recent expansions in Japan, Taiwan, and Thailand [1][3] - The firm plans to double its global workforce from nearly 200 employees by the end of 2026 to support its growth strategy [4] Industry Context - The Malaysian insurance industry is projected to see moderating growth, with non-life premium gains expected to slow to 5% in 2025 from 7.3% last year [5] - Despite this, the potential for growth remains strong due to increasing awareness of insurance coverage and a significant number of uninsured and underinsured Malaysians, particularly among lower-income households [6] User Base and Partnerships - Bjak currently has 7 million users and collaborates with 16 insurance brands, including Allianz SE and Tokio Marine [7] Entrepreneurial Background - The founder of Bjak, Wei Low, began his entrepreneurial journey at age 20 and has been inspired by successful figures like Warren Buffett, aiming to adopt a business philosophy that transcends mere financial success [8][9]

Billionaires who built fortunes in America's system should be giving far more away.They benefited from the U.S. education system, regulations, and venture capital networks, philanthropist Melinda French Gates said. Speaking to Wired editor-in-chief Katie Drummond recently, French Gates said those systems supported people who started businesses in America. French Gates discussed the Giving Pledge, which she launched in 2010 with Microsoft (NASDAQ:MSFT) co-founder Bill Gates and Berkshire Hathaway (NYSE:B ...

Leadership Changes - Warren Buffett is retiring as CEO of Berkshire Hathaway at the end of the year, with Greg Abel set to take over [1] - Other leadership changes include Todd Combs leaving for JPMorgan Chase and CFO Marc Hamburg announcing retirement effective June 2027 [2] Financial Position - Berkshire Hathaway currently holds $381.7 billion in cash on its balance sheet [3] - The company has been a net seller of stocks recently, with Buffett noting the stock market's high valuations [8] Investment Strategy - Berkshire Hathaway may increase its investments in tech stocks, which have historically been limited under Buffett's leadership [5] - The company recently opened a nearly $5 billion stake in Alphabet, indicating a potential shift in investment strategy [6] Dividend Consideration - Buffett has traditionally opposed paying dividends, preferring to reinvest profits, but the company might consider a dividend under new leadership [7] - Given the current lack of investment opportunities, a small dividend could be a way to share profits with shareholders [9] Market Performance - Berkshire Hathaway has a market cap of $1.1 trillion, which may limit its future growth potential [11] - Despite its size, the company remains highly diversified across various sectors, providing a stable investment option for shareholders [12]

Market Performance - The S&P 500 has increased by 17% in 2025, marking the third consecutive year of double-digit gains, resulting in an 83% gain over the past three years [1] Investment Strategy - Warren Buffett advocates for investing in S&P 500 index funds, yet Berkshire Hathaway sold its S&P 500 ETFs last year and has been a net seller of stocks for 12 consecutive quarters, a record streak [2] - Berkshire Hathaway's cash reserves have reached nearly $392 billion, reflecting a 200% increase over the past three years, the highest level ever [2] Market Valuation - The current market is perceived as expensive, with concerns about a potential stock market bubble following three years of high growth [4] - The S&P 500 cyclically adjusted P/E (CAPE) ratio is over 39, the highest in 25 years, indicating challenges in finding undervalued stocks [5] Investment Philosophy - Buffett emphasizes the importance of focusing on high-quality companies rather than cheap stocks, suggesting that current prices are not fair or cheap [6] - Maintaining cash reserves is crucial for capitalizing on investment opportunities when they arise, while staying invested allows for compounding returns over time [7]

Core Insights - Increasing inflation and cost of living are prompting retirees and those planning for retirement to seek safe and reliable investments to protect their savings [1] - Warren Buffett, known for his disciplined investment approach, emphasizes long-term value and consistent income, making his investment principles relevant for building a recession-proof retirement portfolio [2] Investment Opportunities - **Coca-Cola (KO)**: A long-standing investment in Buffett's portfolio since 1988, Coca-Cola is recognized globally and maintains consistent sales, making it valuable during recessions. It also offers reliable dividends, appealing to income-focused investors [3][4] - **Chevron (CVX)**: Recently, Buffett has made Chevron one of Berkshire Hathaway's largest holdings. The company boasts a dividend yield above 4% and has increased its dividend for 38 consecutive years, making it a dependable income source during economic downturns [5] - **Berkshire Hathaway (BRK.B)**: Buffett's own company provides built-in diversification across various industries, including insurance, utilities, and consumer goods. Although it does not pay dividends, its stable leadership and exposure to essential sectors make it a reliable choice during market volatility [5] - **Vanguard Dividend Appreciation ETF (VIG)**: This ETF allows everyday investors to adopt Buffett's principles by investing in companies with a strong record of raising dividends, indicating financial health and long-term reliability [6]