Core Insights - Warren Buffett emphasizes investment decisions based on business fundamentals rather than market conditions [1][5] - The S&P 500 has shown significant recovery and growth, advancing 12% year-to-date and rebounding 32% from its April low [1][2] Investment Strategy - Buffett's investment philosophy focuses on acquiring competitively advantaged businesses at reasonable prices, regardless of market highs [5][6] - A rational price is defined as trading at or below historical average valuations, with Apple’s price-to-earnings (PE) ratio serving as an example [5][6] Market Performance - Historically, the stock market has performed well after reaching record highs, with the S&P 500 achieving an average return of 9.4% in the 12 months following record highs, slightly better than its average return of 9% from non-record highs [7][8] - The S&P 500's forward earnings currently trade at 22.5 times, above the 10-year average of 18.5 times, indicating a potentially expensive valuation environment [9] Berkshire Hathaway's Investment in Apple - Berkshire Hathaway's investment timeline in Apple shows a progression from purchasing shares at 11 times earnings in Q1 2016 to selling at 39 times earnings in Q4 2024, highlighting the changing valuation landscape [10]