Core Viewpoint - The traditional 60/40 portfolio, consisting of 60% stocks and 40% bonds, is currently underperforming compared to historical standards, marking a significant shift in investment dynamics [2][4]. Group 1: Historical Context - The 60/40 portfolio has been considered a balanced investment strategy for decades, effectively managing volatility through its stock and bond allocation [1]. - Historically, there has been only one instance in the past 150 years where the 60/40 portfolio faced more challenges than the stock market, which is occurring now [2]. Group 2: Current Market Conditions - The period from late 2021 to 2025 is noted as the worst bear market for bonds in history, with bond yields at historically low levels prior to aggressive interest rate hikes by the Federal Reserve [4]. - While the stock market has rebounded and reached record highs, the bond market continues to lag due to persistent inflation and concerns over tariffs affecting prices [5]. Group 3: Investment Strategy Implications - The current market imbalance suggests that investors should reassess their investment objectives and risk-reward profiles, as a typical 60/40 allocation may have shifted to approximately 80% stocks and 20% bonds [6]. - Rebalancing portfolios could present opportunities, as selling stocks at high prices and buying bonds at low prices may be a strategic move if markets revert to historical averages [6]. Group 4: Emerging Risks - Prior to 2021, the main risk associated with the 60/40 portfolio was its limitation on upside performance, but a new risk has emerged where both stocks and bonds may decline simultaneously [7].

Core Insights - Warren Buffett is set to retire as CEO of Berkshire Hathaway at the end of the year, with Greg Abel recommended as his successor, marking a significant transition for the company [1][2] - The company is expected to continue trimming its Apple holdings and rebalancing its equity portfolio, with a focus on more active trading strategies from investment managers Todd Combs and Ted Weschler [1][3] Transition and Leadership - Buffett's retirement plan was communicated during the May annual meeting, emphasizing a well-structured transition that maintains Berkshire's culture while empowering Abel in capital allocation decisions [2] - The transition is anticipated to lead to a more dynamic trading approach, contrasting with Buffett's traditional investment style [3] Investment Strategy and Portfolio Adjustments - Berkshire has significantly reduced its Apple stake, with reports indicating that the holding was more than halved by mid-2024, valued at approximately $69.9 billion by late 2024, down from about $174.3 billion at the end of the previous year [4][5] - The company's selling pace is linked to a record cash reserve exceeding $325 billion, reflecting a strategic priority to maintain flexibility amid rising policy uncertainties and limited investment opportunities [5] Future Outlook on Apple Holdings - The post-Buffett management team is likely to continue diversifying away from large single holdings, particularly given Apple's current valuation compared to when Berkshire first invested in 2016 [6] - Ongoing adjustments to the Apple position are expected, indicating that the rebalancing process is not a one-time event but rather a continuous strategy [6]

Financial Strategies for Year-End Preparation - The article emphasizes the importance of taking financial actions before the end of the year to alleviate stress during the holiday season and prepare for 2026 [1][2]. Tax Strategies - Harvesting tax losses is recommended, especially in September, which is typically a weaker month for stock performance. Losses can offset capital gains and reduce overall tax bills, with up to $3,000 in excess losses applicable to ordinary income [3]. - It is crucial to avoid wash sales when harvesting tax losses, which occur if a substantially identical security is purchased within 30 days before or after the tax loss is taken [3]. Retirement Contributions - Maximizing contributions to retirement accounts, such as 401(k) plans, is advised before year-end. Contributions made before the end of the year count for the 2025 tax year [4]. - For individuals aged 60 to 63, the catch-up contribution limit increases to $11,250 for 2025, allowing for significant boosts to long-term account balances if spread out over the remaining months [5]. Portfolio Management - Portfolio rebalancing is suggested as a proactive measure, even before year-end. A review of the portfolio can help ensure alignment with investment goals, especially after significant market gains [6][7]. - Given the stock market's performance, with gains exceeding 20% in the past two years and a year-to-date return over 13% as of mid-September, reallocation may be beneficial to mitigate risks from potential market corrections [7]. Income and Capital Gains Monitoring - Monitoring income levels is important, particularly in low-income years, as this may present opportunities to realize capital gains at a lower tax rate. Some taxpayers may qualify for a 0% rate on long-term capital gains depending on their taxable income [8].

Core Viewpoint - Rockland Trust Co has reduced its stake in Berkshire Hathaway, selling 50,487 shares for $25.66 million, which reflects ongoing portfolio rebalancing while Berkshire remains a core holding for many institutional investors [2][7]. Company Overview - Berkshire Hathaway has a market capitalization of $1,033.0 billion and reported a trailing twelve months (TTM) revenue of $383.9 billion and net income of $80.9 billion as of July 10, 2025 [4]. - The company operates as a diversified holding company with substantial operations in insurance, transportation, energy, and manufacturing, serving individuals, corporations, and government entities globally [5]. Financial Metrics - As of June 30, 2025, Berkshire Hathaway's remaining position in Rockland Trust Co's portfolio is valued at $10.8 million, representing 0.5% of the fund's 13F assets [2]. - The stock closed at $478.27 on July 10, 2025, reflecting a 16.5% increase over the past year, with a forward price/earnings ratio of 27.7 and an EV/EBITDA of 9.5 [3][4]. - The five-year revenue compound annual growth rate (CAGR) for Berkshire Hathaway is 7.9% [3]. Leadership Transition - Warren Buffett will step down as CEO at the end of 2025, which has contributed to a nearly 9% decline in shares over the past three months [6]. - Incoming CEO Greg Abel has been instrumental in expanding the company's non-insurance portfolio, particularly in energy and utilities, and Berkshire Hathaway holds nearly $350 billion in cash and short-term investments for future growth opportunities [8]. Investment Outlook - Despite the leadership change, Berkshire Hathaway is expected to maintain its investment philosophies under Greg Abel, suggesting that the stock remains a long-term buy [9].

Core Insights - Terreno Realty (TRNO) has acquired an industrial property in Santa Ana, CA, for approximately $49.5 million, with a stabilized cap rate of 5.7% [1][9] - The company is actively restructuring its portfolio by selling non-core assets and focusing on value-accretive investments to support long-term revenue growth [2][4] Property Details - The newly acquired property at 3500 West MacArthur Boulevard includes a 134,000 square foot industrial distribution building on 12.1 acres, fully leased to a major home improvement retailer [3][9] - The property features seven dock-high and three grade-level loading positions, strategically located near I-405 in Orange County, enhancing its attractiveness to potential tenants [3][9] Portfolio Strategy - TRNO employs a disciplined capital-recycling strategy, having recently sold two properties for a total of approximately $114.5 million and acquired another industrial property in Los Angeles for around $10 million [4] - As of May 6, 2025, TRNO has acquisitions worth about $49 million under contract and nearly $75.8 million under letters of intent, indicating ongoing expansion efforts [4] Market Positioning - The company is well-positioned to enhance its portfolio across six major coastal U.S. markets, including New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C., which show strong demographic trends and demand for industrial real estate [5] - Despite the positive positioning, macroeconomic uncertainties and tariff issues are noted as potential concerns for the industry [5] Stock Performance - TRNO shares have increased by 5.5% over the past month, outperforming the industry average increase of 2.2% [6]

Core Insights - Federal Realty Investment Trust (FRT) has sold Levare, a 108-unit residential building in Santana Row, San Jose, CA, for $74 million to unlock value and invest in long-term accretive opportunities [1] - Santana Row is a prominent mixed-use destination in Silicon Valley, encompassing 2.5 million square feet of retail, office, residential, and hotel space, attracting 8.5 million annual visits [2] - The sale of Levare will enhance Federal Realty's focus on key markets and improve financial flexibility for investing in high-performing assets aligned with long-term growth objectives [3] Company Strategy - Federal Realty's portfolio consists of premium retail assets in affluent communities, positioning the company for growth with stable cash flows from a diverse tenant base [4] - The company's strategic rebalancing of its portfolio towards premium markets and mixed-use developments is expected to benefit long-term growth [4] Market Performance - Federal Realty's shares have declined by 8.3% over the past three months, which is greater than the industry's decline of 5.9% [5]

Financial Data and Key Metrics Changes - Cannae's total operating revenue for Q1 2025 was $103 million, a 7% decrease from the prior year due to lower restaurant revenue [22] - The company reported net recognized gains of $7 million in Q1 2025 compared to $5 million in the prior year, including non-cash fair value losses on Paysafe and Rapid7 [25] - Cannae's equity in earnings and losses of unconsolidated affiliates posted a $2 million net loss in Q1 2025 compared to an $18 million gain in the prior year [26] Business Line Data and Key Metrics Changes - CNB reported revenue of $580 million, representing 3.6% constant currency organic growth compared to the prior year's first quarter, with adjusted EBITDA of $211 million, exceeding consensus expectations [12] - Alight reported total revenue of $548 million for Q1 2025, a 2% decrease from the prior year, but adjusted EBITDA increased by $2 million to $118 million, also ahead of consensus estimates [13] - The Restaurant Group's operating expenses were $125 million in Q1 2025, down $27 million from the prior year, reflecting a focus on cost reduction [23] Market Data and Key Metrics Changes - Cannae's largest public investment, Dun and Bradstreet, is set to be acquired for $4.1 billion, from which Cannae expects to receive $632 million in proceeds [7] - The company anticipates utilizing approximately $730 million from public portfolio sales for shareholder returns and debt repayment [9] Company Strategy and Development Direction - Cannae aims to rebalance its portfolio away from public investments and focus on attractive companies with positive cash flows, return capital to shareholders, and improve operational performance [7] - The company has expanded its strategic relationship with JANNA Partners, acquiring an additional 30% stake to enhance capital allocation towards proprietary acquisitions [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the embedded value in Cannae's portfolio and the potential for stock price appreciation as the strategic plan is executed [49] - The company is committed to returning a significant amount of capital to shareholders through share repurchases and dividends following the DNB transaction [8] Other Important Information - Cannae appointed Bill Royan and Woody Tyler to its board, both bringing extensive experience in investment management [11] - The acquisition of Vitality Stadium is seen as a financially attractive redevelopment opportunity for the club, with expected mid-teens returns [43] Q&A Session Summary Question: Can you discuss the revenue and earnings profile of JANNA Partners and its assets under management? - Management indicated that JANNA Partners has over $2 billion in assets under management and is performing well financially [31] Question: Are there plans to increase ownership in JANNA Partners? - Currently, there are no plans to increase ownership percentage as the existing structure is deemed effective [34] Question: Can you elaborate on the Vitality Stadium acquisition? - Management believes the redevelopment of the stadium is financially compelling, with expected mid-teens returns on investment [43] Question: How does Cannae plan to deploy incremental capital for M&A? - In the short term, the focus will be on returning capital to shareholders, but there will be opportunistic investments in attractive businesses [46]

Financial Data and Key Metrics Changes - Cannae's total operating revenue for Q1 2025 was $103 million, a 7% decrease from the prior year due to lower restaurant revenue [22] - The company reported net recognized gains of $7 million in Q1 2025 compared to $5 million in the prior year [25] - Cannae's equity in earnings and losses of unconsolidated affiliates posted a $2 million net loss in Q1 2025, compared to an $18 million gain in the prior year [26] Business Line Data and Key Metrics Changes - CNB reported revenue of $580 million, representing 3.6% constant currency organic growth compared to the prior year's first quarter [12] - Alight reported total revenue from continuing operations of $548 million for Q1 2025, a 2% decrease from the prior year [13] - Adjusted EBITDA for Alight was $118 million, a $2 million increase compared to the prior year, with management affirming guidance for full-year 2025 [13] Market Data and Key Metrics Changes - Cannae's largest public investment, Dun and Bradstreet, is set to be acquired for $4.1 billion, with Cannae expected to receive $632 million in proceeds [7][8] - The company has sold approximately $1.1 billion of public portfolio stakes since the beginning of 2024, expecting to utilize around $730 million for shareholder returns and debt repayment [9] Company Strategy and Development Direction - Cannae aims to rebalance its portfolio away from public investments and focus on attractive companies with positive cash flows [7] - The company is committed to returning capital to shareholders and improving operational performance of its portfolio companies [7] - Cannae has expanded its strategic relationship with JANNA Partners, acquiring an additional 30% stake to enhance capital allocation towards proprietary acquisitions [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the embedded value in Cannae's portfolio and the potential for stock price appreciation as the strategic plan is executed [48] - The company is focused on returning significant capital to shareholders while remaining open to opportunistic investments [45] Other Important Information - Cannae appointed Bill Royan and Woody Tyler to its board, both bringing strong investment management experience [11] - The acquisition of Vitality Stadium is seen as an attractive investment opportunity, with expected mid-teens returns [41] Q&A Session Summary Question: Can you discuss the revenue and earnings profile of JANNA Partners? - Management indicated that JANNA has significantly higher assets under management (AUM) than initially invested, exceeding $2 billion, and is performing well financially [30] Question: Are there plans to increase ownership in JANNA Partners? - Currently, there are no plans to increase ownership percentage as the existing structure is deemed effective [33] Question: Can you elaborate on the Vitality Stadium acquisition? - Management believes the redevelopment of the stadium is financially compelling, with expected mid-teens returns on investment [41] Question: How does Cannae plan to deploy incremental capital for M&A? - In the short term, the focus will be on returning capital to shareholders, but the company remains open to attractive investment opportunities [45]