Core Insights - Warren Buffett's stock-buying test remains relevant in 2026, emphasizing the importance of evaluating a company's earnings potential [1] - The U.S. stock markets have experienced a record-setting run for over three years, continuing into 2026 due to a positive earnings environment [2] - Total S&P 500 earnings are projected to grow by 12.9% in 2026, with a 9.3% growth rate when excluding the tech sector [3] Earnings Outlook - An improving corporate earnings outlook is indicated by steadily rising estimates, as reported by Zacks Investment Research [3] - Despite geopolitical tensions, investors are largely ignoring these factors and focusing on stock purchases, aligning with Buffett's advice [4] Market Performance - As of February 12, 2026, the S&P 500 increased by approximately 1.35% for the year, while the Dow gained 3.96%, despite early-year market volatility [5] - The market's reaction to significant news, such as the Justice Department's investigation into the Federal Reserve, shows resilience, with the S&P 500 recovering to an all-time high [7] Investment Strategy - Investors are encouraged to estimate a company's earnings range for the next five-plus years and to buy stocks at reasonable prices if they can do so [8] - It is advised not to let macroeconomic or political environments deter investment decisions or good buying opportunities [8]