At 94, Warren Buffett continues to outperform the market — with conviction and clarity.
Berkshire Hathaway just notched its ninth record close of the year, even as the S&P 500 dipped into negative territory. The stock has posted seven consecutive days of gains, pushing its 2025 return to 17.21%.
In contrast, the S&P 500 is down 3.5% year-to-date.
Over the trailing 12 months, Berkshire is up more than 27%, while the index has gained just 8.63%.
Among the ten largest names in the index, Berkshire stands alone in avoiding a 10%+ drawdown from its 52-week closing high, according to Bespoke.
In a climate marked by volatility, geopolitical risk, and sharp pullbacks among the Magnificent Seven, investors are treating Berkshire as a flight-to-quality asset.
That’s no accident.
By the close of 2024, Berkshire had amassed a record $334 billion in cash and cash equivalents — the result of deliberate, disciplined positioning.
Throughout 2024, Buffett trimmed the equity book, executing a $134 billion selloff across high-profile holdings like Apple and Bank of America. He passed on major acquisitions, opting instead for restraint.
This isn’t a pivot — it’s a playbook. Buffett has consistently resisted paying up in overheated markets.
At the time, many market participants criticized the cash build. Today, that prudence is being rewarded.
The odds that Berkshire deploys its war chest in the near term remain low. Market valuations are still rich, and the Buffett Indicator — total market cap relative to GDP — remains well above its long-term average.
Buffett has always emphasized patience as a core investing principle. When he eventually puts capital to work in this uncertain environment, advisors and allocators who maintain liquidity may be best positioned to follow.
For RIAs, the takeaway is clear: discipline, dry powder, and a long-term lens continue to separate resilient portfolios from reactive ones.
