I suspect that Berkshire’s lagging the S&P recently is much more related to an unwinding of a “flight to safety” trade as the broad market has recovered its losses in the aftermath of the tariff volatility. Buffett’s retirement as CEO didn’t help sentiment, of course. Buffett’s perennial optimism notwithstanding, I do think there is a big difference in today’s overall economic and political climate that doesn’t bode well for the tailwind. I’m still “all in” on America but my expectations of the future are much lower than the past.
I suspect that Berkshire’s lagging the S&P recently is much more related to an unwinding of a “flight to safety” trade as the broad market has recovered its losses in the aftermath of the tariff volatility. Buffett’s retirement as CEO didn’t help sentiment, of course. Buffett’s perennial optimism notwithstanding, I do think there is a big difference in today’s overall economic and political climate that doesn’t bode well for the tailwind. I’m still “all in” on America but my expectations of the future are much lower than the past.
Agreed - I think the end of the "flight to safety" makes the most sense.