The greatest investor the world has ever seen announced his retirement this weekend.
Warren Buffett delivered the news at the Berkshire Hathaway annual shareholders meeting on Saturday that he’ll be stepping down on January 1, 2026.
Naturally, this was the big story of the day. But all I keep hearing is that the stock is down 5% on the news.
You gotta be kidding me.
JC and I have been joking for years that when this moment comes, you buy the dip. And now that it’s here, we’re doing it.
So, let’s tell the real story of Buffett and Berkshire shares these days.
What all the headlines aren’t telling you is that Buffett literally just went out on top in the most GOAT fashion. Let me explain…
Berkshire closed at fresh all-time highs Friday.
Only a handful of stocks in the S&P 500 could say the same.
The market just suffered a swift and steep drawdown. It's the worst of the entire cycle. A lot of stocks have been absolutely crushed. But not this one.
Not only that, but BRK also recently made fresh all-time highs relative to the broader market.
My point is, recession or not, bear market or not, Uncle Warren is still killing it. Even on his way out the door.
Only the best stocks in the market trade at ATHs relative to the SPX. After all these years, Berkshire is still one of them.
It’s a best-in-breed, must-own, secular leader. There is no other company like it. And this is why Buffett is the GOAT.
BRK has outperformed the S&P 500 by about 40% this cycle. The stock has doubled off its 2022 bear market low.
And they did it in the most Berkshire way possible. Just last year, Buffett was getting criticized, as he so often does, for hoarding cash during a bull market. He ended up being right.
He also sold two-thirds of the firm's Apple stake throughout the year, finishing just before the stock peaked and rolled over in December.
He actually took some big profits across the board last year, selling over $140 billion worth of stock.
In another big move, Berkshire increased their exposure to international stocks with a focus on Japanese banks and trading houses. They did this just before international stocks started outperforming.
All of these decisions, now with the benefit of a little hindsight, appear to have been good ones.
Buffett’s still got it!
And the ultimate measure of all is telling us that Berkshire and Buffett are still the best in the business…
New all-time highs.
What a way to retire. Warren Buffett has been more than just a great capital allocator. He’s been the inspiration for generations of investors.
And, frankly, he’s been a great thought leader, too.
Buffett and Munger will have a lasting impact not just on markets and the way we invest but on American society. The investing duo has educated an entire country on the importance and power of investing for the long run. What a legacy to leave behind.
So, today, I would just like to say congratulations and thank you to Mr. Buffett.
He’s had a huge impact on me and my career.
He taught the world about free markets and capitalism better than anyone could.
By showing us what’s possible.
It’s great to see him go out on top. No one deserves it more.
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