This post has been updated and republished with 2025 market insights comparing Berkshire Hathaway and the S&P 500.
Read the latest version here:
Smart Money 101: Berkshire vs. S&P 500 — Why Buffett Might Be Winning 2025
Berkshire vs. S&P 500: Is Buffett Playing 4D Chess While the Market Struggles?
The Ultimate Market Showdown
Alright, let’s be real—if you’ve been keeping an eye on the stock market, you’ve probably asked yourself: “Should I just stick with the S&P 500, or should I trust Uncle Warren and throw some money into Berkshire Hathaway?”
Well, in 2025, that question has become more important than ever. The numbers don’t lie: The S&P 500 is down 4.8% year-to-date, while Berkshire Hathaway is up 9.41%. That’s a 15-percentage-point gap—pretty wild considering how the market usually plays out.
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham
Translation? Short-term noise might favor one side, but long-term fundamentals tell the real story. And right now, Buffett’s steady hand seems to be winning.
Market Trends: Is the Tech Party Over?
Last year, the Magnificent 7 (Apple, Microsoft, NVIDIA, Tesla, Amazon, Meta, Alphabet) were running the show. Fast forward to 2025, and… well, let’s just say they’re not looking so invincible anymore.
What’s Going On?
NVIDIA (NVDA): After dominating AI chips, there are now fears of declining demand post-DeepSeek crisis.
Tesla (TSLA): Musk is facing political drama (what’s new?), and sales in Europe and China are slumping.
S&P 500 Overall: Goldman Sachs recently slashed its year-end target from 6,400 to 6,200, forecasting only a 5% gain.
David Kostin, chief strategist at Goldman Sachs, didn’t hold back:
“The Magnificent 7 has turned into the Maleficent 7.”
Ouch. That’s not exactly confidence-inspiring.
Meanwhile, Buffett? He’s playing a different game altogether.
Berkshire Hathaway: Holding Cash Like a Boss
Buffett’s mantra is simple: “The U.S. stock market is the best place to invest—but only at the right price.”
That’s why Berkshire Hathaway has been hoarding cash like a squirrel before winter—holding 30-40% in reserves, just waiting for the right moment to strike. While tech investors are sweating over every earnings call, Buffett is chilling, waiting for a fire sale.
Berkshire’s Key Moves
Apple (AAPL), Bank of America (BAC), American Express (AXP): All down about 10% this year.
Coca-Cola (KO): Up 10%—a steady performer that Buffett has held forever.
Berkshire Hathaway Overall: Up 9.41% and looking solid.
According to CNBC:
“Berkshire Hathaway’s massive cash reserves make it the ultimate bargain hunter in a volatile market.”
In other words, while everyone else is playing musical chairs with tech stocks, Buffett is waiting for the music to stop so he can scoop up deals.
My Personal Take: Why I’m Watching Berkshire B Shares
I’ve had my eye on Berkshire Hathaway Class B shares for a while now. (Class A shares? Yeah… unless I hit the lottery, that’s not happening.)
My plan? Slowly stack up shares whenever the price hits my target. I’ve got some money in the Magnificent 7, but let’s be honest—they can be a wild ride. That’s why I see Berkshire Hathaway as my safety net. It’s like having a slow-but-steady friend in your portfolio who never panics.
Looking Ahead: Who’s Gonna Win This Battle?
It’s still early in 2025, so anything can happen. Maybe AI stocks go on another ridiculous rally. Maybe Trump—or whoever takes the political spotlight—shakes up the market. But one thing is clear: Berkshire’s slow and steady strategy is paying off.
What Experts Are Saying
Goldman Sachs: Predicts a 5% gain for the S&P 500 by year-end.
CNBC: Calls Berkshire “the best-positioned buyer” in the current market.
Wall Street Journal (WSJ): Says the S&P 500’s fate hinges on whether tech stocks can recover.
Your Turn: Let’s Talk Money
Are you sticking with the S&P 500 or making a move on Berkshire Hathaway?
Do you go for short-term gains, or are you all about long-term security?
What’s your take on Buffett’s golden rule: “Be greedy when others are fearful”?
Drop a comment—I’d love to hear what you’re thinking!
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