It is time to switch from SP500 to Berkshire. SPY, and QQQ have converged the mag 7 dominate the index weighting, if and when AI bubble bursts, both indexes will suffer. On the other hand, Berkshire with non-tech operating business, significant cash, will continue to muddle through, and on relative basis outperform the market.
At some opportune time, I will deploy my short SPY cash into Berky. There was an opportunity, and I missed it. Hopefully I get another opportunity.
BRK/B down 22%??
S&P down 38%??
Berk won’t get a pass, but the price adjustments will not be as severe. Good theory.
I am not sure which period you were comparing. Currently Berkshire has very limited exposure to AI, outside of their Berkshire Hathaway Energy, which also has limited exposure to energy buildout for AI data centers, Berkshire reduced their Apple ownership also, thus, even their equity portfolio has limited exposure to tech/ AI.
Berkshire has big market cap, sufficiently liquid, and uncorrelated to tech/ai, I could think of. For someone like me, a relative outperformance on a downmarket is more important, because in a bull market I can outperform the market 
IF only Berkshire pays dividend… who knows that could also be coming…
I have been thinking about it… here are some additional thoughts…
Shorting SPY and deploying that in Berkshire as a theory sounds good, there are practical challenges like margin impact, etc. But I have to come up with a better trade idea of how to implement this.
Already Berkshire is underperforming since WEB announced retirement. May be lot of WEB fans leaving the stock, but it is setting up the stock as a better hedge, if this trend continues…
BRK at 1.6 PBV is expensive.
REIT’s may be another place to hide. The valuations are below historical levels, with lot of room to raise dividends, and in an rate cut environment, they may be relatively outperforming, heck they may even post some positive numbers…
No need to hide and run anywhere.
Just dollar cost average in S&P500 index.
Get rich slowly. Sleep well. Enjoy life.
Today, Berkshire received a rare sell rating from KWEB. While the analyst mentioned multiple reason, the primary reasons are:
Berkshire Hathaway stock is down nearly 1% Monday in the wake of receiving the equivalent of a sell recommendation from KBW analyst Meyer Shields, who cited several earnings headwinds for the conglomerate headed by Warren Buffett.
In a client note published early Monday, Shields cut his rating on Berkshire to Underperform from Market Perform and reduced his price target on the Berkshire stock continues to lag behind the overall market, continuing a trend since the Berkshire annual meeting in May when Buffett surprised shareholders by saying he would step down as CEO at year-end 2025 while remaining chairman.
I have flagged the insurance under performance in another post. While the reasons highlighted by the analyst are more or less aligned with my thought process, nevertheless I welcome this downgrade and any price decline. If berkshire could get to $400, I know I am greedy, that will basically setup the stock for next few years of outperformance. WIth or without Buffett, Insurance, railroad and most of the operating businesses will do okay. A significant price decline might provide an opportunity for Berkshire to do a significant buyback, of course, they may choose not to do anything.
I believe it was just the opposite. Geico margins are at 15% as opposed to the usual 5. No / or lower hurricanes hitting land means underwriting will also overperform, which usually leads to more competitive pricing the following year from others.
So it’s not that the insurance segments have underperformed, its that they are performing so well they have nowhere to go but down.
Or at least that’s my recollection.
It is understood, the stock price doesn’t reflect the past but the future earnings… something generally Berkshire crowd with their rear-view mirror don’t get it 
PS: Sorry could not let that go…
Buy and hold MKL. You will make 15% / year over the long term.
Both 25 and 30 year past returns are between 9.4 and 9.7. What has changed?
This is a good question.
In the last 15 years, CAGR has been 12%. Markel Ventures is maturing and contributing. I expect this component to grow.
Oct. 29, 2025 4:37 PM ETMarkel Group Inc. (MKL)
RICHMOND, Va., Oct. 29, 2025 /PRNewswire/ – Markel Group Inc. (NYSE:MKL) today reported its financial results for the third quarter of 2025. The Company also announced today it filed its Form 10-Q for the quarter ended September 30, 2025 with the Securities and Exchange Commission.
“I’m very pleased with our overall results and the progress we’ve made as a company this year,” said Tom Gayner, Chief Executive Officer. “Revenues and adjusted operating income of our businesses are both up for the year and for the quarter. We’re seeing improvement in our insurance combined ratio. And $2.1 billion in operating cash flow has helped fund continued steady share repurchases. In short, the strength of our diversified approach is on display, and we’re seeing tangible signs of improvement in areas we’ve been focused on.”
Summary of our third quarter results:
If you are going to paste the press release, you could just paste the link…
You don’t have to read it
Just make sure you don’t get into data center REIT’s 
First, I have decided to ignore your post. But thought I will share this.
Why I write? Because it helps me to think clearly, at times deeply, keep me sharp, and share my views. Merely pasting the press release shows a certain laziness, instead of saying here are the thinks that I think are important, the 3 thinks why you should consider… etc.
Of course it is your choice, just like I have a choice as a reader.
Cheers,
