Warren Buffett recently stepped down as CEO of Berkshire Hathaway and moved to a chairman emeritus role. Over the roughly six decades he led the company, Berkshire delivered an average annual return of over 19%, compared with the market's average of 10%. The article argues stocks have become expensive: the S&P 500 averaged a 23% annual return from 2022 to 2025, largely on AI optimism, and its cyclically adjusted P/E of 41.8 compares with an average of 17.4, exceeded only in late 1999. Buffett said in a May CNBC interview that it is tough to find values when everybody prefers gambling. He has indirect exposure to AI through Alphabet, Apple, Amazon and utilities MidAmerican Energy and NV Energy, while Berkshire holds a $365.5 billion cash pile.
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