From 1965 through 2025, Berkshire Hathaway shares delivered a compound annual gain of 19.7%, compared with a 10.5% annualized total return for the S&P 500. The article revisits Warren Buffett's well-known line from his October 2008 New York Times op-ed, "Be fearful when others are greedy, and be greedy when others are fearful," written as the Great Financial Crisis drove high-quality companies to bargain prices. As of October 14, the S&P 500 had produced a total return of 131% since October 2022, and its cyclically adjusted P/E stood at 41.8, well above its historical average and near the dot-com bubble record. Berkshire's cash balance of $359 billion as of June 30 is viewed in the article as a sign of caution. The author advises investors to understand market sentiment but not use it as a predictive tool, noting nothing says the market can't keep rising.
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