Warren Buffett's Berkshire Hathaway portfolio has returned an average compound annual 19.7% over six decades, versus 10.5% for the S&P 500, and he has recently warned about a 'gambling mood' in the stock market and high equity prices. The S&P 500's CAPE ratio stands at 40.7, far above its average of 17.4 and exceeded only during the dot-com bubble, when it peaked at 44 in late 1999. In his final meeting as Berkshire CEO in May 2025, Buffett warned that the US fiscal deficit was unsustainable; the article argues the situation has since worsened, with Brent crude up 80% since the start of the year and September inflation at 3.7%, well above the Fed's 2% target. Higher inflation erodes the value of cash and keeps interest rates high, which could be particularly harmful for the AI industry. The article recalls Buffett's 2021 advice to 'never bet against America' and suggests that time in the market usually beats trying to time it.
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| Close on 10/20/2026 | 717.52 |
| Change that session | -0.12% |
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