All due to one news. Warren Buffett will step down as CEO at the end of 2025. While this marks the end of an era, it also opens discussions on the company's future under new leadership. 🧠 Assessing the Investment Opportunity Pros: Strong Fundamentals: Berkshire Hathaway boasts a diverse portfolio and substantial cash reserves, providing a solid foundation for future growth. Experienced Successor: Greg Abel, Buffett's chosen successor, has been with the company since 2000 and has overseen significant operations, suggesting a smooth leadership transition . Cons: Leadership Uncertainty: Despite Abel's experience, investors may remain cautious until they observe his performance as CEO. Market Sentiment: The stock's recent decline indicates potential volatility as the market adjusts to th
The Magnificent 7 — Apple, Microsoft, Alphabet (Google), Amazon, Nvidia, Meta (Facebook), and Tesla — have significantly outperformed the broader stock market over the past few years, especially since 2023. Here’s a comparison and some context: 1. Performance vs. S&P 500 These 7 stocks contributed the majority of the S&P 500’s gains in 2023 and early 2024. While the S&P 500 might have risen by around 20% in 2023, without the Magnificent 7, the rest of the index would have returned much less — estimates suggest low single digits or even flat performance. 2. Valuation The group trades at much higher price-to-earnings (P/E) ratios than the average S&P 500 company, reflecting their strong growth potential. Nvidia, for instance, has surged on AI demand and trades at a lofty mult