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Berkshire Hathaway’s Investment Strategy Under Scrutiny
Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) has been a net seller of stocks for 11 consecutive quarters while holding a record cash reserve, indicating a cautious approach to current market conditions. Despite advocating for S&P 500 index funds for long-term investors, the company has not made significant purchases in mega-cap stocks during recent market downturns. Currently, 19.9% of the S&P 500 market cap is dominated by Nvidia, Microsoft, and Apple.
Historically, the S&P 500 index has shown resilient growth, adapting over time to reflect the shifting landscape of major U.S. companies. As of 2025, the top eight companies account for 38% of the index, all of which are valued over $1 trillion. Despite continued support for index funds as a means to build wealth, Berkshire’s lack of decisive action during sell-offs raises questions about its future investment strategies.
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