Buffett’s Berkshire Hathaway Breaks Records with Stellar Performance in Early 2025
When market turbulence strikes, there’s often one name that stands resilient: Warren Buffett. His investment arm, Berkshire Hathaway Inc. (NYSE: BRK), has just recorded its most impressive two-month span relative to the S&P 500 since 2010, showcasing a powerful comeback that investors can learn from.
In February 2025, Berkshire Hathaway soared by an impressive 10.3%, marking its best monthly performance since March 2022. This growth didn’t stop there; March saw an additional 2.5% increase, pushing the conglomerate ahead in a period where the broader market was faltering. In stark contrast, the SPDR S&P 500 ETF Trust (NYSE: SPY) experienced a decline of 1.3% in February and has since plummeted nearly 5% in March.
As a result, Berkshire Hathaway now boasts an outperformance advantage of 20 percentage points over the S&P 500 since February, setting it up for its top two-month stretch against the index in over a decade. Notably, in 2024, Berkshire only marginally outperformed the S&P 500 by a mere 1.8 percentage points, making this recent surge all the more remarkable.
Record Highs Amidst Market Uncertainty
On the trading floor, enthusiasm for Berkshire Hathaway is palpable. Shares of Berkshire hit new record highs, closing recently at $528.73. This surge correlates with Buffett’s staunch investment philosophy, which favors long-term gains over short-term fluctuations. In Berkshire’s latest annual letter to shareholders, the legendary investor reaffirmed his commitment to a patient investment strategy, stating, “We think it highly likely that gains will prevail – why else would we buy these securities?”
Buffett’s approach underscores the importance of understanding your investment horizon. While some traders may be focused on quick wins, his philosophy emphasizes holding assets for the long haul, often spanning decades, enhancing the potential for substantial long-term returns.
Berkshire’s Footprint as a Major Corporate Taxpayer
Buffett also shared insights into Berkshire’s role within the U.S. economy, highlighting its position as a leading corporate taxpayer. In 2024 alone, Berkshire made substantial payments of $26.8 billion to the IRS, representing about 5% of all corporate taxes paid in the United States. This contribution underscores not just the company’s fiscal responsibility, but its influence as a pillar of the economy.
A Closer Look at Berkshire’s Investment Portfolio
According to Berkshire’s latest 13F filing as of December 2024, Apple Inc. (NASDAQ:AAPL) remains the crown jewel of its investment portfolio, comprising a significant 28.1%. Close on its heels, American Express Co. (NYSE:AXP) makes up 16.8%, followed by Bank of America Corp. (NYSE:BAC) at 11.2%. This concentration in a few key investments highlights the strategic selection and confidence Berkshire has in its portfolio companies.
Final Thoughts
The recent stellar performance of Berkshire Hathaway against the backdrop of a declining broader market serves as a potent reminder for today’s investors. Navigating volatile markets requires not only patience and a long-term perspective but also an informed understanding of economic contributions and investment fundamentals.
As you contemplate your next investment move, consider the wisdom of Buffett’s approach: prioritize long-term value and a trusted investment philosophy. Adopting this mindset in your financial strategy could be the difference between simply weathering the storm and thriving in a fluctuating market. At Extreme Investor Network, we aim to empower our readers with insights that help you make smarter investments—not just for today, but for a prosperous future.