
Amid fears of a recession in the U.S., Warren Buffett's investment strategy is being scrutinized for lessons on navigating market volatility. His approach, which emphasizes focusing on business fundamentals and adopting a contrarian stance by buying during downturns, is seen as a guide for investors facing uncertainty due to President Donald Trump's trade policies and market corrections. Berkshire Hathaway, led by Buffett, is reportedly considering selling its real estate brokerage business. This move is speculated to be influenced by the ongoing drama surrounding agent commissions, a year after a significant settlement involving the National Association of Realtors (NAR). Recent movements in Berkshire Hathaway's capital allocation suggest that Buffett was preparing for the current stock market selloff, according to an analyst. This strategic foresight has helped Berkshire Hathaway's stock reach new all-time highs, outperforming the S&P 500 significantly this year. Buffett's investment philosophy continues to influence investors, with his advice on diversification and concentration being shared with students from Emory's Goizueta Business School and UT Austin's McCombs School of Business. He advocates for concentration in investments for those with deep knowledge and confidence, while suggesting broad diversification for others. Buffett has historically allocated up to 40% of his portfolio to American Express, nearly his entire net worth to GEICO, and was willing to put 75% into Treasury bonds during certain market conditions. He maintains a strict limit of no more than a 2% permanent loss on any position, though he has experienced up to 50% quotational losses, and advises against borrowing money to invest. Buffett sees price declines as opportunities to buy more at lower prices, and he and his partner Charlie Munger have typically held most of their portfolio in just five stock positions, with up to 80% in the top five and 25% in the largest single stock.







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