Like many on this board, I’m concerned about the evident bubble in US equity markets. Especially the concentration in AI and tech. The S&P 500 is highly concentrated with well over a third of its value in a handful of tech companies. Apple and Alphabet are 12% of the S&P. Given this concentration of risk in a major index, imagine my surprise when I see that those two companies are over a third of Berkshire Hathaway’s equity holdings and around 10% of the total value of Berkshire based on a five groves valuation approach.

I’ve always viewed our Berkshire holdings as the ballast that allows us to weather every financial storm, but the strong correlation I’m seeing between Berkshire and the S&P is starting to concern me. Should the AI/tech bubble burst, it’s likely to take Berkshire with it.

PP