Berkshire Hathaway surpassed the wonderful 7 since January 2024, and has gained 46.3 %, while the wonderful CNBC 7 index – which tracks Apple, Alphabet, Nvidia, Microsoft, Tesla, Meta and Amazon – only 43.4 % at the same time.
This performance gap has been reported by Chris Veron, head of technical and college research in strategies, which is He said“Believe it or not, it would have been better to buy BRK/B from MAG 7 to start ’24”, referring to Berkshire Hathaway shares from the B.C.
This difference came after the technology group decreased by 13 % until 2025. All of those seven shares decreased in the first quarter of the year. This decrease came as Hathaway continued to climb, as more than 15 % rose in 2025 so far. The performance gap is now more clear because the wonderful struggles 7, and the Hathaway Berkashires reach record levels.
Investors moved from technology with the return of the Trump tariff
The sale in the technology sector has followed the increasing economic concerns in the first months of President Donald Trump’s second term. Investors have withdrawn money from high -growth names, as TROMP tariff policies have created new concerns.
The White House confirmed that the new round of mutual definitions will start on April 2, targeting any country that puts duties on US imports. That created instability through stock markets. Arrows associated with artificial intelligence and global manufacturing have taken the largest number of visits.
Tesla was the worst decrease among the seven, as it decreased by 50 % since December. Microsoft fell 13 % of its highest level. Apple fell 14 % this year. Apple is still one of the best holders of Berkshire Hathaway, but Warren Buffett, now 94 years old, reduced his exposure by two -thirds in 2024. He ended the year with 300 million shares, which is a reduction in Berkshire Hathaway billions of dollars when Apple shares slipped.
The decline in technology was not isolated. “The wonderful 7 shares have decreased more than twice the remainder of the S&P 500, highlighting the risk of chasing the new winners,” said Jason Braid, head of the Investment and Research Strategy at Glenmeede. This decrease led investors to search for stability.
Berkshire Hathaway in this climate is the structure of its defensive business. The company GEICO, one of the largest insurance operations in the country, has hundreds of billions of cash. These qualities appealed to merchants who need a safer place to Park Capital.
Berkshire Hathaway’s Edem Edema gave her the edge
The fourth quarter profits showed the reason for the superiority of Hathaway. Its operational profit, which measures profits from its business, reached $ 14.5 billion, an increase of 71 % on an annual basis. The subscription sector alone achieved 3.4 billion dollars, an increase of 302 % over the same last period. This height in profits gave stocks another boost just as technology shares have begun to decline.
The transformation was not only about profits. He reflected how merchants saw the broader market. Investors now have more than 50 % of their assets in shares, the highest registered shares ever. But they are not betting on the names of growth. They choose strong public budget companies and reliable income.
With the start of the week, futures contracts with Dow Jones Industrial MALED up 233 points or 0.55 %. The S&P 500 Futures increased by 0.67 %, and the future Nasdaq 100 increased by 0.81 %. These gains followed the closure of Friday. Help S&P 500 avoid a four -week loss chain.
Even with those gains, investors are tense. The upcoming definitions on April 2 and the White House speech added to the trade pressure. During the weekend, Trump said there may be “flexibility” in how to apply definitions. But he did not say any specific exemptions that would be granted, similar to his previous talk about excluding some car manufacturers.
Wall Street Magazine I mentioned The definitions may be narrower than expected. An American official told the press that duties could avoid some industry groups. This report helped calm the markets a little, but the uncertainty is still very high.
The bond returns have increased with merchants’ willingness to further fluctuations
The bond market showed how much merchants were warned. After reports of a narrower tariff, the demand for treasury bonds decreased. The treasury returns increased for 10 years, four basis points to 4.29 %. German bond revenues increased for 10 years by three basis points to 2.80 %, breaking five consecutive days of gains. This movement indicated a temporary swing to the origins of the risk after a approximate start of this year.
The return had already decreased earlier in 2025 when the markets were afraid of stagnation due to Trump’s return and renewed the threats of the trade war. The American return has decreased for 10 years from an increase of 4.80 % in January to where it is now standing. But as fears declined a little this week, this return began to put a backup mark.
This week, investors monitor more economic data. On Tuesday, the market will receive a consumer confidence report. On Thursday, they will see the initial unemployment claims. This will appear whether consumer and employment morale will start under Trump’s new economic strategy.
Meanwhile, Federal Reserve Chairman Jerome Powell said last week that the effects of customs duties are likely to be short -term. No hints given that the central bank would respond to changes in interest rates.
Outside the United States, the latest index of the Purchase Manager (PMI) in the euro area showed a small increase in private sector activity. In Germany, production increased at the fastest pace within 10 months, driven in the hope that more government spending will be compensated for any harm from the American customs tariff. However, the result is still lower than analysts’ expectations. This caused disappointment to put early losses.
China also responded to Trump’s moves. On Sunday in Beijing, Prime Minister Lee Qiang addressed foreign business leaders. He said China is ready for “unexpected shocks”, in reference to global trade instability.
“We have preparations for an unexpected shock, which, of course, comes mainly from external sources,” he told me. He added that China will adhere to multilateral and global cooperation, even with increased pressure from Washington. Meanwhile, Berkshire Hathaway and Warren continue to take advantage of this macro background.
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