2025 Sees Investors Enjoying 17% Rise in S&P 500 Amid Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 26 2025
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Source: Fool
- Market Performance: As of 2025, the S&P 500 has risen by 17%, the Dow Jones Industrial Average by 14%, and the Nasdaq Composite by 22%, indicating that despite market volatility, investors are still reaping substantial returns.
- Valuation Warning: The Shiller Price-to-Earnings Ratio indicates that the current stock market is the second priciest in history, prompting investors to be cautious and avoid blindly investing in AI and quantum computing stocks to mitigate potential market crash risks.
- Investment Strategy Adjustment: The author maintains core positions, primarily investing in 35 stocks and one ETF, emphasizing the importance of long-term investing while planning to increase cash reserves to seize investment opportunities during market fluctuations.
- High-Yield Stock Increase: Amid a historically pricey market, the author has increased investments in high-yield stocks, with 50% of the 18 holdings paying dividends, reflecting a focus on stable income to reduce portfolio volatility.
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Analyst Views on BRK.A
Wall Street analysts forecast BRK.A stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRK.A is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 714000.000
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Current: 714000.000
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About BRK.A
Berkshire Hathaway Inc. and its subsidiaries are engaged in diverse business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing. Its segments include Insurance, Burlington Northern Santa Fe (BNSF), Berkshire Hathaway Energy (BHE), Pilot Travel Centers (Pilot), Manufacturing, McLane Company (McLane), and Service and retailing. The Insurance segment includes GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group. The BNSF segment includes the operation of railroad systems in North America. BHE segment offers regulated electric and gas utilities and real estate brokerage activities. Manufacturing segment manufacturers various products, such as industrial, consumer and building products. The McLane segment is engaged in wholesale distribution of groceries and non-food items. The Pilot segment is an operator of travel centers in North America and a marketer of wholesale fuel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Buffett Retires, Abel Takes Over as CEO of Berkshire Hathaway
- Leadership Transition: Warren Buffett officially retired on December 31, 2023, concluding a 60-year tenure as CEO of Berkshire Hathaway, during which the company achieved a compounded annual growth rate of 20%, significantly outperforming the S&P 500's 10%.
- Investment Philosophy Continuation: New CEO Greg Abel has committed to maintaining Buffett's capital allocation and investment strategies, ensuring that the company's future investment decisions will still reflect Buffett's successful principles.
- Shareholder Communication Mechanism: Although Buffett is no longer CEO, he will remain involved as chairman and communicate with investors annually through a Thanksgiving letter, preserving the legacy of his investment wisdom.
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