Analysts Questioned Buffett's Bearish Investment Approach. Now He's Lauded for His Bold Investing Moves. 4 Investing Takeaways You Can Learn from the Oracle of Omaha.

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Selena Maranjian, The Motley Fool

Tue, Mar 25, 2025, 6:30 AM 5 min read

You're astir apt astatine slightest somewhat acquainted with Warren Buffett, CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). That's apt owed to his astonishing semipermanent investing record. Consider, for example, that according to his 2024 missive to shareholders, his institution has averaged yearly gains of 19.9% betwixt 1965 and 2024 -- that's 59 years! In total, it's a summation of 5,502,284% -- capable to crook an archetypal concern of, say, $1,000 into adjacent to $45 cardinal dollars. (The S&P 500 index, successful contrast, averaged 10.4% annually during that period.)

Despite each of the admiration for the guy, determination are often articles present and determination questioning his investing moves. These hap astir often during bull markets erstwhile maturation stocks are outperforming Berkshire.

Warren Buffett is seen successful close-up, smiling.

Here's a look astatine however immoderate person questioned Buffett and however -- present -- immoderate are praising his seemingly prescient investing moves. There's a batch we tin larn from Warren Buffett, truthful I'll reappraisal a fewer cardinal tenets to consider.

Even successful the highly esteemed periodical The Economist, you tin find Buffett critics. Last September, for example, an nonfiction successful it noted, "Between 2009 and 2023, Berkshire's yearly instrumentality averaged 13%, compared with 15% for the S&P 500." That is true, and Buffett explained that owed to its size (recently sporting a marketplace worth of $1 trillion), it's not apt to turn arsenic accelerated going guardant arsenic it did successful the past. Still, it bested the S&P 500 successful 2024 -- 25.5% vs 25% -- and successful 2022, shares of Berkshire gained 4% portion the S&P 500 sank by 18%.

In August, Andrew Bary successful Barron's noted, "The Berkshire Hathaway CEO is hunkering down by selling stocks and raising currency for the conglomerate, raising questions astir whether helium is souring connected the outlook for the banal marketplace and economy."

Some whitethorn person seen Buffett arsenic excessively cautious, arsenic the S&P 500 gained 2.28% successful August, followed by 2.02% successful September, earlier dropping 1% successful October and past surging 5.73% successful November. That's short-term thinking, though, and Buffett is celebrated for taking a agelong view. With the S&P 500 down much than 7% implicit the past month, Buffett's moves are looking prescient. He's present sitting connected hundreds of billions of dollars, capable to deploy them to bargain large stocks oregon full companies that are connected sale.

Some questions astir Buffett that I spot arsenic tenable are ones concerning however his institution volition spell connected aft helium moves connected to the banal marketplace successful the sky. Buffett is 94 years old, aft all, and (probably) won't unrecorded forever. Fortunately, Buffett hasn't neglected to acceptable up the institution to thrive successful the future. He has tapped 1 of his talented managers, Greg Abel, to win him successful managing the galore businesses nether Berkshire's extortion and has 2 investing lieutenants, too, to oversee investments.