Investing

David Ryder | Getty Images News | Getty Images

High valuations for artificial intelligence (AI) stocks were the focus of the market this week, with fears of a potential AI bubble capping investor sentiment. But the view on Wall Street is still that several tech stocks offer strong fundamentals and are delivering rapid, AI-induced growth, justifying their sky-high valuations.
The recommendations of top Wall Street analysts can help investors find attractive AI stocks displaying robust long-term growth outlooks.

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.
Amazon
E-commerce and cloud computing giant Amazon (AMZN) recently impressed investors with its upbeat Q3 results. Accelerating growth in the Amazon Web Services (AWS) cloud unit confirmed the Street’s faith in Amazon’s expansion into artificial intelligence.
In reaction to the solid Q3 print and the recently-announced deal with OpenAI, Mizuho analyst Lloyd Walmsley increased his price forecast for Amazon to $315 from $300 and reiterated a buy rating. TipRanks’ AI Analyst is also bullish on AMZN stock, with an “outperform” rating and a price target of $276.
Walmsley said that the Q3 performance, OpenAI deal and positive outlook for Amazon’s Trainium chips made him more optimistic toward AWS’s long-term growth. In fact, the 5-star analyst expects acceleration in AWS revenue growth from 20% in Q3 to 21% in Q4 2025 and 22% in the first quarter of 2026. He expects AWS revenue to rise by 23% to $157 billion in the full year 2026, followed by a 22% increase to $192 billion in 2027 — above the Street’s expectations of $154 billion and $185 billion for 2026 and 2027, respectively.
“We believe investors continue to rotate into AMZN shares given a valuation well below its historic ranges and positive news likely to continue into the AWS ReInvent Conference in early December,” said Walmsley.

The analyst’s bullish investment thesis is also based on the cost-to-serve improvements in Amazon’s retail business, driven by automation in fulfillment centers and an enhanced logistics network.
Walmsley ranks No. 103 among more than 10,100 analysts tracked by TipRanks. His ratings have been successful 64% of the time, delivering an average return of 27.5%. See Amazon Insider Trading Activity on TipRanks.
Alphabet
This second stock pick is Google- and YouTube owner Alphabet (GOOGL). The company reported better-than-expected third-quarter results, with AI driving solid momentum in its cloud business.
Impressed by the Q3 performance, JPMorgan analyst Doug Anmuth raised his price target for Alphabet to $340 from $300 and reaffirmed a buy rating. In comparison, TipRanks’ AI Analyst has a price target of $316 with an “outperform” rating on GOOGL.
Anmuth highlighted that Q3 marked the first time that Alphabet’s quarterly revenue crossed the $100 billion mark. The top-rated analyst noted Alphabet’s robust performance in the third quarter, with double-digit growth across every major business.
Interestingly, Anmuth believes that Q3 results and favorable insights on AI search formats could change investors’ views toward Google’s AI search transition. Alphabet noted AI-induced acceleration in query growth and paid clicks, while Anmuth noted that industry conversations indicate that paid clicks using Google’s AI Overviews (AIO) and AI Mode (AIM) features are driving higher conversion rates.
“Overall, the AI search transition has been viewed as the greatest risk to Google, but additional signs that AI search is more opportunity than threat will continue to flip the narrative,” said Anmuth.
The analyst is also encouraged by the surge in Google Cloud’s backlog to $155 billion. He contends that the figure doesn’t include all the gains from the recently announced expansion of GOOGL’s partnership with Anthropic, implying a further increase in the backlog at the end of the fourth quarter. Overall, Anmuth is confident about Alphabet’s prospects and said it remains JPMorgan’s Top 2 idea, behind only Amazon.
Anmuth ranks No. 113 among more than 10,100 analysts tracked by TipRanks. His ratings have been profitable 63% of the time, delivering an average return of 22%. See Alphabet Ownership Structure on TipRanks.
Advanced Micro Devices
The third tech giant this week is chipmaker Advanced Micro Devices (AMD), which delivered strong results in the third quarter of Fiscal 2025. AMD attributed stronger earnings and revenue to its expanding compute business and fast-growing AI data center segment.
In reaction, Stifel analyst Ruben Roy increased his price target for AMD to $280 from $240 and reiterated a buy rating. With a price target of $285, TipRanks’ AI Analyst has an “outperform” rating on AMD stock.
Roy noted that AMD’s Q3 top line was driven by strength across the company’s data center, AI, server and PC businesses. The 5-star analyst highlighted management’s optimism toward continued momentum in Q4 FY25, with revenue expected to grow 25% year-over-year to $9.6 billion. AMD expects Q4 revenue growth will be supported by strong performances in its data center, client and embedded businesses, partially offset by a double-digit decline in the gaming segment.
Interestingly, Roy believes that AMD’s performance in the near-term is being fueled more by increasing demand for server central processing units and continued share gains in client CPUs rather than data center AI graphics processing units. The analyst expects AMD’s data center AI GPU business to increase to a range of $6 billion to $6.5 billion in FY25, versus a prior estimate of $5 billion.
“Looking ahead, we continue to believe that AMD is executing well as the company nears production shipments of the MI400/450 series GPUs and the Helios rack next year,” Roy said.
The analyst is also optimistic on AMD’s recently-announced deals with OpenAI and Oracle Cloud Infrastructure, saying they provide clarity on the longer-term growth outlook in its data center AI business. Roy awaits further insights from AMD about its technology roadmap and total addressable market (TAM) at an upcoming Analyst Day event on November 11.
Roy ranks No. 20 among more than 10,100 analysts tracked by TipRanks. His ratings have been profitable 71% of the time, delivering an average return of 34.4%. See AMD Statistics on TipRanks. More

Roughly 92% of enrollees in Affordable Care Act marketplace health insurance plans, about 22 million people, receive enhanced premium subsidies.
The average recipient will see premiums more than double in 2026 if Congress doesn’t extend the enhanced subsidies.
The issue is at the epicenter of the federal government shutdown, now the longest in U.S. history.
About 1 in 10 ACA enrollees would lose a premium tax credit altogether. Households are worried about shouldering those costs.

Members of the National Guard patrol near the U.S. Capitol on Oct. 1, 2025 in Washington, DC.
Al Drago | Getty Images

Millions of Americans are bracing for a sharp increase in their health insurance premiums next year as expiring enhanced subsidies trigger a “cliff” on aid — and they are worried about the financial stress tied to those extra costs.
Ashley Thompson of Austin, Texas, said she and her husband are weighing whether to drop their health coverage next year and insure only their two children to make the financials work.

Premiums for the family’s current health plan on the Affordable Care Act marketplace could triple, to about $3,553 a month in 2026 from $1,200 this year, without the enhanced federal subsidies set to expire at year’s end, based on marketplace estimates.
That expense, almost $43,000 a year, would account for roughly a third or more of their household income — and that’s before even using the insurance, said Thompson, 49, who is a ceramic artist and physical trainer.
“Quite frankly, it’s terrifying,” she said.

Health premiums poised to double — or more

Thompson and her family are among the 22 million Americans who receive enhanced subsidies that make health premiums cheaper. Overall, that group accounts for 92% of the 24 million people enrolled in an ACA marketplace plan.
The enhanced premium subsidies are at the epicenter of the political fight around the federal government shutdown, now the longest in U.S. history.

Democrats are pushing to extend the subsidies as part of a deal to reopen the government, while Republicans have said they want to negotiate the subsidies separately.
Senate Majority Leader Chuck Schumer on Friday proposed a one-year extension of the existing enhanced subsidies as part of a deal to reopen the government. The deal would also establish a bipartisan committee to continue negotiations on long-term reforms to address the issue of health-care affordability.

More than half, 57%, of ACA marketplace enrollees live in Republican congressional districts, according to a recent KFF analysis. This year, about 80% of all premium tax credits, or $115 billion, went to ACA marketplace enrollees in states won by President Trump in last year’s election, KFF found.
Political pundits have cited affordability as a key issue that drove Democrats like New York City Mayor-elect Zohran Mamdani to victories in Tuesday’s elections.
Without enhanced subsidies, the average recipient’s annual insurance premium will jump 114%, to $1,904 in 2026 from $888 in 2025, according to KFF, a nonpartisan health policy research group.
“On average, to keep their same plan, people getting a subsidy now will see their premium payments double next year,” said Cynthia Cox, vice president and director of KFF’s program on the Affordable Care Act.

Read more CNBC personal finance coverage

Some, like Americans whose incomes exceed a certain threshold, will pay much more. They’d be ineligible for any premium assistance due to the so-called “subsidy cliff.”
Take a 60-year-old couple earning $85,000 a year, for example, which is just over the threshold: Their annual premiums would rise by almost $23,000 in 2026, on average, according to KFF.

The impact of losing enhanced premium subsidies

The political fight around enhanced subsidies, which were enacted in 2021 under the Biden administration, is playing out during the ACA marketplace’s open enrollment, when would-be enrollees are picking their health plans for 2026.
They must do so by Dec. 15 to be covered at the start of the new year.
“Open enrollment is already starting with this big question mark,” Cox said.

U.S. House Minority Leader Rep. Hakeem Jeffries (D-NY) speaks on the current government shutdown during a news conference at the U.S. Capitol on Oct. 6, 2025 in Washington, DC.
Alex Wong | Getty Images

Swelling health insurance premiums will likely have many consequences for households, according to health policy experts.
The Congressional Budget Office estimates about 4 million more people will join the ranks of the uninsured over the next decade if the enhanced subsidies disappear.
That likely wouldn’t happen immediately, Cox said. More than a million may drop coverage next year if they decide insurance premiums are unaffordable, she said.
Others may opt to buy lower-tier plans with smaller upfront premiums, she said. Those plans typically have much higher deductibles, meaning households would be on the hook for a hefty bill if they need to use their insurance, Cox said.
In later years, some of these enrollees would likely drop their coverage, too, if they grow weary of the system and higher costs, Cox said.

The healthcare.gov website on a laptop arranged in Norfolk, Virginia, US, on Saturday, Nov. 1, 2025.
Stefani Reynolds | Bloomberg | Getty Images

Other enrollees, like Beth Keenan, say they intend to keep their current health plan and absorb the higher costs by cutting other expenses.
Keenan, 62, an early retiree who lives in Pittsburgh, is using her ACA marketplace insurance plan as a bridge to Medicare benefits at age 65.
She pays $589 a month in premiums, after accounting for a $302 monthly federal subsidy, also known as a premium tax credit. If the enhanced subsidies expire, Keenan’s estimated net premium would jump to $1,065, up 81%, based on estimates from the state marketplace.
Keenan’s annual pension and Social Security income, totaling about $80,000, would be too high to qualify for aid.
“You get tax credits for private airplanes,” said Keenan, who retired at 60 from her job as a county court administrator, a post she held for three decades. “Why shouldn’t I get a tax break?”

US Senate Majority Leader John Thune, Republican of South Dakota, speaks to reporters on day 37 of the government shutdown, at the US Capitol in Washington, DC, November 6, 2025.
Saul Loeb | Afp | Getty Images

Keenan expects the extra $500 or so per month won’t cause financial hardship, she said. But the sum will likely force her to pull back on certain lifestyle expenses like travel, she said.
The uncertainty around the availability of subsidies into the future is unnerving, especially knowing that insurers might raise premiums again for 2027, she said.
Insurers raised premiums an estimated 26% for 2026, on average, for example, according to KFF, exacerbating the loss of enhanced subsidies.
“I know what I’m doing [for] next year, but I have one year after that” before Medicare benefits start, Keenan said. “Are premiums going up [another] 20%? And then where else do you get insurance?”

Subsidy cliff is ‘an unfortunate disincentive to work’

While certain enrollees would still qualify for a lesser tax credit if the enhanced subsidies disappear, those with incomes above 400% of the federal poverty level would no longer qualify for assistance.
This is the so-called “subsidy cliff.”
That threshold varies by household size. It’s $62,600 for a one-person household and $128,600 for a four-person household in 2026, for example.
Since 2021, the enhanced subsidies have been available to households that earn more than that. Annual premiums were also capped at 8.5% of household income.

If the enhanced subsidies expire, that income cap would disappear, and those who earn even $1 above the 400% poverty line would be ineligible for premium tax credits. This would impact about 1 in 10 enrollees in an ACA marketplace plan, according to KFF.
Matthew Espinoza, 46, is right on the cusp of that income threshold.
The San Francisco resident, who works as a fitness instructor and restaurant server, expects his income to be roughly $60,000 to $65,000 next year, depending on how many hours he works.
Where his income ultimately falls would make a big financial difference if the enhanced subsidies disappear, said Espinoza, who is also a full-time nursing student.

The healthcare.gov website on a laptop arranged in Norfolk, Virginia, US, on Saturday, Nov. 1, 2025.
Stefani Reynolds | Bloomberg | Getty Images

He pays $324 a month for subsidized ACA insurance premiums this year.
Those subsidized premiums would rise to about $461 per month in 2026 if his annual income is $60,000, according to estimates through Covered California, the state marketplace. However, that premium would jump to $818 a month with a $65,000 income, since he’d no longer qualify for assistance.
“I haven’t had to cut down on savings when I started school, but that’d probably be the first thing that took a major hit” if forced to pay the $818 premium, Espinoza said.
Espinoza said he’d be hyper-aware of his income in 2026 and, if it flirts with the 400% poverty threshold, he may try to limit his work hours to ensure eligibility for a premium tax credit.
The subsidy cliff “is an unfortunate disincentive to work,” said KFF’s Cox. “For some families, it totally makes financial sense, especially if they really need the health insurance.”

Open enrollment is already starting with this big question mark.

Cynthia Cox
vice president and director of KFF’s program on the Affordable Care Act

Thompson, the Austin resident, doesn’t want to drop her health coverage.
But even lower-tier plans with high deductibles available on the ACA marketplace would still cost at least $3,000 a month for her family of four, she said, based on estimates via the marketplace.
“We are not broke, but this would put us in that position,” she said. “It’s not the only bill.”
They’re also looking into various options, such as insuring only their two children and using a cooperative health share for Thompson and her husband, she said. (Such services aren’t technically health insurance, and may come with various risks.)
“People think it’s people who are undeserving that get subsidies,” Thompson said. “But it’s just neighbors, regular people.” More

Monro Auto Service in Derby, CT.
Source: Google Earth

Company: Monro (MNRO)
Business: Monro, formerly Monro Muffler Brake, is engaged in the provision of automotive undercar repair and tire services in the United States. The company provides a range of services on passenger cars, light trucks and vans for brakes; mufflers and exhaust systems, and steering, drive train, suspension and wheel alignment. It also offers tires and routine maintenance services, which include state inspections. It offers repair and replacement of parts. Its stores provide a range of undercar repair services for brakes, steering, mufflers and exhaust systems, suspension and wheel alignment, as well as tire replacement and service. It also offers scheduled maintenance services in its stores where services are packaged and offered to consumers based upon the year, make, model and mileage of each specific vehicle. Its maintenance services include oil change services, heating and cooling system flush and fill service, fuel system service and a transmission flush and fill service.
Stock Market Value: $458.40 million ($15.27 per share)

Stock chart icon

Monro shares year to date

Activist: Carl Icahn

Ownership: 14.79%
Average Cost: $19.08
Activist Commentary: Carl Icahn is the grandfather of shareholder activism and a true pioneer of the strategy. He is very passionate about shareholder rights and good corporate governance and will go to extreme lengths to fight incompetent boards and over compensated managers. Icahn has invested across all sectors over his more than six-decade long career and has a long history in the automotive parts and services industry. He has been involved in several mergers and acquisitions in this space, acquiring some of his portfolio companies through Icahn Automotive, the automotive-segment business of his conglomerate, Icahn Enterprises. This includes his acquisition of Pep Boys-Manny Moe and Jack in 2016 and Federal Mogul in 2017.
What’s happening
On Nov. 5, Carl Icahn filed a 13D with the U.S. Securities and Exchange Commission, disclosing a 14.79% position in Monro.
Behind the scenes
Monro is engaged in the provision of automotive undercar repair and tire services in the United States, operating more than 1,100 repair shops and tire dealers in 32 states under multiple regional brands. The company has faced several challenges in recent years. Macro factors like lower consumer demand, higher material and labor costs, and a trend in consumer trade-down to lower margin tire products have applied significant margin and growth pressure. As a result, following a 4.9% decrease in sales for fiscal year 2025 — the second year in a row with a meaningful decline in revenue — the company announced that they are closing approximately 145 underperforming locations.

Most recently, the company’s third-quarter earnings report left a lot of investors disappointed about its strategic transition, with weaker-than-expected revenue and no specific financial guidance for the upcoming fiscal year. Shares fell 16.7% the next day. Lastly, many investors have questioned the company’s dividend payout ratio, which has remained relatively large despite these ongoing struggles.
Putting all this together, it comes as little surprise that shares have underperformed, down 44.73%, 66.73% and 63.25% over the past 1-, 3- and 5-year periods, respectively, prior to Icahn’s announcement.
Perhaps this depressed valuation is what caught the eye of Carl Icahn. He disclosed a 14.79% position in the company (67% of which was acquired since the stock’s Oct. 29 downturn), immediately sending the stock up over 15%.
While there are plenty of cheap stocks, this isn’t Icahn taking a flyer on the automotive industry. Icahn has a rich history in the automotive parts and services industry, most notably Icahn Automotive, the automotive segment of his conglomerate, Icahn Enterprises. Icahn knows this industry well and likely sees Monro as a great business that is significantly undervalued.
The timing of this public engagement is also very notable. It is not just the stock’s recent fall that makes this a good entry point for an investor like Icahn. Monro recently agreed to collapse its dual class share structure, which had previously granted its sole Class C shareholder, Peter Solomon, veto power over any matter brought to a shareholder vote, effectively making this a controlled company. Pursuant to its approval in 2023, this collapse will occur prior to the 2026 annual meeting, which is expected to take place next August.
So, what does this mean for the company’s shareholders? It effectively sets the stage for the company being converted from a privately run company to a publicly run company for the benefit of its shareholders. With one person having veto power over all material board decisions, the rest of the board becomes somewhat irrelevant. With this conversion, the company has an opportunity to have a real, collaborative, and productive board. This would require its reconstitution, and we know of nobody better or more experienced than Icahn for that endeavor.
Solomon is an 87-year-old renowned investment banker and Icahn is, well, Icahn and a contemporary of Solomon. However, there is no evidence that the two have ever crossed paths.
Despite this, we would imagine that they have many relationships in common and mutual respect for each other. While there are many different ways this campaign can go down, what we would like to see is the two elder statesmen meeting in a room with an air of civility and cordiality uncommon in the average activist engagement and together coming up with a board that will oversee management, hold them accountable on behalf of shareholders and usher the company through its first real phase as a truly public company. With Solomon already agreeing to give up control, and neither Solomon nor Icahn likely to be on the continuing board, there is no reason why this should get contentious.
However, we also must address the elephant in the room. Icahn has built his automotive industry on acquisitions, and Monro appears to fit in very nicely in IEP’s automotive business.
Icahn has launched activist campaigns at some of the auto companies that he later went on to acquire, including Pep Boys-Manny Moe and Jack in 2016 and Federal Mogul in 2017. When Icahn acquired Pep Boys he also stated: “We believe that with our abundant resources and knowledge of the industry we will be able to grow this business and take advantage of consolidation opportunities, thereby benefiting customers, manufacturing partners and employees, as well as our shareholders.”
While we sincerely believe that Icahn’s main motivation for this investment is to invest in a good company that he believes is at an inflection point and is significantly undervalued, there is always the chance that he might want to own the entire company one day. This is a very small position for him and a good return would not move the needle as much as a synergistic integration into his automative business, but we see no reason why both things cannot be true.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist investments. More

Buffett Watch

Berkshire Hathaway Portfolio Tracker

(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)

Berkshire’s stock gains as AI worries depress Wall Street

Arrows pointing outwards

The upturn for Berkshire shares has cut its underperformance versus the benchmark S&P 500 to 4.3 percentage points from 12.2 percentage points on October 29.

Arrows pointing outwards

Operating profits for Berkshire’s wholly owned companies were up 34% to almost $13.5 billion in the third quarter, with a 200% increase for insurance underwriting income.
There were again no stock buybacks, a sign Buffett does not think Berkshire shares are significantly undervalued despite their weakness since May.
With no money spent on buying back Berkshire shares and equity sales outpacing purchases, the company’s September 30 cash hit $381.7 billion, up 10.9% since the end of June.

If you subtract BNSF’s cash and account for the timing of some Treasury bill purchases, the total is $354.3 billion, up 4.3% from June.

Buffett’s farewell message?

Warren Buffett may be delivering his final message as Berkshire’s CEO next Monday.
This week the company confirmed in a news release what it told the Wall Street Journal last week.
“On Monday, November 10th, Berkshire will be issuing a press release which will contain a message from Mr. Buffett regarding philanthropy, Berkshire and other matters that Berkshire shareholders and others may find to be of interest.”

Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC

The philanthropy part will probably be connected to his annual Thanksgiving contributions to family foundations.
The “Berkshire and other matters” portion could be something of a farewell message as he prepares to step down as CEO at the end of the year.
While he will remain chairman of the board, he will not be on stage at next May’s meeting and new CEO Greg Abel will be writing the annual letter to shareholders.
Since he appears to be intentionally limiting his future opportunities to speak to shareholders and the rest of the world, Buffett may be ready to have his final say now.

10-Q clues point to more sales of Apple and Bank of America

We won’t know for sure until next Friday’s release of Berkshire’s Q3 equity portfolio snapshot, but it looks like there were more sales of Apple shares during the three months ending September 30.
CNBC.com’s Yun Li notes Berkshire’s 10-Q last Saturday reported a $1.2 billion decline in its cost basis for consumer product stocks, which would include Apple.
She also points out that Apple’s 24% gain during the quarter would have provided an opportunity for Buffett to lock in more profits.
Apple remains Berkshire’s largest equity holding, currently valued at $75.2 billion, but it has cut the position by 69% over the past two years.

Arrows pointing outwards

Barron’s divides that $1.2 billion cost basis drop by $35, Apple’s per-share basis, to estimate Berkshire may have sold 35 million shares for around $8 billion, based on Apple’s average price of $230 per share during the quarter.

Arrows pointing outwards

With Apple reporting in its 10-Q that it had $12.4 billion in Q3 equity sales, Barron’s suggests a lot of the remaining $4.4 billion may be Bank of America sales, another big position that Berkshire has been sharply reducing.
That stake has been cut by around 40% since the beginning of last year.
At $32.2 billion, it is Berkshire’s third largest equity holding.

Borrowing more yen is expected to fuel more buying in Japan

Arrows pointing outwards

All five of the stocks are at or near all-time highs.
The combined value of Berkshire’s reported holdings is approaching $33 billion, up from $31 billion just one month ago.
The figure could be even higher assuming some of Berkshire’s continued buying has not yet been publicly revealed.

Arrows pointing outwards

‘It’s not me’

Berkshire Hathaway has a new warning about YouTube videos with “images or AI created images impersonating” Warren Buffett.
A news release Thursday said, “Generally, such video images of Mr. Buffett may appear to look like him but the sound of the impersonator speaking in a very flat monotone voice is clearly not the voice of Mr. Buffett.”
It added, “Mr. Buffett is concerned that these types of fraudulent videos are becoming a spreading virus. Individuals who are less familiar with Mr. Buffett may believe these videos are real and be misled by the contents of these videos.”
In April, a Berkshire release cited unspecified “reports currently circulating on social media” about “comments allegedly made” by Buffett and said, “All such reports are false.”
Buffett also warned shareholders at the 2024 Berkshire annual meeting that AI’s ability to create fake audio and video could make scamming “the growth industry of all time.”

BUFFETT AROUND THE INTERNET

Some links may require a subscription:

HIGHLIGHTS FROM THE ARCHIVE
In investing, you can’t be scared when others are scared (2010)

Warren Buffett explains why investors should look at their stocks the same way they would look at owning a farm or an apartment.

WARREN BUFFETT: If you have a temperament that when others are fearful, you’re going to get scared yourself, you know, you are not going to make a lot of money in securities over time, in all probability.
You know, people really — if they didn’t look at quotations — but of course, the whole world is urging them to look at quotations, and more than that, do something based on small changes in quotations.
But think how much more rational — we’ve talked about it before — but think how much more rational investing in a farm is than the way many people buy stocks.
If you buy a farm, do you get a quote next week, do you get a quote next month? If you buy an apartment house, do you get a quote next week or month?
No, you look at the apartment house or the farm, and you say, “I expect it to produce so many bushels of soybeans and corn, and if it does that, it meets my expectations.”
If they buy a stock and they think if it goes up it’s wonderful, and if it goes down it’s bad.
We think just the opposite. When it goes down, we love it, because we’ll buy more. And if it goes up, it kills us to buy more.
And I — you know — all kinds — you know, Ben Graham wrote about it. It’s been explained. But if you can’t get yourself in that mental attitude, you’re going to be scared whenever everybody else is scared.
And to expect somebody else to tell you when to buy and therefore get your courage back up or something, you know —
I could get this fellow’s courage up substantially by saying this is a wonderful time to buy, and then a week from now he’d run into somebody else that tells him the world is coming to an end and he’d sell.
I mean, he’s a broker’s friend, but he’s not going to make a lot of money.

BERKSHIRE STOCK WATCH

Four weeks

Arrows pointing outwards

Twelve months

Arrows pointing outwards

BERKSHIRE’S TOP STOCK HOLDINGS – Nov. 7, 2025

Arrows pointing outwards

Berkshire’s top holdings of disclosed publicly traded stocks in the U.S., Japan, and Hong Kong, by market value, based on today’s closing prices.
Holdings are as of June 30, 2025 as reported in Berkshire Hathaway’s 13F filing on August 14, 2025, except for:

The full list of holdings and current market values is available from CNBC.com’s Berkshire Hathaway Portfolio Tracker.

QUESTIONS OR COMMENTS

Please send any questions or comments about the newsletter to me at [email protected]. (Sorry, but we don’t forward questions or comments to Buffett himself.)
If you aren’t already subscribed to this newsletter, you can sign up here.
Also, Buffett’s annual letters to shareholders are highly recommended reading. There are collected here on Berkshire’s website.
— Alex Crippen, Editor, Warren Buffett Watch More

MP Materials CEO James Litinsky cautioned investors to approach other rare earth projects with caution as the market speculates about future government deals.
The Defense Department struck a landmark agreement with MP in July that includes an equity stake, price floor, and offtake agreement.
“The vast majority of projects being promoted today simply will not work at virtually any price,” Litinksy said on MP’s earnings call.

Pentagon-backed MP Materials warned investors this week to approach other rare earths projects with caution, pointing to the industry’s difficult economics.
Stocks of U.S. rare earth companies have had wild swings in recent months as investors have speculated that the Trump administration might strike more deals along the lines of its landmark agreement with MP. Smaller retail traders have gotten involved in the stocks with the VanEck Rare Earth and Strategic Metals ETF up 60% this year.The Defense Department in July took an equity stake in MP, set a price floor for the company, and inked an offtake agreement with the rare earth miner and magnet maker in an effort to roll back China’s dominance of the industry.

CEO James Litinsky said he didn’t want “people to get burned” amid the speculation. Litinsky cautioned investors “to just be very clear-eyed about what the actual structural economics are amidst all the excitement.”
“The vast majority of projects being promoted today simply will not work at virtually any price,” Litinksy said on the company’s third-quarter earnings call Thursday evening.

Stock chart icon

VanEck Rare Earth and Strategic Metals ETF, YTD

MP views itself as “America’s national champion,” Litinsky said. MP is the only active rare earth miner in the U.S. and has offtake agreements with Apple and General Motors in addition to the Pentagon.
“We have structural advantage because we’re fully vertically integrated,” the CEO said. “We’re years and billions ahead of others.”
It takes years for the best rare earth producers to ramp up and stabilize their output and economics “despite what some promoters might suggest,” Litinksy said. Australia’s Lynas took about a decade and MP will reach normalized production in about three years from the start of commissioning, he said.

The White House is “not ruling out other deals with equity stakes or price floors as we did with MP Materials, but that doesn’t mean every initiative we take would be in the shape of the MP deal,” a Trump administration official told CNBC in September.
Litinsky described the rare earth industry as close to a “structural oligopoly,” a system where there are just a few major players. The government investing in a dozens of sites and businesses wouldn’t necessarily set up a supply chain, he said.
The Trump administration should continue to encourage private capital to flow into the industry through loans, grants and other support, Litinsky said. There is room for “a lot of other players and supply” but the market will require “materially higher prices” for the industry’s structural challenges to change, he said.
“If X dollars of capital can stimulate two or three X in private capital, they should be doing that as much as possible,” Litinsky said.
The CEO indicated that he views MP as a forerunner that will help create the conditions for a broader market that is not dependent on China over time.
“In the very short term the administration has made sure that we have a successful national champion in MP,” Litinsky said. “We are going to sort of pave the path if you will to then figure out how there’s much broader supply coming online.”
Rare earths are crucial for making magnets that are key inputs in U.S. weapons platforms, semiconductor manufacturing, electric vehicles, clean energy technology and consumer electronics. Beijing dominates the global supply chain and the U.S. is dependent on China for imports. More

Sales of registered index-linked annuities jumped to $20.6 billion in the third quarter, up 20% from a year earlier, according to research.
These annuities provide retirement savers with some protection against losses while still providing exposure to the stock market.
There are variations in the specifics of RILAs, but the general idea is that their performance is tied to an index or indexes.

Fg Trade | E+ | Getty Images

Investors who want to benefit from stock market gains but limit the impact of its losses are increasingly turning to registered index-linked annuities.
Like other annuities, RILAs are insurance contracts that involve handing over money in exchange for a payout, often at a later date. As the name suggests, a RILA’s performance is based on a stock market index (or multiple indexes). They come with limits on both the loss and growth sides.

“It’s like putting bumpers in a bowling lane — you’re limited on both sides,” said certified financial planner Jessica McNamee, founder and wealth management advisor for Sirius Wealth Strategies in Bellefontaine, Ohio.
Sales of RILAs reached an estimated $20.6 billion in the third quarter, a 20% jump from the same period in 2024, according to recent research from LIMRA, an insurance and financial services trade group.
This year through Sept. 30, sales were 18% higher than the same time last year, at $57.3 billion. LIMRA expects sales to exceed $80 billion in both 2026 and 2027, said Keith Golembiewski, assistant vice president and head of LIMRA annuity research.
“With a growing number of income solutions and downside protection features … RILAs have become more appealing to a wider range of clients,” Golembiewski said.

More from Fixed Income Strategies:

Stories for investors who are retired or are approaching retirement, and are interested in creating and managing a steady stream of income:

The growth comes as the stock market has continued its upward climb over the last several years, with the major stock indexes posting double-digit yearly gains. The S&P 500 index, for instance, has climbed more than 85% since mid-October 2022. Some financial advisors are recommending that investors rebalance their portfolios and evaluate their risk tolerance in case there’s a market correction or worse.

“We are later in a bull run cycle,” McNamee said. “As time goes on, the potential gain from this bull market is diminished and the potential risk of a prolonged market dip is increased. I think clients are thinking, ‘How long can this [bull run] continue?'”
At the same time, investors who are still accumulating their retirement savings need exposure to the market if they want returns that beat inflation — and a RILA can help with that.
But they aren’t without risk. Here’s what to know before you buy.

Caps blunt market gains, too

Remember that those bumpers don’t just affect losses: “Your losses are limited to some extent and the gains are limited to some extent,” McNamee said.
While the specifics vary among RILAs, here’s an example: Say a RILA is based on the S&P 500 index and comes with a 15% downside limit and a 15% upside cap. If the S&P drops 8%, you won’t incur the loss. But if it slides by 19%, you’d see a 4% loss (the amount greater than the 15% loss limit).
On the gain side in that situation, if the market jumps by 20%, you’ll only see a 15% gain.

Using multiple indexes can help diversify holdings

You can choose the length of the RILA contract — say, one, three or six years. There are also variations in the specifics of your loss limit and gain caps — both are generally larger the longer the contract — as well as the market index or indexes you choose to base your contract on.
Using more than one index in your RILA can help diversify your money. For instance, say you allotted 70% to the S&P index and the other 30% to a broad-based international index, McNamee said.
“If U.S. stocks go down but the rest of the world’s stocks are fine, that [index mix] helps to mitigate potential losses because we’re diversifying,” she said.

One appealing aspect of RILAs is that they generally come with no fees. There’s no upfront sales charge when you enter the contract, nor are there investment fees — because even though your returns are based on the performance of an index, you don’t own the index, McNamee said. 

Even with downside protection, review risk tolerance

These annuities are not without risk. 
For instance, McNamee said, a RILA that covers up to 25% on the downside may seem generous, but history shows it can be worse: In the Great Recession, from late 2007 to early 2009, the S&P lost more than 50%.
“I remind clients that we could experience that again,” McNamee said. “It is possible for the index to fall more than that and you could lose money.”
In other words, it’s important to consider your risk profile before buying a RILA, she said.
“The client needs to analyze whether or not the allocation to an index is appropriate for their risk tolerance, even with the downside protection,” McNamee said.

Accessing money early can be expensive

Additionally, it’s important to remember that you are generally locking up your money for the duration of the RILA. If you withdraw money from the annuity before the contract ends, you may pay what’s called a surrender charge.
Some RILAs let you withdraw up to a certain amount yearly (say 10%) but will apply that surrender charge to any withdrawals beyond that limit, McNamee said. Those charges generally start out higher at the beginning of the contract (say, 8% of whatever you take out) and gradually get lower over the course of the RILA.

Beyond that lack of liquidity, it’s important to remember that RILAs, like other annuities, are subject to the same age-related withdrawal limitations as other retirement savings.
“The biggest mistake I see people make with annuities is they don’t realize that even if it’s funded with non-IRA money, it is still a retirement account,” McNamee said. 
So if you take money out before age 59½, you may be subject to a 10% early withdrawal tax penalty from the Internal Revenue Service. More

ETF Strategist

ETF Street
ETF Strategist

After a strong year for the stock market, many mutual funds are expecting double-digit year-end capital gains payouts for 2025, according to Morningstar.
That could trigger unexpected taxes for investors with mutual funds in taxable brokerage accounts.
One solution could be swapping those assets for exchange-traded funds, or ETFs, but there are some key things to consider, experts say.

Violetastoimenova | E+ | Getty Images

LAS VEGAS — As 2025 winds down, many investors are bracing for year-end mutual fund distributions, which can trigger a hefty tax bill for assets held in a taxable brokerage account. But there are strategies to avoid the payout, experts say.   
For 2025, “you’ve got some pretty eye-watering numbers,” with some funds planning to distribute double-digit capital gains, said Brandon Clark, director of exchange-traded funds for asset management firm Federated Hermes. 

After another strong year for the stock market, more than 10 mutual funds are estimating payouts of at least 25%, with most distributions expected to come around late November through year-end, according to a Morningstar report published on Monday.
If you own these mutual funds in a brokerage account, you could pay taxes on the capital gains payouts, even when you reinvest the proceeds. Those reinvested gains lower your “basis,” or the asset’s original purchase price, which can help reduce future profits.
Still, “the ETF solves a lot of those [yearly tax] problems,” said Clark, speaking at the Financial Planning Association’s annual conference on Tuesday.

More from ETF Strategist:

Here’s a look at other stories offering insight on ETFs for investors.

ETFs are generally more tax-friendly than mutual funds because of a “tax loophole” that exists for ETFs, Clark said. 
Fund managers can make “in-kind” trades and redemptions, which are generally tax-free. As a result, most ETFs don’t have year-end capital gains distributions.    

However, if you’re planning to swap your mutual funds for ETFs, there are some key things to know, experts say. 

‘Do a quick comparison’ of possible gains

One of the challenges of trading mutual funds for ETFs is that many investors are sitting on significant gains, experts say. 
You should “do a quick comparison” of the possible gain from selling profitable mutual funds vs. the year-end payout, said certified financial planner Karen Van Voorhis, director of financial planning at Daniel J. Galli & Associates in Norwell, Massachusetts.
If you sold, you would only incur the gains from mutual funds once vs. yearly payouts, she said. The upfront gain could be worthwhile to “permanently flip to ETFs.”

Know the mutual fund’s ‘record date’

If you’re planning to sell mutual funds to avoid a year-end payout for 2025, “timing matters,” according to CFP Tom Geoghegan, founder of Beacon Hill Private Wealth in Summit, New Jersey.
“For mutual funds, you must sell before the record date to avoid receiving the distribution,” he said. If you own the fund on the “record date” or “date of record,” you will still receive the payout, even if you sell after.
When trading mutual funds for ETFs, you should make sure the new asset “aligns with your investment strategy” without adding unintended risk. More

Collectively, Americans owe $1.23 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.
However, despite the overall uptick, there is a growing divide among consumers, other reports show.
Some borrowers are in financial distress, while others are strengthening their financial position, largely by benefiting from stock market rallies and rising home values.

Americans are falling deeper into debt, but not across the board.
Collectively, credit card balances rose by $24 billion in the third quarter to $1.23 trillion — up 5.75% from a year earlier to a fresh all-time high, according to a new report on household debt by the Federal Reserve Bank of New York released Wednesday.

The average credit card balance per consumer now stands at $6,523, up 2.2% year over year, a separate quarterly credit industry insights report from TransUnion also found.
However, despite the overall uptick, there is a growing divide among consumers, TransUnion found. “Some demonstrate heightened financial resilience while others face mounting challenges,” the report said.

Read more CNBC personal finance coverage

Rising household debt balances point to worsening ‘K-shaped’ economic divide
2.8% Social Security COLA for 2026 prompts calls for change to annual increases
Now is a good time to rebalance, after years of market gains: top advisor
Donations to hunger relief charities surge amid SNAP crisis: How to give wisely
With fewer safety nets, ‘robbed’ Gen X is facing a retirement crisis, top advisor says
States sue Trump over rule limiting student loan forgiveness for public servants
How to navigate open enrollment as health insurance premiums increase
Many mutual fund strategies are launching as ETFs: What it means for investors
These inherited IRA mistakes could reduce your windfall, advisors say
Layoffs are mounting, making it a ‘challenging time to be unemployed’: expert
Why travel insurance may not protect you in the government shutdown
Student loan class action effort: Trump official, credit agencies hurt borrowers’ scores
Treasury Department: Series I bond rate of 4.03% through April 2026
Taxpayers may see ‘record tax refund season’ in 2026, analysts say
Millions face ‘huge sticker shock’ when ACA open enrollment starts Nov. 1
Here’s the maximum 2026 Social Security full retirement benefit, after 2.8% COLA
Student loan forgiveness for public servants to be limited under Trump
Democrats propose increasing VA, Social Security benefits by $200 a month
CNBC’s Financial Advisor 100: Best financial advisors, top firms for 2025 ranked

Roughly 175 million consumers have credit cards. While some pay off the balance each month, about 60% of credit card users have revolving debt, according to the New York Fed. That means they pay the equivalent of about 20% a year, on average, on the balances they carry from month to month — making their credit cards one of the most expensive ways to borrow money.

‘A divergence in consumer credit risk’

More borrowers are now either superprime, with a credit score of 780 or higher, or subprime, with a credit score below 600, according to Charlie Wise, TransUnion’s senior vice president of global research and consulting.
That’s creating an increasingly bifurcated consumer economy. “We are seeing a divergence in consumer credit risk, with more individuals moving toward either end of the credit risk spectrum,” Jason Laky, executive vice president and head of financial services at TransUnion, said in a statement.

Increasingly, consumers now score in the highest and lowest score ranges, an earlier report by FICO also found. FICO is the developer of one of the scores most widely used by lenders. FICO scores range between 300 and 850.

In the so-called “K”-shaped economy, some borrowers are in financial distress while others have strengthened their financial position, largely by benefiting from stock market rallies and appreciating home values. 
Wealth has risen fastest for those at the very top, other data from the Federal Reserve also shows, as the value of their investment holdings continues to grow. The top 10% of Americans hold over 87% of corporate equities and mutual fund shares.
On the other side of the divide, separate studies show large pockets of heightened financial strain.

Inflation, debt and the shutdown: A ‘volatile combination’

Beyond rising debt balances, 38% of consumers said it’s “difficult” or “very difficult” to pay bills on time. Among those falling behind, 67% cite insufficient income, according to a survey by debt management company Achieve released Friday.
The federal government shutdown, which has now stretched past a month, has only added to the pressure on low-income families by affecting critical government programs, including SNAP food benefits.
“The volatile combination of consumer debt, inflation hangover on prices, elevated interest rates and the shutdown could leave a lasting economic impact, particularly for those more at-risk American households struggling to make ends meet,” said Brad Stroh, Achieve’s co-founder and co-CEO.

“Even though they have a job in most cases, their purchasing power is no longer rising,” Mark Zandi, chief economist at Moody’s, said of Americans who are struggling.
Because wage gains have largely not kept pace with stubborn inflation, “many are borrowing money to supplement their income and now they are paying interest on that debt,” Zandi said.
“They owe a lot of money, but they own very little,” he said.
Subscribe to CNBC on YouTube. More