🚀 Berkshire Hathaway resumes share repurchasing program

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Market Overview
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Year To Date Performances:

1. Berkshire Hathaway has officially resumed its share repurchase program for the first time since mid-2024, signalling that new CEO Greg Abel and Chairman Warren Buffett believe the stock is currently trading below its intrinsic value. Following a 10% dip from its May record highs, triggered by a 30% decline in fourth-quarter operating earnings, Abel chose to break typical protocol by publicly announcing the buyback to reassure investors during this leadership transition. In a further show of confidence, Abel personally invested $15 million of his own capital in Berkshire shares, an amount equal to his entire after-tax annual salary, and pledged to continue this practice for every year of his tenure. This double-barreled approach of corporate repurchases and personal "skin in the game" aims to solidify shareholder trust in the "post-Buffett" era, reinforcing Abel's commitment to the conglomerate's foundational philosophy of financial conservatism and disciplined value investing.

2. As the war in Iran pushes Brent crude toward $82 a barrel, a fundamental divide has emerged between the current "Powell Fed" and President Trump’s nominee for Chair, Kevin Warsh, regarding the path of interest rates. While current officials like Neel Kashkari and John Williams signal a potential pause in rate cuts to monitor energy-driven inflation, Warsh maintains a "monetarist" worldview that downplays oil shocks in favour of focusing on government spending and money supply. If confirmed, Warsh is expected to follow through on pledges to lower the current 3.5%–3.75% federal funds rate, viewing inflation as a product of fiscal excess rather than as a temporary supply disruption. This stance is bolstered by his belief that AI-driven productivity gains necessitate lower rates to avoid stifling economic growth, suggesting that even a significant regional conflict will not deter a "Warsh Fed" from the President's low-interest-rate agenda.

3. A bipartisan coalition of thirty former defence officials and policy experts has formally petitioned Congress to investigate the Pentagon’s blacklisting of Anthropic, warning that designating a leading American AI firm as a "supply-chain risk" sets a dangerous national security precedent. The letter, signed by high-ranking figures including retired Vice Admiral Donald Arthur and Inflection AI CEO Sean White, argues that Defense Secretary Pete Hegseth’s directive was an inappropriate use of executive power intended to "discipline" the company for refusing to remove safeguards against mass surveillance and fully autonomous weaponry. By forcing thousands of contractors to sever ties with the creator of the Claude models, the group contends the administration is effectively weakening the U.S. in the global AI race against foreign adversaries. This escalating pushback follows a similar protest from the Information Technology Industry Council, which represents giants like Nvidia and Google, that characterized the move as a "category error" that misuses emergency authorities typically reserved for hostile foreign entities.

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