We have three strategic asset-allocation models, targeting three risk-tolerance levels: Conservative, Growth, and Aggressive. We make tactical adjustments to the models, based on our outlooks for the various segments of the capital markets. Performance matters, and we monitor closely. So far in 2026, bonds have taken a modest lead over stocks, though both are in negative territory. Looking ahead and from an asset-allocation standpoint, our Stock-Bond Barometer model still sees both asset classes near fair value, so portfolio weights ultimately will depend on strategic factors. We are market-weight on large-cap stocks at this stage of the market cycle. We favor large-caps for growth exposure and financial strength, as well as exposure to the Information Technology sector. Small- and mid-caps offer better valuation. Our recommended exposure to small- and mid-caps is 15% of equity allocation, in line with the benchmark weighting. One of the market surprises in 2025 was the performance of global stocks, which turned in impressive results. We expect the long-term trend favoring U.S. stocks ultimately to re-emerge, given volatile global economic, political, geopolitical, and currency conditions. That said, international stocks still offer favorable near-term valuations, and we target an increased 20% of equity exposure to the group. In terms of growth and value over the longer term, we anticipate that growth, led by the IT sector, will top returns from value, led by Energy, Real Estate, and Materials, due to favorable secular and demographic trends. Value has taken an early lead in 2026, after lagging for the past five years, and appears well positioned with the longer-term with interest rates at elevated levels.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

Berkshire Hathaway is a holding company with subsidiaries in a diverse range of industries, including insurance, railroads, utilities, energy, finance, manufacturing, and retailing. Its major subsidiaries include GEICO, Burlington Northern Santa Fe, Precision Castparts, and McLane Company. As of September 30, 2025, Berkshire also had about $274 billion of equity investments, including significant stakes in Apple Inc., Bank of America, Coca-Cola, American Express, and Chevron. At the end of 2024, the company and its subsidiaries have around 396,500 employees.

Stocks are lower at midday on Friday, having been higher earlier in the session but then falling on news that U.S. GDP grew at just 0.7% based on the second review of fourth-quarter data. The result is believed to be impacted by the government shutdown, but is still another point of uncertainty for investors already grappling with the war in the Middle East, the imminent change in leadership at the Federal Reserve, the outlook for interest rates, and the unknown ultimate impact of AI on the 'winning' and 'losing' sectors in that regard (among other issues).