A Modest Proposal for 2026

The year commenced, as these things often do, with a certain…turbulence. The markets, it seems, are afflicted with a peculiar anxiety, a fear that the mechanical intelligences, these new gods of silicon and algorithm, will render entire industries obsolete. A rather dramatic overreaction, one might think, but then again, humanity has always been prone to theatrics. Even Palantir, that purveyor of digital shadows, has felt the chill. Yet, amidst this general disquiet, a few steadfast entities continue to ascend. Alphabet and Meta, those empires built on the fleeting attention of mankind, still manage to accumulate wealth. The S&P 500, bless its heart, clings to a meager 2% gain. A triumph of mediocrity, wouldn’t you say?

It is now, a mere month into this new year, that a prudent investor pauses to reassess the landscape. My own holdings, I confess, are rather…conservative. Apple and Berkshire Hathaway. Two behemoths, seemingly immune to the prevailing hysteria. I grow more convinced with each passing day that these are not merely investments, but rather, bulwarks against the encroaching absurdities of modern finance. They offer a certain…equilibrium. A counterpoint to the speculative fever that grips the market. One could almost say they possess a soul.

Let us examine these entities more closely, shall we? And attempt to discern why they remain, in my estimation, the most promising prospects for the years to come.

Berkshire Hathaway

Berkshire, down a mere 4% thus far, appears almost…undervalued. A fortunate circumstance, given the recent transition of power. Old Mr. Buffett, a man who understood the peculiar logic of capital, has relinquished the reins to Mr. Abel. A capable successor, no doubt, but one cannot help but wonder if the same…magic will endure. The company’s coffers, swollen with $378 billion in cash, present both an opportunity and a burden. A war chest, yes, but also a monument to indecision. One imagines the weight of such responsibility must be considerable.

Trading at a modest 1.5 times its book value, Berkshire presents an attractive proposition. That vast cash reserve, should the market experience a…correction, could prove invaluable. And the company’s portfolio, a sprawling collection of high-quality assets – insurance operations, railroads, energy businesses, and equity stakes in the likes of American Express, Bank of America, Coca-Cola, and Moody’s – offers a degree of diversification that is increasingly rare in this age of hyper-specialization. Of course, the largest holding of all remains Apple. A curious symbiosis, wouldn’t you agree?

The insurance business, while subject to the vagaries of fortune, remains a solid foundation. One can always rely on misfortune, after all. And with careful management, Berkshire should continue to grow its earnings and book value for years to come. It’s a rather…reliable enterprise. Unlike so many others.

Apple

Like Berkshire, Apple has experienced a slight…retrenchment. A mere 3% decline. A negligible amount, really, when one considers the sheer scale of the company. Yet, its latest earnings report reveals a rather compelling narrative. A story of growth, innovation, and, dare I say, discipline.

First-quarter revenue reached $143.8 billion, a 16% increase year over year. Earnings per share rose 19%. Driven, of course, by the insatiable demand for iPhones. A device that has become, for many, an extension of their very being. A curious phenomenon, isn’t it? The company anticipates continued growth in the next quarter, projecting revenue growth of 13% to 16%.

But what truly distinguishes Apple is its…restraint. While other tech giants are recklessly pouring resources into the pursuit of artificial intelligence – a field fraught with uncertainty and hype – Apple is proceeding with caution. A wise strategy, in my opinion. Its earnings per share rose 19% year over year, outpacing even Meta, despite Meta’s faster revenue growth. A testament to the power of financial discipline. One might even say, a touch of…sanity.

And then there’s the services segment, with a gross profit margin of 75.4%. A veritable gold mine. Accounting for 25% of Apple’s revenue, it represents a significant source of growth and profitability. A steady, reliable stream of income. Unlike so many of its competitors, which rely on fleeting trends and ephemeral fancies.

These two companies, Berkshire and Apple, offer a pleasing combination of offense and defense. One a sprawling conglomerate, the other a technological innovator. Together, they represent a solid foundation for a portfolio. A bulwark against the storms that are sure to come.

Of course, both companies face risks. Berkshire’s vast cash reserves place a heavy burden on Mr. Abel’s shoulders. And Apple, as a global behemoth, is vulnerable to regulatory scrutiny and geopolitical instability. But these are risks that are inherent in any investment. And, in my estimation, they are outweighed by the potential rewards.

Overall, I believe these are excellent investments. Especially when paired together. A modest proposal, perhaps. But one that I believe is grounded in sound logic and a healthy dose of…realism.

2026-02-02 20:24

Berkshire Hathaway

Apple

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