Berkshire Makes Rare Big Tech Bet
Warren Buffett’s Berkshire Hathaway disclosed a new $4.3 billion stake in Alphabet, sending the stock up more than 5%. The purchase, likely made by portfolio managers Todd Combs or Ted Weschler, stands out as one of Berkshire’s largest tech allocations in recent years. Alphabet’s strong 2025 performance, driven by AI adoption and improving cloud profitability, may have made the stock attractive at current valuations. The move also highlights Berkshire’s evolving investment approach as Greg Abel prepares to take over as CEO.
Trump Rolls Back Tariffs on Key Food Imports Amid Price Pressure
President Trump signed an executive order removing tariffs on more than 100 food products, including coffee, bananas, beef, and spices, to help ease rising grocery costs. The exemptions represent a partial rollback of earlier tariff policies as the administration faces pressure over food inflation, particularly high beef prices. According to the White House, these items cannot be produced domestically in sufficient quantities. The tariff relief is retroactive to November 13, and officials say additional reductions on coffee and banana imports are expected through upcoming trade agreements.
Mixed Signals in Consumer Spending Ahead of Holiday Season
Consumer spending is sending mixed signals as the holiday season approaches. High-income shoppers are starting to trade down, younger consumers are pulling back amid job market pressures, and lower-income households remain strained. Despite solid GDP growth, weakening sentiment, slowing sales trends, and private payroll data showing job losses all point to growing headwinds for retailers. Value-oriented companies, such as Walmart, dollar stores, and several quick-service chains, are seeing increased traffic from affluent customers seeking deals. At the same time, younger consumers are cutting back on discretionary categories like dining out, apparel, eyewear, and fast-casual meals. Still, several strong brands, including Coach, Ralph Lauren, On, and Dutch Bros., continue to outperform. Industry groups expect holiday spending to rise modestly, with shoppers increasingly focused on promotions and lower-cost options.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
