Warren Buffett's Market Miscalculation: Has the Oracle Lost His Touch?

Warren Buffett, long revered as the Oracle of Omaha, may be losing his luster. The legendary investor's recent moves have raised questions about his ability to read the market. His heavy investment in Apple stock, while successful, may have been more instinct than astute analysis. It appears, he does not believe in revolutionary technology due to low concentration of the magnificent 7 stocks in Berkshire Hathaway portfolios.

Assuming:
Total US Stock Market Capitalization: $50 trillion (approximate value as of July 2024)
US GDP: $22.67 trillion (nominal GDP as of Q1 2024)
Warren Buffett Index = ($50 trillion / $22.67 trillion) x 100 ≈ 220.5%

https://www.fool.com/investing/2024/05/28/why-buffett-just-sold-20-billion-in-apple-stock/

Using the above formula, Buffett's infamous Warren Buffett index predicted a 25 to 30% probability of a NYSE market crash or correction, possibly leading him to offload significant holdings of AAPL. However, the market has defied expectations, with the "Magnificent 7" stocks (Amazon, Microsoft, Alphabet, Facebook, Tesla, NVIDIA, and Apple) continuing to soar and the market resistant to bear increases daily. The AI revolution is still in its infancy, we're just getting started. It's early morning, and the real party hasn't begun yet. Imagine the endless diversification of AI?

Notably, Berkshire Hathaway's Class B shares have underperformed compared to a portfolio rich in these seven stocks. In fact, some investors, like myself, have outperformed Berkshire Hathaway B in terms of portfolio growth and capital appreciation.
As of now, my Berkshire Hathaway B shares have returned 7% year-to-date, lagging behind my S&P 500 index fund, which has gained 16%, and my Magnificent 7 stocks, which have impressively risen by 45% over the same period.

As the Artificial Intelligence revolution transforms industries and markets, investors must adapt. The Oracle's miscalculation serves as a reminder that even the greatest investors and analysts can falter. It's time to rethink our approach and embrace the changing landscape.
The only constant in nature is change. In this century, data has become the ultimate currency, and time remains our most precious resource.

This is not a financial advice.
I'm an entrepreneur and long-term contrarian self-investor.