Warren Buffett Is Losing to the Stock Market in 2023. Here's How He Could Turn It Around.
Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) thumped the stock market in 2022. The stock pulled out a 4% gain, while the S&P 500 fell a whopping 19.4%.
But so far in 2023, the broader market has a big lead on Berkshire, with the S&P 500 up about 7.4% and Berkshire's stock down about 1.2% for the year. It's still early, though, and Berkshire could certainly turn things around given the uncertain outlook right now. Here's how.
The market is largely outperforming right now due to the belief that inflation has peaked and is finally heading south after consumer prices shot up in 2022. The market also seems to believe that the Federal Reserve will soon begin slowing the aggressive interest rate hiking campaign that it first embarked on last March. The Fed's overnight benchmark lending rate, the federal funds rate, has risen from practically zero last March to now inside a range of 4.50% to 4.75%.
Source Fool.com
