The Zacks Analyst Blog Highlights Berkshire Hathaway, VOO, CARZ, MINT and XLK

By Zacks Equity Research | May 06, 2025, 8:59 AM

For Immediate Release

Chicago, IL – May 6, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Berkshire Hathaway (BRK.B), Vanguard S&P 500 ETF VOO, First Trust S-Network Future Vehicles & Technology ETF CARZ, PIMCO Enhanced Short Maturity Active ETF MINT and Technology Select Sector SPDR ETF XLK.

Here are highlights from Monday’s Analyst Blog:

How to Apply Warren Buffett's Principles Using ETFs

Billionaire investor Warren Buffett — the Oracle of Omaha — is known for his value investing style. Many want to mirror the legend's investing strategy and emerge a winner, having navigated the turbulent financial and economic waters.

We recently received Buffett's valuable comments on the ongoing socio-economic transition at the Berkshire Hathaway annual meeting on Saturday. Warren Buffett also said he will soon ask the board of Berkshire Hathaway to have Greg Abel replace him as CEO at the year-end.

Based on his comments, below, we highlight a few ETF investing strategies for Buffett fans.

Market Volatility? Nothing Dramatic, Says Buffett

Despite the S&P 500 being down roughly 3% this year, and having fallen over 19% from its record high at its lowest, Warren Buffett remains unfazed. Speaking at the Berkshire Hathaway annual meeting, Buffett dismissed the recent market turbulence.

Buffett stated that recent market fluctuations over the past few weeks have not been something serious and do not qualify as a dramatic bear market. Buffett pointed out that his Berkshire Hathaway has endured much worse in the past.

Berkshire's stock has declined 50% during three separate periods. In contrast, Berkshire shares are up 19% year to date and closed at a record high on Friday.Thus, you can definitely try Zacks Rank #1 (Strong Buy) Vanguard S&P 500 ETF with a long-term goal.

Tariffs, Geopolitics and a Rebounding Market

Since the post-election surge under President Trump, the market has experienced volatility, largely due to evolving concerns over tariffs. After Trump's "Liberation Day" announcement on April 2, markets dipped, but recent rallies suggest that investors are no longer expecting the worst. By Friday's close, the S&P 500 had fully recovered from those losses.

Buffett on Trade: "It Should Not Be a Weapon"

The first question posed to Warren Buffett at the meeting centered on world trade, as global markets adjust to President Trump's disruptive tariff policies. "Trade should not be a weapon," Buffett stated during the meeting. Meanwhile, we also got some cues of trade de-escalation.

First Trust S-Network Future Vehicles & Technology ETFis an ETF, which was initially beaten down by trade worries, but recovered soon on a temporary tariff pause (read: Auto ETFs Rise on Hopes of Tariff Exemptions).

Berkshire Cash Reserves Top $330 Billion

Buffett's Berkshire ended the first quarter with more than $330 billion in cash — a record-setting stockpile. Investors continue to watch closely for signs of how and when Berkshire will put that capital to work. Berkshire is on the search for investments that make sense to the company and offer good value.

This shows that cash is still king, if you cannot find value in other investments. Investors thus can play the cash-like ETF PIMCO Enhanced Short Maturity Active ETF, which is off only 0.2% this year, while the ETF yields 5.14% annually.

Buffett Sounds the Alarm on Growing U.S. Deficit

When asked about former President Trump's government efficiency initiative—commonly referred to as "DOGE"—Warren Buffett shifted the focus to a broader fiscal concern: rising U.S. deficit.

Buffett warned that the United States is running a fiscal deficit at an unsustainable level. It shows if the deficit can't be managed soon, there are risks for the U.S. dollar and treasuries.

A persistently high deficit may weaken confidence in the U.S. dollar over time. Also, a large deficit may lead to increased government borrowing, pushing up interest rates and lowering bond prices.

Buffett's Investment Wisdom

Buffett shared two key pieces of advice for investors in light of recent market behavior:

Expect the Unexpected

Surprising events will always affect the world. The stock market is no exception. If you react emotionally—feeling euphoric when markets are up and fearful when they're down—then the stock market might not be the right place for you.

Zacks Rank #1 (Strong Buy) Technology Select Sector SPDR ETF can be a good bet now, as the fund is down 6.6% so far this year. But the AI story is here to stay, and Big Tech is bound to make its mark—sooner or later—despite fears about the rise of low-cost AI companies like DeepSeek.

Adapt Your Philosophy, Not Your Goals

"If it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy," Buffett said. He emphasized that the world won't change to suit your investments—you need to adapt to it.

With the world now leaning toward AI, cloud and cybersecurity, investors may adapt their investing style accordingly.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Berkshire Hathaway Inc. (BRK.B): Free Stock Analysis Report
 
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
 
Vanguard S&P 500 ETF (VOO): ETF Research Reports
 
First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports
 
PIMCO Enhanced Short Maturity Active ETF (MINT): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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