‘It’s Done’: Investor Warns Warren Buffett’s Berkshire Can’t Beat the S&P 500 — Bets on PayPal and Intel Instead
Key takeaways
- Berkshire’s outperformance edge is fading; investors may shift to distressed, high‑quality plays like PayPal and Intel.
- PayPal free cash flow $6 billion
- Intel purchase price $19
- PYPL YTD gain 4.92%
What happened
Hayes instead highlighted high‑conviction turnaround bets on PayPal (PYPL) and Intel (INTC), noting PayPal’s $6 billion annual free cash flow and Intel’s historic low purchase price of $19 as key catalysts.
Why it matters
The statement challenges the long‑standing belief that Berkshire’s diversified model can beat the market, potentially influencing investor sentiment toward large conglomerates. The comments also underscore concerns about Berkshire’s future value realization without Buffett’s stewardship.
Short-term and longer-term
Short-term. Short‑term traders should watch PYPL and INTC for potential upside as they rally on turnaround narratives.
Longer-term. Longer‑term investors should consider the structural shift away from conglomerates like Berkshire toward focused, distressed high‑quality assets.