Motley Fool Money · Saturday, September 12, 2026
A listener shared Howard Marks' observation that when the S&P 500 hits a P/E of 23, the subsequent 10 years yield minimal returns. This led to the idea of treating Berkshire Hathaway as a diversified, fair-valued alternative to the index, a sentiment echoed by Scott Phillips.
“To basically treat Berkshire like an ETF. It is reasonably diversified, trading around fair value, and with that cash pile, plus Berkshire's track record. Maybe it's a better bet than the index right now.”
“Howard Marks, he's a legend for a reason. He's got incredible perspective, and he's got incredible experience. And I think he's incredibly insightful. And I think he's right. I think, I think he's right.”
“So, you know, when you look at all those factors, and you look at the market, and you look at the valuations, and you look at the alternatives.”