Warren Buffett to retire - what it means for your portfolio

Big news out of Omaha: Warren Buffett, the legendary "Oracle" himself, is stepping down as CEO of Berkshire Hathaway.

It's a moment investors knew would come eventually, but still, it hits hard for those that hang on his every word. At 94, Buffett has certainly earned a break.

However, the real question now is: what's next for Berkshire? And could it mean new opportunities closer to home in the Australian stock market?

Let's rewind for a second.

While Buffett's portfolio has been heavily US centric, Berkshire hasn't ignored Australia altogether.

Back in 2015, it took a stake in Insurance Australia Group (ASX: IAG). That deal didn't go the distance, but it sent a clear message: Australia is on Berkshire's radar.

Could it return? Without a doubt.

Insurance has always been Buffett's sweet spot and names like QBE Insurance (ASX: QBE), with global reach and reliable cash flow, ticks every box in the Buffett playbook.

But here's the twist... we don't need to wait for Berkshire to rediscover our stock market, because Australia already has its own mini-Berkshire Hathaway in Washington H. Soul Pattinson (ASX: SOL).

SOL might not make headlines like Buffett, but its track record is pure class.

Founded as a pharmacy, it's now a diversified investment machine with exposure to equities, private equity, real estate, and credit markets.

And here's the kicker it's never missed a dividend since it listed in 1903. Even better?

It's increased its dividend every single year for the past 24 years. That's the kind of consistency even Buffett would admire.

Technically, SOL is heating up too.

After trading in a tight $32-$36 range since mid-2023, it has just broken out above $36.

Its all-time high is $40 and based on past behaviour such as the breakouts in April 2018 and March 2021, this could be the start of another strong leg up.

So, if you're a disciple of Buffett or simply someone who believes in the power of long-term compounding then Washington H. Soul Pattinson deserves your attention. Buffett may be stepping aside, but his principles are alive and well right here on the ASX.

What are the best and worst-performing sectors this week? 

The best performing sectors include Utilities, up more than 1.5%, followed by Industrials and Real Estate, both up under 1.5%.

The worst performing sectors include Health Care, down more than 3%, followed by Financials, down more than 2% and Energy, slightly in the green.

The best performing stocks in the ASX top 100 include Block Inc, up more than 10%, followed by Ampol Limited and Evolution Mining, both up more than 8%.

The worst performing stocks include Telix Pharmaceuticals, down more than 9%, followed by Westpac Bank, down more than 8% and CSL Limited, down more than 6%.

What's next for the Australian stock market? 

This week, the All-Ordinaries Index took a breather, to date slipping just under 1%.

It has not been a major selloff, if anything, the subdued move suggests a market pausing amid uncertainty. That is no surprise, given the steady stream of mixed headlines.

One moment it's optimism over the US and China trade talks, the next it's fresh worries about global growth. With sentiment swinging back and forth, it's natural to see a bit of hesitation.

Still, there's something important to keep in mind: the market has clawed back roughly 75% of its decline from the all-time high achieved only a few months ago.

That's a strong sign this bull market remains intact, even if the path forward has not always been smooth.

Looking more deeply, sector performance has been a mixed bag. Financials dipped, but materials found their footing and rallied, helping keep the broader index in balance.

For sharp-eyed traders, there are solid stock-specific opportunities to be found. If you are feeling like the action has passed you by, relax, this market is not done yet.

With the strained US and China relations showing signs of thawing, even a small positive surprise could be just the spark needed to drive the Australian stock market to new highs.

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