01.13.26 Ask An Advisor With Wes Moss - The Clark Howard Podcast Recap

Podcast: The Clark Howard Podcast

Published: 2026-01-13

Duration: 35 minutes

Guests: Wes Moss

Summary

Clark Howard and Wes Moss discuss Warren Buffett's retirement and its implications for Berkshire Hathaway, alongside predictions for the investment landscape in 2026.

What Happened

Warren Buffett's retirement marks a significant shift for Berkshire Hathaway, with Greg Abel taking over as CEO. Despite Buffett's continued role as chairman, there are concerns about whether the company can maintain its historical success without its iconic leader. Wes Moss highlights Buffett's impressive track record, noting Berkshire's 19.9% annualized returns since 1965 compared to the S&P 500's 11%. This discussion leads to the 'jockey vs. the horse' theory, questioning if investors should remain confident in Berkshire without Buffett and Munger.

Moss suggests diversification is crucial and advises against going all-in on Berkshire. He recalls Buffett's advice on investing in a trio of Vanguard funds for those with limited capital, emphasizing long-term market engagement. The conversation touches on Greg Abel's potential as a competent successor, highlighted by Buffett's expressed confidence in Abel's abilities.

The episode explores the broader stock market context, with three consecutive years of growth raising questions about sustainability. Moss and Howard discuss the historical patterns of bull markets, noting they tend to last longer than bear markets, suggesting potential for continued growth.

AI's role in the market is examined, with its potential to deliver on past promises and drive productivity gains across industries. Moss outlines a timeline where 2023 was marked by excitement, 2024 by infrastructure builds, and 2025 by increased adoption, hinting at broader impacts in 2026.

Interest rates and their influence on investment strategies are also analyzed, with Moss predicting that as rates decrease, investors might shift from money markets back to equities. He highlights the sizable $7.5 trillion in money markets that could re-enter the stock market as rates drop.

The episode rounds out with a look at the 2026 midterm elections, which historically bring market uncertainty. Moss suggests this could lead to volatility, though potential tax refunds and economic growth could provide positive offsets.

Key Insights

• Berkshire Hathaway has achieved an annualized return of 19.9% since 1965, significantly outperforming the S&P 500's 11% during the same period, raising questions about its future performance without Warren Buffett at the helm.
• Warren Buffett advises investors with limited capital to consider investing in a trio of Vanguard funds, emphasizing the importance of long-term market engagement and diversification.
• Interest rates are projected to decrease, potentially prompting a shift of $7.5 trillion from money markets back into equities, as investors seek higher returns.
• The 2026 midterm elections are expected to introduce market volatility, though potential tax refunds and economic growth could serve as positive offsets.