By Tim Russell, President & Wealth Manager at Life Financial Group
Originally shared on the Life in the Markets podcast — 08/18/2025

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Investing Lessons from Warren Buffett, and a Big Win for Christian Investing

 

Weekly Market Recap

This past week, markets were generally positive. The Russell 2000 (small-cap stocks) outperformed, rising about 2.5%, compared to the S&P 500’s 0.9% and the Nasdaq’s modest 0.3%. Meanwhile, oil (-0.9%), gold (-1.9%), and Bitcoin (-2%) all slipped.

We’re also closing in on the end of earnings season, and so far results have been overwhelmingly positive. Over 90% of companies have reported better-than-expected revenue and earnings. This week, big names like Walmart, Target, Home Depot, and Lowe’s will shed light on the health of the American consumer. Internationally, Alibaba’s earnings may provide insight into the Chinese economy—if their numbers are to be trusted.

On the economic front, the Consumer Price Index (CPI) report came in hotter than expected, showing 2.7% inflation year-over-year. While not historically high, it has raised concerns that tariffs and rising prices could weigh on consumer spending. Surprisingly, markets rallied on this news, anticipating that the Federal Reserve will cut rates—with a 92% probability now forecast for a quarter-point cut in September.

Investing Lessons from Warren Buffett

Perhaps the biggest surprise of the week came from Berkshire Hathaway, which deployed $1.6 billion of its massive $344 billion cash reserve to purchase shares of UnitedHealthcare. The insurer has struggled, facing rising healthcare costs, government investigations, and even public backlash. Shares have fallen nearly 60% since April, and Buffett saw value.

While no one should copy Buffett trade-for-trade, his approach teaches us timeless investing lessons.

Three Lessons from Buffett’s Strategy:

  1. Hold Cash for Opportunities
    Buffett’s $344 billion cash pile allows him to strike when valuations look attractive. Wise investors should also maintain a healthy cash position, ready to deploy at fair prices.
  2. Trim Winners at Highs
    Berkshire has been reducing its Apple holdings—not because Buffett has lost confidence, but to lock in gains while valuations are elevated. Harvesting some profits provides liquidity for future opportunities.
  3. Stay Invested—Don’t Time the Market
    Despite high valuations, Buffett hasn’t sold out. He remains invested in companies he has conviction in, resisting the urge to swing in and out of the market based on short-term news.

These three lessons apply to us all: hold some cash, trim winners when prudent, and resist the temptation to time the market.

A Win for Christian Investing

Beyond the numbers, last week also brought encouraging news for values-driven investors. Costco announced that it will no longer carry the abortion pill in its pharmacies.

This decision followed years of advocacy from Christian organizations, including Inspire Investing, Alliance Defending Freedom, and others. Over 9,000 Costco members signed petitions, and investors controlling $56 million in Costco stock urged the company to end this practice. Costco cited weak demand in its decision—but no matter the reason, the outcome is a victory for Christian investors.

This kind of engagement is exactly what faith-based investing seeks to accomplish: influencing companies to stop harmful practices and promote human flourishing. While victories like this are worth celebrating, challenges remain. For example, CVS continues to distribute the abortion pill in some states, framing it as “women’s health care.” Clearly, the work is not finished.

A Call to Prayer

As Christian stewards, we can—and should—pray for our investments. Pray for:

  • Fund managers to make wise and ethical decisions.
  • Companies to operate with integrity, impacting society for good.
  • Discernment for financial advisors, that they may help clients steward wealth faithfully.

God is in control of the markets, and even our investments can serve His purposes.

Verse of the Week

Luke 6:38 reminds us:

“Give, and it will be given to you. With the measure you use, it will be measured back to you.”

Generosity never goes unnoticed by God. As we steward His resources, let’s remember that how we use wealth is not just about returns—it’s about glorifying Him and advancing human flourishing.

Until next time: stay invested, stay wise, and stay faithful.

Stay Connected

Have questions or topics you’d like us to cover in a future episode? Email us at contact@thelifegroup.org with “Life in the Markets” in the subject line.

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Disclaimer: The topics discussed here are for informational purposes only and do not constitute specific investment advice. Investing involves risks, including potential loss of principal. Past performance does not guarantee future results. Securities and advisory services offered through Geneos Wealth Management, member FINRA/SIPC.