Berkshire Hathaway's stock has slipped since Warren Buffett stepped down, but investors shouldn't expect the decline to last. The conglomerate recently acquired a $1.8 billion stake in Japan's Tokio Marine, demonstrating the kind of value-oriented moves that have defined Buffett's legacy. The company's massive cash pile and diversified portfolio give successors plenty of firepower for opportunistic investments.

The broader market showed remarkable strength recently. Both the S&P 500 and Nasdaq composite posted their best monthly gains since 2020, when stocks were recovering from the Covid-19 panic. This tech-driven rally has lifted sentiment across Wall Street, even as geopolitical tensions in the Strait of Hormuz remain unresolved.

Apple will now test whether the rally can sustain momentum. The tech giant reported encouraging quarterly results, and investors are watching closely to see if Apple's performance can keep the market's positive momentum alive without a resolution to Middle East supply chain concerns. Stock futures pointed to a mixed open, suggesting caution persists.