The Clark Howard Podcast – Ask An Advisor with Wes Moss
Episode: 01.13.26 | Date: January 13, 2026

Episode Overview

This episode of The Clark Howard Podcast features a conversation between Clark Howard and Wes Moss, focusing on major investment news—the retirement of Warren Buffett as CEO of Berkshire Hathaway—and its implications for investors. The episode also dives into the outlook for the stock market in 2026, addressing key economic questions and fielding listener questions about investment strategies, dry powder, and dividend ETFs. The tone is conversational, pragmatic, and reassuring, aimed at empowering listeners to make informed personal finance decisions.

Key Discussion Points & Insights

1. Warren Buffett’s Retirement: What It Means for Investors

[01:00 – 15:00]

• Warren Buffett Steps Down: Warren Buffett, long-time CEO of Berkshire Hathaway, is stepping down, with Greg Abel taking the helm while Buffett remains Chairman.

  • Clark: “First of all, this is like a meteor. There's never been somebody like him.” [02:23]
  • Wes: “He still has the mind of a very young person ... still super sharp and super witty.” [01:15]

• Buffett’s Performance Legacy:

  • Since 1965, the S&P 500 compounded at about 11%/year vs. Berkshire’s ~20%, an astonishing difference due to compounding.
  • Wes: “A thousand bucks back in 1965 would have turned into more than $55 million.” [03:32]
  • Clark: “Warren Buffett's always said himself, it's time in the market, not timing the market.” [04:10]

• Leadership Change Risks:

  • Clark references Peter Lynch’s departure from Magellan, highlighting risks when visionary leaders exit.
  • Clark: “You always follow the jockey, not the horse... Does that mean you dump [Berkshire]? I would say no ... Diversification is everything.” [05:04−06:05]

• Greg Abel’s Qualifications:

  • Buffett’s strong endorsement of Greg Abel and emphasis on his operational expertise and business acumen.
  • Wes: “He was very adamant that Greg Abel ... is the most competent person he knows ... and wouldn’t trust anybody else to manage his money rather than Greg Abel.” [06:44]

• Berkshire’s Unique Structure:

  • Berkshire’s ownership of private companies, not “private equity,” which typically layers on fees.
  • Clark: “Berkshire Hathaway doesn't lay on one layer after another ... of expenses. That is so much at the heart of private equity ... where everybody gets their cut except the end consumer, the end investor.” [09:13]

• Future Returns Unlikely to Match the Past:

  • Both agree that Berkshire’s days of extraordinary outperformance are behind it, but it’s still a solid, unique conglomerate.
  • Wes: “Virtually impossible [to see those past returns again] ... If you really want to understand how it got to have such a outperformance, it's those early years.” [10:41]

• Berkshire’s Growing Pains:

  • Now a vast, “lumbering giant,” it’s harder for the company to grow at past rates.
  • Clark: “You cannot grow at the same way from when you're a baby entity to now you're a lumbering giant.” [11:28]

• Overall Advice to Investors:

  • Don’t sell Berkshire just because of leadership changes, but don’t overconcentrate—stay diversified.
  • Clark: “You just don't sell your Berkshire Hathaway. But you need to be careful ... The returns you talked about, double the S&P 500. That is so out of the ordinary.” [09:06]
  • Wes: “I try to be a buy and hold investor. And unless something fundamentally and drastically changes—and I don’t think [this] is a drastic enough change ...” [13:48]

• Longevity of Berkshire:

  • Buffett has said Berkshire could be around 100 years from now:
    • Wes: “If he had to make a bet on a company that would still be around in 100 years ... he likes Berkshire’s chances.” [14:31]

2. 2026 Stock Market & Economic Outlook

[16:18 – 25:28]

• Bull & Bear Markets:

  • Bull markets typically outlast bear markets—average bull is 58 months/172% gain vs. 14 bear markets analyzed.
  • The current bull market is at 92% (from its start) and 139 months; historically there could be more runway.
  • Wes: “Bull markets on the other hand are typically five to six years long ... If history continues to repeat, this bull market we're in now isn't necessarily that old.” [17:10]

• AI’s Impact:

  • The “MAG7” (top 7 AI companies) drove most of market’s earnings growth since 2023. Now, AI productivity is spreading across sectors.
  • Wes: “2023 was excitement ... 2024 was all the build out ... 2025 we had adoption ... Now, does the productivity spread out to all industries?” [18:12]
  • AI companies' earnings growth (formerly 62%) and the rest of the market (formerly 1%) are converging to parity (~15% growth each forecasted).
  • Wes: “We are early but not brand new in having productivity spread out to the other sectors ... an interesting development to watch for in 2026.” [19:30]

• Interest Rates & Money Markets:

  • Fed has lowered rates from 5.5% to 3.7%.
  • Money market yields are dropping, potentially pushing $7.5 trillion (currently in money markets) into equities as investors seek returns.
  • Wes: “When money market rates come down ... investors start to get a little antsy ... encourages investment.” [20:37]

• 2026 Tax Refund Stimulus:

  • 2026 tax refunds expected to top $500 billion (~$1,000/taxpayer), which may boost consumer spending and economic growth.
  • Wes: “Tax refunds ... could add a whole half a percent to GDP ... another tailwind.” [24:40]

• Midterm Election Volatility:

  • Historically, midterm years are the most volatile in the four-year cycle; drawdowns average -17%, but average returns still positive at +7%.
  • Wes: “This is the worst year of the four year cycle, but it's still a positive year on average ... a lot of uncertainty all through the summer and the fall as we're headed up to midterms.” [23:40]

• General Forecast:

  • No guarantees, but several tailwinds could support a positive economic and market year in 2026.

3. Listener Q&A

[25:28 – 33:45]

a) Dry Powder & Money Markets

Q (Andy, North Dakota): Is money in a money market fund considered “dry powder”?

• Wes: "Anything that is a money market mutual fund is absolutely dry powder … plus cash, plus CDs ... even short to intermediate-term, high-quality bond funds." [25:53]
• Dry powder includes cash/bonds intended for stability and opportunity in downturns; for retirees, 3+ years of living expenses is ideal.

b) Lump Sum Investment Fears (Tammy, Florida)

Q: Son has $70k settlement, fears market bubble, already maxes retirement accounts—what to do?

• Wes: “There's this thought that ... there's something safe about investing in your Roth account or your 401k. And there's something less safe about investing after-tax money. And that's just not true.” [28:12]
• Suggests keeping half in high-yield savings for emergencies, the rest in diversified index funds via dollar-cost averaging over six months.
• Key point: It’s the time horizon, not the account, that determines investment “safety.”

c) Dividend ETFs in Retirement (Kevin, Ohio)

Q: Pros and cons of using dividend-paying ETFs for retirement income?

• Wes: “Dividend investing is how I like to invest, particularly when you’re thinking about your retirement years and you need income.” [31:36]
• Cautions not to chase only the highest yields; prefer moderate, growing dividends.
• 4% withdrawal rule is based on combined income + appreciation, not pure dividend yield.
• Wes: “I'd be less inclined to find the highest dividend payers and more inclined to find moderate dividend payers that are growing ... you should be able to safely withdraw that 4% plus inflation over time.” [32:50]

Notable Quotes & Memorable Moments

• Clark, on Buffett’s impact: “First of all, this is like a meteor. There's never been somebody like him.” [02:23]
• Wes, on compounding: “A thousand bucks back in 1965 would have turned into more than $55 million.” [03:32]
• Clark, on following people vs. companies: “You always follow the jockey, not the horse.” [05:04]
• Wes, on Buffett’s successor: “He was very adamant that Greg Abel ... is the most competent person he knows … he wouldn’t trust anybody else to manage his money.” [06:44]
• Clark, on private equity vs. Berkshire: “I won't call it a scam, but a lot of times it's a rip off for the individual end investor.” [13:07]
• Wes, on market history: “Bull markets ... are typically five to six years long ... If history continues to repeat, this bull market we're in now isn't necessarily that old.” [17:10]
• Wes, on index funds: “He’s [Buffett] really said S&P 500, S&P 500, which of course Vanguard has.” [06:18]
• Wes, on midterm volatility: “This is the worst year of the four year cycle, but it's still a positive year on average, up 7%.” [23:44]
• Wes, on fear and investing: “Everyone's always worried that we're at the top of the market and you don't want to invest. When markets are down, you're also worried that they're going to go down further.” [29:01]

Key Timestamps

• 01:00 – 04:10: Buffett’s legacy, compounding, and Berkshire’s returns
• 04:10 – 06:18: “Follow the jockey,” leadership risk, Magellan/Fidelity analogy
• 06:18 – 10:45: Greg Abel’s background, Berkshire’s private vs. public structure
• 10:45 – 14:30: Can Berkshire repeat its outperformance? Cautions and diversification
• 16:18 – 25:28: 2026 economic outlook—bull market history, AI impact, rates, refunds, elections
• 25:28 – 27:40: Q&A: “Dry powder” assets explained
• 27:40 – 30:48: Q&A: Settlement lump sum, market bubble fears, dollar-cost averaging
• 30:48 – 33:45: Q&A: Dividend ETFs as a retirement income strategy

Summary

This episode offers a nuanced, highly practical look at the changing investment landscape as Warren Buffett retires and economic dynamics shift in 2026. Clark and Wes blend reverence for Buffett’s legacy with reality-based advice: don’t chase yesterday’s performance, keep diversified, and use history (not headlines) to ground investment decisions.

Their examination of the 2026 outlook is rooted in historical patterns, the evolving influence of AI, lower interest rates, coming tax refund stimulus, and political uncertainty. Listener Q&A segments reinforce their pragmatic approach—emphasizing time horizon, systematic investing, flexibility, and smart use of income strategies for retirement.

As always, the episode distills complex financial concepts into relatable and actionable guidance while maintaining the original humor and grounded optimism characteristic of both Clark and Wes.