The FTSE 100 index of leading British companies has repeatedly struck new all-time highs in 2026, generating significant excitement among British investors.
That rally, however, has prompted at least one investor to reflect on the enduring wisdom of billionaire Warren Buffett and what it means for portfolio decisions right now.
Buffett famously advised that investors ought to be greedy when others are fearful and fearful when others are greedy, a principle that feels particularly relevant in today’s charged market conditions.
With apparent greed visible across parts of the market, especially in the United States where some valuations look difficult to justify, the case for caution is growing harder to ignore.
In response to those elevated valuations, the investor recently reviewed their entire portfolio and sold a number of holdings, converting paper profits into actual cash gains while conditions remained favourable.
In some cases, a portion of a stake was retained while the rest was sold, and in others, positions were exited entirely, reflecting a selective rather than wholesale retreat from equities.
Yet Buffett’s famous quotation is itself something of a simplification, because the current market is not uniformly greedy, and pockets of genuine value continue to exist for those willing to look carefully.
That more nuanced reading of conditions has led the investor to eye certain stocks as potential additions to the portfolio, even as others have been offloaded at a profit.
One such opportunity is food maker Campbell’s, traded on the Nasdaq under the ticker CPB, which the investor describes as a great business selling at an attractive price, borrowing another well-known phrase from Buffett himself.
Campbell’s shares trade at just 11 times earnings, having fallen 46% over the past five years, a stark underperformance compared to the broader Nasdaq market, which rose 79% over the same period.
That sharp decline reflects a number of genuine headwinds facing the company, including declining revenues driven by shifting consumer food preferences and considerable levels of debt on the balance sheet.
Buffett himself is no stranger to the challenges posed by changing consumer tastes, having invested in Kraft Heinz, yet he has consistently argued that strong brands with deep heritage and pricing power remain powerful long-term wealth builders.
It is precisely that logic which underpins the decision to invest in Campbell’s this year, with the view that its problems, while real, are solvable over the medium term.
The business remains profitable despite its difficulties, and the steep share price fall has pushed the dividend yield to 6.8%, offering meaningful passive income while investors wait for any potential recovery in the stock price.
At that yield level, the investor expressed comfort simply sitting back and collecting income, treating the dividend as a reward for patience rather than relying solely on capital appreciation to justify the position.
Campbell’s is viewed not only as an attractive income play given its headline dividend yield but also as a stock carrying what the investor considers a genuinely compelling valuation relative to its long-term potential.