Warren Buffett's Strategy Called Into Question as Pokémon Cards Outperform S&P 500

A Reddit post is questioning Warren Buffett's strategy, as data from Card Ladder shows Pokémon trading cards have outpaced the S&P 500's returns by a staggering 3,261% over 20 years. The average one-year increase for a Pokémon card is nearly 46%, dwarfing the S&P 500's 12% annual return rate. This trend is fueling a "Pokémania" among collectors, who see these cards as a superior alternative to traditional stock market investments.

A viral Reddit post on the r/Finanzen subreddit is challenging the investment strategy of Warren Buffett, the renowned "Oracle of Omaha." The post highlights data from Card Ladder showing that Pokémon trading cards have significantly outperformed the S&P 500 over the past 20 years. The average Pokémon card has appreciated by an astonishing 3,261% over this period, with an average one-year increase of nearly 46%. This remarkable performance is fueling a "Pokémania" among Gen Z and Millennial collectors who see these cards as a superior alternative to traditional stock market investments [1].

The Reddit user, who claims to have a substantial collection of Pokémon cards, questions whether even Warren Buffett needs to re-evaluate his investment strategy. The user points out that the cards' returns dwarf those of the S&P 500, which has an average annual return rate of 12%. This trend is not unique to Pokémon cards; other sports cards, such as American Football, Basketball, and Baseball, have also outperformed the S&P 500 [1].

While the impressive returns of Pokémon cards are undeniable, collecting physical cards presents its own set of challenges. Unlike stocks or NFTs, which are digital collectibles, cards are physical and often illiquid assets. The high demand for these cards has led to shortages at major retailers like Walmart Inc. (WMT) and Target Corp. (TGT) [1].

Warren Buffett has been known for his "buy and hold" strategy, which has been successful for many years. However, recent market conditions and geopolitical events have led to a shift in his approach. Buffett has been accumulating cash and selling off stakes in certain stocks, such as Apple and Bank of America, to build a cash war chest for future opportunities [2]. This move has raised questions about his investment strategy and whether he is preparing for a potential downturn in the market.

Despite the challenges and uncertainties, Buffett's investment philosophy remains steadfast. He continues to be a formidable investor, proven by his recent acquisition of shares in Heico Corp. (NYSE: HEI), which has seen a significant increase in its stock price [2]. While Berkshire Hathaway may appear to be in the doldrums, its annual profitability and Buffett's strategic approach suggest that there is a method to his apparent bearishness.

The question remains whether Buffett will need to adjust his strategy to incorporate the growing trend of physical collectibles like Pokémon cards. As the market continues to evolve, investors and financial professionals will be watching closely to see how Buffett adapts to these new investment opportunities.

References:
[1] https://www.benzinga.com/markets/market-summary/25/08/46891921/pokemon-cards-crush-sp-500-redditor-says-even-warren-buffett-may-need-to-rethink-his-strategy-amid-massive-returns
[2] https://247wallst.com/investing/2025/08/05/warren-buffett-has-never-looked-this-bearish/