Warren Buffett’s name is synonymous with long-term, value-based investing. His classic strategy — identifying quality companies with durable advantages and buying them at fair prices — has stood the test of time. But can this approach be adapted to today’s small-cap investing landscape?

The small-cap sector has taken it on the chin in recent months, with widespread fear and macro uncertainty fueling a broad selloff that’s left many fundamentally solid companies trading at multi-year lows. While this environment has caused plenty of investors to retreat to the safety of larger, more liquid names, it’s also creating potential opportunities for those with a longer-term mindset.

A dramatic spike in long-term bond yields shook financial markets this week, sending investors scrambling as the 10-year Treasury yield soared past 4.5%, marking its biggest weekly surge since 2021. The 30-year yield rose even more sharply, posting its largest weekly gain since 1982. The sell-off was driven by a mix of sticky inflation, trade policy uncertainty, and a volatile geopolitical landscape — all amplified by President Trump’s ongoing tariff saga.

The Russell Reconstitution is an annual event where FTSE Russell recalibrates its U.S. equity indexes, such as the Russell 3000 and Russell 2000, to reflect changes in the market. This process ensures that the indexes accurately represent the current U.S. equity landscape by adjusting for shifts in company market capitalizations and other relevant factors.

Quantum computing, once considered a futuristic concept, is rapidly evolving into a tangible force in the tech industry. Nvidia’s recent announcement of its quantum computing research lab, the Nvidia Accelerated Quantum Research Center (NVAQC), marks a major milestone in the sector.

The current market environment is one defined by stark contrasts. On one hand, major indices are faltering, led by a steep sell-off in technology stocks. The NASDAQ-100, once the pillar of market growth, is now in free fall, weighed down by declining FAANG stocks. Investors who previously viewed these stocks as untouchable are now reassessing their portfolios amid shifting economic conditions and concerns over stretched valuations.

In a market often dominated by mega-cap tech stocks and headline-grabbing trends, small cap investing remains a powerful avenue for those willing to embrace patience as their primary strategy. While these smaller companies may lack the immediate name recognition of their larger counterparts, they offer distinct advantages to investors who can weather short-term volatility in pursuit of long-term gains.

The Department of Government Efficiency (DOGE), spearheaded by Donald Trump with the involvement of Elon Musk and Vivek Ramaswamy, promises sweeping changes to federal operations, including deregulation efforts targeting agencies like the FDA. For the biotech industry, these potential reforms could significantly impact drug development, approval processes, and market dynamics.