There are many negative assumptions being made about the market, but Laszlo Birinyi, president and founder of Birinyi Associates, thinks that based on historical trends, this rally could be better than people think. With a potential upside of 20 percent, he expects the S&P 500 to hit 1600 this year.
"This is a stock market rally, where people are looking at stocks," he said Thursday on "Squawk on the Street." One stock Birinyi believes "encapsulates everything" in the market currently is Berkshire Hathaway, which is up year-to-date. "That tells me it's not just the retail investor, it's not short covering, it's not high frequency trading. It's real buyers buying real stocks," he said.