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2025 Berkshire Hathaway AGM
What new CEO, Greg Abel brings to the table and more...
Kintsugi Investing
May 08, 2025
Warren Buffett took the stage for the last time as CEO of Berkshire Hathaway. His 60th AGM wasn’t just a shareholder update, it was a farewell tour, a strategy blueprint, and a final masterclass in long-term thinking.
Here are the key takeaways (and what they mean for disciplined investors):
1. Abel Takes The Reins by End 2025
For the first time, Buffett confirmed the timeline for leadership transition:
“Greg understands capital allocation as well as I do. And he understands the operations far better than I do now... the final word will be Greg’s.”
Greg Abel has been running Berkshire’s day-to-day operations for years. This announcement simply makes official what’s already true.
📌 Takeaway: Don’t wait for formality to recognize when real power has shifted.
2. Apple Stake Trimmed, but Faith in Tim Cook Is Unshaken
Berkshire reduced its Apple position slightly. But Buffett couldn’t have been more generous in his praise:
“Tim Cook made us more money than I’ve made for Berkshire!”
He praised Tim Cook’s leadership and Apple's unmatched capital allocation skill.
📌 Takeaway: The best investors know when to take profits, without falling out of love with the business.
3. GEICO Is Back, and Profitable Again
Ajit Jain proudly reported:
“GEICO has shown a combined ratio that has an 8 in front of it… the largest profit anyone is making on the underwriting side in the personal automobile business.”
GEICO is once again a margin machine. More than $1B in quarterly profit and $39B of float, on a $50M original investment.
Buffett added:
“It’s a fascinating case study… it takes years to develop.”
📌 Takeaway: Turnarounds are rarely fast, but when executed well, they’re worth every day waited.
4. A Fortress Balance Sheet (and Why It Matters)
Greg Abel emphasized that Berkshire’s massive $347B cash pile is not idle capital—it’s strategic armor:
“It allows us to weather the difficult times and not be dependent on anybody… We will never be dependent on a bank or some other party for Berkshire to be successful.”
📌 Takeaway: Cash isn’t lazy—it’s optionality.
5. On Trade & Tariffs: A Subtle but Serious Warning
Buffett made one of his clearest statements on economic nationalism:
“Tariffs are like putting walls around yourself — and saying, ‘I want to make everything more expensive for the people I’m supposed to be helping.’”
This wasn’t just policy talk. It was investor guidance: prepare for geopolitical complexity.
📌 Takeaway: Macroeconomic walls create microeconomic headwinds. Stay diversified.
6. Japan Bets Are “Long-Term Holds”
Buffett reaffirmed his trust in the five Japanese trading firms:
“We like their business models, capital discipline, and alignment with shareholders... We have no intention of selling.”
This is not a trade, it’s a Buffett-style compounder.
📌 Takeaway: Don’t just look for growth. Look for good governance.
🧠 7. Investing in AI, But Not Chasing It
Ajit Jain noted that GEICO is actively integrating AI:
“AI is going to be a real game changer.”
But true to Berkshire form, it’s a measured approach:
“We’ll jump in promptly, when the time is right.”
📌 Takeaway: Ignore the hype. Invest with readiness, not urgency.
🏘️ 8. Real Estate…Not for Berkshire.
Buffett was asked about real estate vs. equities. His answer was direct:
“There’s just so much more opportunity... in the security market than in real estate.”
📌 Takeaway: Liquidity, scale, and optionality make public equities the king of compounding.
⏳ 9. Patience Isn’t Passive
Buffett on deal-making:
“You have to be willing to hang up after 5 seconds. And you have to be willing to say yes after 5 seconds… patience isn’t always an asset or a liability. It’s a tool.”
Greg Abel added:
“While we’re being patient, never underestimate the amount of reading and work that’s being done to be prepared to act quickly.”
📌 Takeaway: Patience isn’t idle. It’s silent preparation.
10. The Real Legacy: Trust
Buffett closed with something deeper than capital allocation:
“The great pleasure actually in this business is having people trust you.”
That trust is why he built Berkshire. Why he worked into his 90s. Why this meeting mattered.
📌 Takeaway: Trust is the most undervalued asset on a balance sheet, and the hardest to replace.
FINAL WORD
This meeting marked the end of an era. But Berkshire’s strength isn’t just Buffett, it’s a system built on discipline, resilience, and world-class people.
Greg Abel isn’t a new direction. He’s the continuation of a philosophy that works.
The AGM ended with humility and level-headedness, reminding investors of the mental philosophy of a truly patient investor.
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