My Berkshire experience

My Berkshire experience

After years of saying “someday,” I finally decided 2025 would be the year. No more excuses, it was time to make the pilgrimage to Omaha. As fate would have it, I couldn’t have picked a more historic moment: the 60th Annual Berkshire Hathaway Shareholders Meeting and the year Warren Buffett officially stepped down as CEO.

For years, I’d followed Buffett, the Oracle of Omaha, not just for his investment brilliance but for his unwavering commitment to simplicity, patience, and value. Over his 60-year run, Berkshire compounded returns at an incredible 19.9% per year, dwarfing the S&P 500’s 10.4%. The result? A mind-blowing 5.5 million percent total gain for shareholders. But what impressed me just as much was how he did it with minimal fanfare, no flashy salaries, and certainly no hedge fund-style fees. Just $100,000 a year and about $300k in security expenses. In a world of overpaid executives, Buffett remained an outlier in every sense.

I flew out from London to Chicago on the Wednesday before the meeting. From there, I rented a car and drove the 460 miles to Omaha – cruising through the heartland of America, with nothing but highway, time, and thoughts. I spent the night at a roadside motel in Iowa, one of the many accommodation facilities dotted every few miles along the highway. This was my third trip to the US, the last being 10 years prior when I drove from Chicago to San Francisco.

Photos above: common American road trip scenes.

By Thursday, I arrived in Omaha and headed to Gorat’s steakhouse, a Buffett favourite. There, I met up with two friends, one from Zimbabwe, the other from Portugal. The steaks were fantastic, and so were the prices: $350 for three. Classic Buffett – great product, great pricing power.

Lunch at Gorats

That evening, we made our way to the University of Nebraska Business School for welcome drinks and dinner ahead of the Value Investment Conference. Surrounded by fellow investors, Buffett enthusiasts, and curious minds from all over the world, it felt like more than just an ordinary conference. It was a meeting place of shared philosophies, values and interests.

Value Investment Conference

The Value Investment Conference kicked off with a warm welcome from Robert Miles, author and instructor of the “Genius of Warren Buffett” course, as he greeted attendees from over 27 countries. The lineup of speakers reflected the global reach of Buffett’s philosophy.

Charles Jennings, CEO of Stonehouse Corporation – a Berkshire-style private equity firm based in Australia and New Zealand, shared how his firm, backed by Charlie Munger since 2022, takes a long-term, permanent capital approach to business ownership.

Next up was Brett Gardiner from Discerne Group, who delved into Buffett’s early investments and the evolution of Berkshire Hathaway through smart capital allocation and a focus on control. Discerne, managing $2.4 billion, currently holds significant positions in Chinese tech giants Alibaba and JD.com.

The day concluded with the Omaha Value Dinner, where Himayani Puri of First Manhattan – a $34 billion fund founded by Buffett’s close friend David Gottesman – took the stage. She laid out their disciplined investment process rooted in deep research, a business-owner mindset, and low turnover, tax-efficient compounding. Their portfolio is structured into three buckets: serial compounders (like Berkshire and Visa), undervalued giants (like Apple and Microsoft), and special situations (like KKR and ActisVision). KKR, in particular, was a standout, First Manhattan began buying the stock in 2019 when it was trading at a 20% discount to NAV. Today, it has returned nearly 5x, buoyed by structural industry tailwinds and underappreciated growth levers.

Dr Glen Arnold – Henry Spain Investment Services

Dr. Glen Arnold from Henry Spain Investment Services in the UK opened Friday’s proceedings with a thoughtful presentation on how Buffett views bubbles and valuation. Using the Shiller CAPE ratio, he highlighted that U.S. equities are currently trading at a multiple of 33, matching 1929 and just below the 1999 dot-com peak. Both periods were followed by sharp drawdowns. His message was clear: high valuations today suggest modest future returns, even if corporate profits continue to rise.

Arnold challenged the idea that growth and value are opposing strategies. Instead, he emphasized that growth is simply a component of value, what matters is how much you’re paying for it. Quoting Buffett, he described how bubbles often begin with a sound idea that morphs into irrational price speculation as people forget the original logic. It happened in housing pre-2008, and it’s happening again, he warned.

He offered practical wisdom for navigating frothy markets:

• Don’t chase price action, invest, don’t speculate.
• Assess the durability of a company’s competitive advantage, not just its growth potential.
• Avoid trying to leave the party at one minute to midnight, by then, it’s often too late.

Arnold used a memorable analogy: investing is like judging birds in a bush. Ask yourself: Are there really birds there? When will they emerge? And how many? Then discount those answers by today’s interest rate. If the math doesn’t make sense, walk away and look for other bushes.

His parting advice? Stay rational, avoid the madness, and look for value where others aren’t – particularly when business owners themselves are feeling pessimistic. Sometimes, the best investments come when no one else wants to touch them.

Omar Malik – Hosking Partners

Next up was Omar Malik from Hosking Partners, who delivered one of the more intellectually provocative talks of the day: “Buffett: The Secret Capital Cyclist.” His central message? Look beyond earnings, focus on supply, and back the capital allocators who know how to win the long game.

Drawing heavily from the work of Edward Chancellor, Omar emphasized that it’s not earnings growth, but return on capital, that really drives long-term share prices. And that return on capital is ultimately shaped by the level of competition in a given industry. Buffett’s genius, he argued, lies in his instinct for capital cycles—and his knack for identifying the rare “.400 hitters” who know how to allocate capital wisely. Edward hosts an excellent podcast called “The Capital Cycle” where he speaks with Marathon Asset Management fund managers about all things capital cycle related. I listened to an episode recently about Whitbread PLC stating their subsidiary Premier Hotels was well positioned in the UK.

Rather than micromanaging them, Buffett backs these star operators and lets them swing freely. Omar cited Apple as a prime example – not just for its ecosystem or brand power, but because of the intelligence with which capital would be deployed. He highlighted two modern .400 hitters in that mould: Bom Kim of South Korean company Coupang and Brian Dalton of Altius Minerals.

One memorable Buffett quote stood out: he wouldn’t take $100 billion to try and build a Coke competitor, underscoring how some moats are simply too wide to challenge. In such cases, you don’t compete, you invest.

Omar also broke down Buffett’s lesser-known playbook: dynamic allocation. Yes, he concentrates when conviction is high, but he’s also used the basket approach – investing in a group of related stocks (airlines, Japanese trading houses, pharma) to let the winners emerge over time. This method, Omar reminded us, is often overlooked in favour of the “concentrated Buffett” narrative.

He also touched on contrarianism and the lag between return on capital cycles and market sentiment. The smart money, Buffett included, moves ahead of the crowd, buying into return-on-capital upturns before the market catches on.

The most striking slide for me? Buffett as a Swiss army knife investor, deploying not just one strategy, but many: quality compounders, merger arbitrage, activism, commodities, deep value, and bonds. The takeaway was clear: adaptability, not dogma, is Buffett’s real edge.

Oliver Müller – Accresco

Oliver Müller of Accresco, an investment firm based in Mauritius. A true global citizen, originally from Germany, with a career that’s taken him through Switzerland, London, and the U.S., Oliver brought a refreshing blend of optimism, adaptability, and sharp investing insight to the stage.

His message was framed with memorable metaphors: Be bullish like a bull, and don’t go extinct like the dodo. The bull represented rational optimism, thinking in probabilities, tuning out media hysteria, and backing businesses solving real-world problems. The dodo? A cautionary tale from Mauritius itself, wiped out because it failed to adapt. For investors, the lesson is clear: rigid thinking can kill returns.

Adaptability, he argued, is a competitive edge. He urged us to evolve with the times, questioning outdated frameworks, embracing multidisciplinary learning (echoing Munger’s teachings), and staying open to new evidence. Valuation, in his view, should never be static. It’s a living process shaped by changing business models, markets, and macro dynamics.

Oliver’s investing style leaned toward quality. He zeroed in on five moat-building forces: intangible assets, cost advantages, switching costs, network effects, and efficient scale. Companies with one or more of these are more likely to produce high, durable returns on capital, and make it through cycles intact.

Among his current favourites were Hoya Corporation, a Japanese leader in precision optics and medical technology, and RELX, a UK-based data analytics giant delivering scalable tools to highly regulated industries. No hype, just high-return, competitively advantaged businesses.

His fund’s top holdings were a basket of quality compounders: Microsoft, Nvidia, Eli Lilly, Novo Nordisk, and Visa.

Francois Rochon – Giverny Capital

If there was one speaker who embodied quiet conviction and long-term thinking, it was François Rochon of Giverny Capital. Soft-spoken, with the calm assurance of someone who’s seen every market mood, François shared the principles behind his strong 13.5% annualised returns (net of fees) since 1993, returns built not on flashy trades, but on the patient ownership of outstanding businesses.

Francois is based in Montreal, Canada and manages around $3 billion. His golden rule? Think like a business owner, not a stock trader.

François is the first to admit that even great strategies come with rough patches. One in every three years he may underperform the benchmark, and he’s perfectly okay with that. He doesn’t try to time the market or jump in and out based on sentiment. Instead, he stays fully invested, focusing on fundamentals and riding out the noise.

That mindset was on full display when he spoke about Constellation Software, a Canadian gem that quietly compounds through savvy acquisitions of niche vertical software businesses. Its CEO, Mark Leonard, famously takes no salary or bonuses, a striking example of alignment and long-term thinking. With 22% revenue CAGR over a decade, the results speak for themselves.

Another favourite was Booking Holdings. As a frequent traveller myself, I couldn’t help but nod when he mentioned how ubiquitous Booking.com has become. François highlighted its aggressive share buybacks and its early moves to integrate AI, a natural evolution for a business already operating at scale. The market clearly agrees, with the stock trading at 33 times earnings.

He closed with a thought I’ve been chewing on since: “Patience is not just the ability to wait, but the ability to keep a good attitude while waiting.” That good attitude, he said, is rooted in staying focused on what the company is doing, not the stock price flashing on your screen.

Rob Vinall – RV Capital (Switzerland)

Rob’s talk centred on the high cost of mistakes of omission – the opportunities we don’t take. While mistakes of commission are limited (you can only lose what you invest), missing out on transformational winners like Nvidia, Alphabet or Bitcoin can mean uncapped lost upside.

Why do investors make omission errors?

• Behavioral pressure: Losses hurt more than missed gains
• Career risk: You don’t get fired for missing a ten-bagger, but you might for a failed pick
• Social conformity: Safer to fail conventionally than succeed unconventionally
• Vanity: Value investors often refuse to “overpay”
• Fear of high multiples

He challenged traditional value investing metrics (low P/E, P/B, high dividend yield), warning they can signal value traps rather than real value.

The 5 Types of Businesses:

1. Mr. Value Trap – No growth + inflation = shrinking margins. Appears cheap on first glance, but deteriorates with time.
2. Mr. Value Stock – No growth, no cost inflation. Keeps pace with inflation but no upside.
3. Mr. Good Business – Real growth and operating leverage; profits rise with stable margins.
4. Mr. Great Business – Real growth and pricing power; growing margins. E.g., Apple, Microsoft. Customers stay loyal despite rising prices.

Rule of thumb: If you keep buying a product even when it gets more expensive, that’s a great business. I am thinking about steaks at Gorats.

Rob argues that multiples-based investing works for bonds or stable businesses, but great businesses demand a cash flow focus. They trade at higher multiples for a reason and outperform over time.

Strategy:

• Focus on cash generation, not just valuation metrics
• Buy great businesses aggressively during market corrections
• Examples of great businesses at:
  • Good business multiples: Meta, Interactive Brokers
  • Value business multiples: Credit Acceptance, Didi Global, PDD

His concentrated portfolio (around 10 stocks) includes names like Carvana and Meta.

Steve Check – Check Capital Management (USA)

Steve Check, a flamboyant fund manager (and Ferrari fanatic) from southern California runs a distinctive investment strategy centered on leveraging Berkshire Hathaway’s performance using stock options. His approach sets him apart from traditional managers, combining deep conviction with a structured options overlay to amplify returns.

Key Highlights:

• Berkshire-focused strategy: The fund’s long-term success is heavily tied to Berkshire Hathaway’s outperformance.
• Options leverage: Uses stock options to increase exposure and boost returns, a strategy that has worked well over the past 15 years given Berkshire’s strong compounding.
• Fee model: Charges 10% of profits, rather than the standard 1-2% of AUM, aligning interests more closely with investors.

This fee structure is particularly compelling for long-term investors seeking performance-based fees and willing to ride out volatility for amplified returns.

Peter Gustafson – Private Investor, Denmark

Topic: Finding Great Businesses with Excellent Management

Peter shared a simple yet powerful 2×2 framework to classify businesses based on growth and return on invested capital (ROIC):

1. High Growth / High ROIC – Great company
   • These are rare and exceptional businesses that compound value efficiently.
   • Example: Novo Nordisk – a top holding of Peter’s, exemplifying both high growth and high returns.
2. High Growth / Low ROIC – Value destroyer
   • Fast-growing but capital-inefficient companies. Often seen in cash-burning tech startups.
3. Low Growth / Low ROIC – Bad company / Value trap
   • These businesses struggle to grow and offer poor returns, even if they look cheap on surface metrics.
4. Low Growth / High ROIC – Cash cow
   • Stable, mature companies that generate strong returns despite limited growth.
   • Example: Coca-Cola

He emphasized that excellent management is crucial across all quadrants, but especially when identifying great companies that can maintain high ROIC as they scale.

Closing Remarks – Robert Miles

Robert Miles wrapped up the conference with a message of community and curiosity, reinforcing the importance of long-term thinking and continuous learning for value investors.

Value Investors Dinner – Bill Smead, CIO of Smead Capital Management

The evening concluded with an engaging keynote by Bill Smead, whose firm manages ~$7 billion with a deep value, long-horizon approach.

He shared stories and insights around:

• Contrarian investing
• Patience in owning unloved assets
• How demographics, inflation, and economic cycles shape opportunity

Bob Miles introducing keynote speaker Bill Smead

The 60th Berkshire Hathaway Shareholders Meeting – Omaha, Nebraska

We arrived at the CHI Health Center Arena around 5:00 AM, eager to queue for entry into what is often called the “Woodstock for Capitalists.” Having secured a parking spot in a nearby lot charging a modest $5 for the day, we joined thousands of Berkshire Hathaway shareholders and supporters already lined up outside the arena.

With the doors opening at 7:00 AM, we spent the early morning hours chatting with fellow investors, enjoying complimentary coffee from the multiple coffee carts strategically placed around the venue, and watching the sunrise over Omaha, a serene start to what would become a high-energy day.

Gaining Entry

To attend the meeting, one must be either a shareholder of Berkshire Hathaway or a guest of a shareholder, and all attendees are required to collect a badge the day before.

As soon as the doors opened, the neat line we had maintained for hours quickly devolved into a scramble, with latecomers pushing forward to get in ahead of those who had waited patiently. Still, we managed to make it through security and up a couple of levels to find seats toward the top of the stadium, with a decent view and a great atmosphere.

Inside the Arena

The stadium was buzzing with energy. Attendees were treated to free drinks and snacks from various booths, while paid food stalls offered everything from burgers and pizza to ice cream. The arena gradually filled with investors from around the world, some attending for the first time, others being veterans of many past meetings. I met one fund manager from Birmingham, Alabama, who had attended the past 27 meetings consecutively.

In the adjacent exhibition centre, there is a plethora of stands where each of the Berkshire portfolio companies showcase and sell their merchandise, often for a discount to shareholders. Next time I would try to go on the Friday, as on the day of the meeting, the queues are long, and much of the merchandise is sold out.

VIP Guests and Opening Remarks

As 8:00 AM approached, a hush fell over the crowd. Several high-profile guests arrived and took their places in the VIP section, including:

• Tim Cook – CEO of Apple
• Bill Gates – Co-founder of Microsoft
• Hillary Clinton – Former U.S. Secretary of State

Just before the hour, Warren Buffett himself emerged from behind a drawn curtain to resounding applause and took his seat on stage.

At 8:00 AM sharp, Buffett opened the proceedings by welcoming attendees, the Board of Directors, and his distinguished guests. In particular, he acknowledged Tim Cook, praising him for having “made more money for Berkshire than I have.” It was a light-hearted yet telling remark—Apple remains one of Berkshire’s most successful and strategic investments, though it has reduced its holdings significantly in recent years.

1. Tariffs and Global Trade

Buffett expressed disappointment with the Trump-era tariffs, emphasizing that trade should not be weaponized. He reinforced his belief in comparative advantage, the idea that countries benefit when they focus on producing goods and services they’re most efficient at. Buffett remarked that the U.S. would continue to benefit from allowing other countries to produce goods more cheaply, rather than imposing heavy taxes on the imports.

2. Japanese Trading Houses

Berkshire has invested in five major Japanese trading houses:

• Mitsubishi Corporation
• Mitsui & Co.
• Itochu Corporation
• Marubeni Corporation
• Sumitomo Corporation

Although initially capping its holdings at 10% in each, Buffett suggested that they are in discussions to potentially lift that threshold. He stated the investments are going extremely well and are intended to be held long-term.

Importantly, Berkshire has hedged currency risk by taking out Yen-denominated loans at near-zero interest rates, while the stocks themselves offer dividend yields that exceed the cost of debt, creating a positive carry.

3. “Turn Every Page”

Buffett reiterated the importance of curiosity and thoroughness in investing, quoting the mantra “Turn every page.” This means digging deep, exploring every detail, and leaving no stone unturned when researching a company or opportunity. It is on the pages most people don’t read that often provides the greatest insights. 

4. Cash and Capital Allocation

Berkshire is currently sitting on $335 billion in cash and cash equivalents, making up about 27% of its total assets (double its long term average), and owns roughly 5% of all outstanding U.S. Treasury bills.

A shareholder questioned whether this large cash reserve was:

• A strategy to de-risk in the face of high market valuations, or
• A move to give Greg Abel, Buffett’s successor, a clean slate.

Buffett dismissed both notions. He explained that investment opportunities do not appear in an orderly fashion, and having cash on hand allows them to act decisively when truly extraordinary opportunities arise.

5. Real Estate vs. Stocks

Buffett explained why real estate is less attractive than stocks for Berkshire:

• Complexity – Real estate transactions involve lengthy negotiations and multiple stakeholders.
• Time – Unlike stocks, which can be bought instantly, real estate deals take time—during which market conditions may change.
• Legal burden – Every clause in a real estate deal must be scrutinized.
• Capital cycles – Properties built during booms may hit the market during busts.

Buffett added that Charlie Munger, despite a strong background in real estate, ultimately concluded that stocks offered superior opportunities.

6. Artificial Intelligence and Insurance

Ajit Jain, Vice Chairman of Insurance Operations, addressed AI’s potential impact on Geico and the insurance industry.

• Berkshire is not a first-mover in AI.
• The company prefers to observe the developments and adopt technologies that prove effective.
• Jain acknowledged that AI could reshape underwriting and pricing, but they are proceeding with caution.

Buffett added a touch of wit, stating that he wouldn’t trade anything developed in AI for Ajit’s judgment and experience—a testament to Berkshire’s enduring focus on human capital.

7. Portillo’s Confusion – A Case of Mistaken Identity

A question from the audience referenced the supposed acquisition of Portillo’s, a Chicago-based food company. The question took Buffett and Abel by surprise, as none of them were familiar with the deal, for good reason. The acquisition had been made by Berkshire Partners, a private equity firm completely unrelated to Berkshire Hathaway.

Buffett responded with good humour, noting that he would certainly recognize the name of any portfolio company held by Berkshire Hathaway. He shared that he reviews between 50 and 60 financial statements per month, covering the vast majority of Berkshire’s subsidiaries and associates every quarter. This moment served as a subtle reminder of Buffett’s hands-on, detail-oriented and “turn every page” approach to overseeing the sprawling Berkshire empire.

8. A Formative Lesson from Jay Pritzker

Warren Buffett shared a lesser-known but formative investing story from the early years of his career, involving Jay Pritzker, the legendary founder of the Marmon Group.

In 1954, at just 24 years old, Buffett attended the shareholder meeting of Rockwood & Company, a Brooklyn-based chocolate manufacturer. Buffett turned up (as he would) being the only shareholder that attended the meeting, where Pritzker proposed an unusual idea: to allow shareholders to exchange their stock for cocoa beans, a creative plan to capitalize on rising cocoa prices and reduce the company’s outstanding shares in a tax-efficient manner, due to some legislative changes that occurred in the 1954 tax code.

Buffett, intrigued but confused, approached Pritzker afterward and honestly admitted he didn’t understand the strategy. Pritzker graciously invited him for coffee to explain it further. That conversation sparked an epiphany, Buffett recognized a clear arbitrage opportunity.

He quickly began buying Rockwood shares, exchanged them for warehouse receipts of cocoa beans, and sold the beans in the commodities market, all while incurring minimal costs (he quipped that the biggest expense was New York subway tokens). The trade earned Buffett a tidy profit and proved to be a pivotal moment in his investing education.

In reflecting on the episode, Buffett emphasized several timeless lessons:

• Curiosity and humility are strengths.
• Admitting when you don’t know something is often the gateway to learning.
• Genuine conversations and relationships can lead to extraordinary insights.
• The best ideas often come from unexpected places, if you’re willing to “turn every page.”

This story reinforced Buffett’s overarching message: that lifelong learning, humility, and genuine inquiry are the most valuable tools in any investor’s toolkit.

8. Patience, Preparedness, and Acting Decisively                 

Buffett emphasized one of his central investment philosophies: the key to long-term success is patience. Great opportunities don’t present themselves often but when they do, you must act swiftly. Being prepared is what enables fast action. He advised that patience doesn’t mean being idle, it means doing the work ahead of time, so you’re in a position to say “yes” or “no” immediately when the moment comes.

He illustrated this with a simple yet powerful anecdote: Berkshire once acquired a business for $6 million. The company held $2 million in cash, $2 million in real estate, and earned $2 million in pre-tax profits, a remarkably straightforward and attractive opportunity. Buffett pointed out that their ability to act quickly was a direct result of being ready and trusted.

He also shared that Berkshire never sought institutional capital. Instead, the firm built its capital base by earning the trust of individual investors over time. In Buffett’s view, trust is an invaluable asset, especially in investing, where speed and credibility can make or break a deal.

9. Telematics and the Evolution of Insurance

Ajit Jain, Vice Chair of Berkshire’s Insurance Operations, addressed a question about telematics, the use of technology in vehicles to collect driving behaviour data and price insurance accordingly. Telematics allows insurers to match premium rates more accurately to individual risk based on real-world data, such as braking habits, speed, and mileage, rather than relying solely on demographics or historical records.

Jain candidly admitted that Geico had been behind the curve in adopting telematics. However, he explained that the company has since caught up with competitors in integrating telematics into its underwriting models. This has had a material impact on performance:

• The combined ratio (a measure of underwriting profitability) has improved to below 80%, an exceptional level in the insurance industry.
• Geico has also undergone a workforce reduction of approximately 30,000 employees, reflecting greater automation and operational efficiency.

Jain and Buffett’s comments here reflected a broader theme from the meeting: while Berkshire may not always be the first mover in adopting new technologies, it prioritizes effectiveness over haste, choosing to act decisively once it has high conviction in a strategy’s merit.

11. On Bosses and Mentorship

Buffett reflected on his professional journey and noted that he’s had five bosses throughout his life, each of whom he enjoyed working with. His advice to the audience was simple but powerful:

“Be very careful who you work for, because you will tend to take on their habits.”

He stressed the importance of seeking out not just a good job, but a great boss. If you work hard and persist, Buffett believes you’ll eventually find someone worth learning from a mentor whose example can shape your values and long-term success.

12. On the U.S. Dollar and Currency Risk

A shareholder asked about investing unhedged in foreign stocks, referencing Berkshire’s Yen-denominated investments and corresponding Yen borrowings. Buffett offered a firm response:

“I wouldn’t want to own anything in a currency that’s going to hell.”

He expressed concern about U.S. fiscal policy, warning that governments tend to devalue their currency over time. While not explicitly bearish on the dollar, he hinted at unease about the long-term trajectory of U.S. debt and spending.

Greg Abel added that Berkshire’s investments in Japan (e.g., the five major trading houses) were made with confidence in the underlying companies, and that borrowing in Yen was an additional advantage, given the near-zero interest rates and positive dividend spread.

13. Investing in Emerging Markets like Mongolia

Buffett was asked whether he would consider investing in frontier markets such as Mongolia. His response focused on macro stability and business climate. He advised that any country looking to attract institutional capital should aim for:

• A reputation for being business-friendly
• A stable and trustworthy currency
• Low and predictable inflation

He acknowledged that people do make money during episodes of hyperinflation, but clarified:

“That’s not for us.”
This highlights Berkshire’s bias toward long-term stability and capital preservation over opportunistic bets in volatile environments.

15. Advice for Young Investors

Buffett emphasized the critical role of your associations in shaping your life and career:

“Your life will progress in the general direction of those you associate with.”

He advised young investors to:

• Surround yourself with people who are better than you.
• Seek out smart, helpful individuals and enterprises.
• Find a job you would do even if you didn’t need the money, something meaningful that you enjoy.
• Avoid associations that encourage unethical or questionable behaviour.
• Focus on building genuine, mutually beneficial relationships.

This advice underscores the importance of character, integrity, and passion in long-term success.

16. Dealing with Major Setbacks and Low Points

On overcoming adversity, Buffett shared a simple but powerful mindset:

“Focus on the good things that happen.”

He acknowledged that life is often wonderful, but everyone encounters bad breaks from time to time. Maintaining perspective and appreciating the positives is key to resilience and long-term happiness.

17. Impact of Autonomous Driving on Auto Insurance

Buffett discussed how autonomous driving technology will disrupt the auto insurance industry:

• The current model is driver-risk-based, focusing on individual driver behaviour.
• With self-driving cars, responsibility will shift towards product liability, placing more onus on manufacturers and software providers.
• While the frequency of accidents caused by human error is expected to decline, repair costs may rise significantly due to expensive technology and sensors.
• The net effect on insurance costs remains uncertain.
• Buffett likened this uncertainty to homeowners insurance in Nebraska, where there is no perfect solution, as it is currently unprofitable to underwrite housing insurance, but a practical point is eventually reached where action must be taken.

18. Share Repurchases

Buffett explained why Berkshire Hathaway has not repurchased shares this year:

• The recently introduced 1% tax on share repurchases affects large buybacks.
• He cited Apple’s repurchase program as an example: Apple bought back $100 billion of its own stock and paid $1 billion in taxes due to the new levy.
• Buffett implied that Berkshire is evaluating the cost-benefit of repurchases under this new tax regime.

19. Recommended Documentary

Buffett recommended shareholders watch the documentary:

“Becoming Katharine Graham”

Though he did not elaborate much, the recommendation highlights Buffett’s appreciation for leadership stories and those who navigate complex business and media landscapes with integrity and vision. I have checked on my Amazon prime app but the show doesn’t seem to have landed in the UK yet.

20. Focus on Balance Sheets Over Income Statements

Buffett revealed that he spends significantly more time analyzing balance sheets than income statements.

• He typically reviews balance sheets over an 8-10 year horizon before diving into income statements.
• The reasoning: It is harder to hide issues on the balance sheet compared to the income statement, which can sometimes be more easily manipulated or subject to accounting adjustments.

21. The Importance of Teachers and Intellectual Honesty

Buffett emphasized the value of those who teach you something meaningful:

• Remember the people who teach you valuable lessons and forget the rest.
• He echoed Charlie Munger’s advice that when you disagree with someone, you should strive to state their position better than they can. This demonstrates intellectual rigor and respect for opposing views.

22. Capital Allocation and Maintaining Berkshire’s Reputation

Capital allocation remains a cornerstone of Berkshire’s strategy:

• Maintaining Berkshire’s reputation and its fortress-like balance sheet is paramount.
• The large cash pile is a strategic asset, ensuring independence and avoiding reliance on banks or external parties.
• Managing and understanding risk is key to decision-making.
• Berkshire’s operating companies generate steady cash flows, and internal reinvestment is prioritized.
• Buffett mentioned considering a $10 billion acquisition recently, though he did not disclose which company was involved. (We speculated it could have been Hershey’s).

23. How to Find Good Companies: Ask the Owners

Buffett advised a practical approach to learning about companies:

• Speak directly to company owners or insiders whenever possible.
• Ask them:
  • If you were stranded on a desert island with only one stock from your competitors, which would you choose and why?
  • If you were to short your net worth on a stock in the industry, which one would it be and why?
• He observed that today, investor relations departments are often scripted and focused on pushing stock purchases, making it harder to get through to key decision-makers and uncover real insights.

24. Deals and Market Sentiment

• The best investment deals happen when people are most pessimistic.

25. Tech Businesses Becoming More Capital Intensive & The Investment Management Game

• The property and casualty insurance sector is unusual because you get capital upfront (premiums), which you can immediately deploy and only need to reserve funds later for claims.
• Capital serves as a guarantee fund but can also be used to acquire other businesses.
• Buffett said managers have grown wealthy by managing other people’s capital, charging fees typically around 1%.
• He cited that if someone had paid Berkshire 1% on their capital, they would have paid $8 billion over the past year.
• The key in investing and life is using other people’s capital effectively.

26. Pursue Fascination and Learn from Outstanding Teachers

• Buffett advises to find something that truly fascinates you.
• Seek out outstanding people who can teach you and who are willing to generously share their time and knowledge.

27. DOGE efforts to reign in US Fiscal Deficit and Inflation

• Buffett called a 7% fiscal deficit unsustainable, suggesting it should be closer to 3%.
• He warned to avoid runaway inflation at all costs.
• While acknowledging the difficult job ahead to fix fiscal imbalances, Buffett stated he wouldn’t want the responsibility of solving these problems.
• He emphasized that currency devaluation would be the cause of any major economic downfall

28. Nuclear Weapons – The Greatest Risk to Mankind

• Buffett has long regarded nuclear weapons as humanity’s biggest risk.
• Currently, nine countries possess nuclear weapons, with Iran possibly becoming the 10th.
• He commented that even a figure like Benjamin Franklin would struggle to manage this reality.
• Despite these risks, Buffett believes living in the USA remains the best place and time, but maintaining a stable currency is fundamental.

29. Greg Abel’s Management Style & Value Creation

• Greg Abel focuses on deep understanding of business models, risks, and opportunities.
• He emphasizes curiosity, asking questions, and actively engaging with portfolio companies.
• Example: Geico’s ongoing tech transformation, such as building in telematics into its business model and in the future incorporating AI into its underwriting practices.  
• Abel believes consistency in behaviour is critical, managers must not play self-serving games or behave differently from what they expect from others.
• Good leadership cascades down, and bad leadership eventually leads to poor behaviour across the organization.

30. Healthcare Venture – Amazon, Berkshire, JP Morgan (Haven)

• In 2018, the three companies launched Haven, aiming to improve healthcare for their US employees via technology and data-driven cost reduction.
• Haven was later disbanded due to the entrenched challenges in transforming the US healthcare system.
• Buffett likened healthcare spending (~20% of US GDP) to a “Tapeworm”—a large, inefficient drain on resources.
• He believes only government intervention can change the system, but the government currently has little incentive to do so.

31. Investor vs. Business Operator & Leadership Transition

• Buffett answered whether it’s easier to be an investor or a business operator, stating it’s much tougher to be an operator.
• Being an investor typically involves sitting in a room allocating money [and playing bridge from time to time], which is easier compared to the day-to-day challenges of running a business.
• He’s had the privilege of working only for bosses he admired, having had five excellent bosses in his life.
• Buffett emphasized the luxury of choosing how to spend his time versus the demands on an operator.

Conclusion

• Surprise announcement: Greg Abel will become CEO of Berkshire Hathaway at year-end. This caught almost everyone (including Greg Abel) by surprise, with most assuming Buffett would continue in his role until the end.
• Buffett will remain available to advise on larger acquisitions.
• He closed with a cautionary hope that the government will view Berkshire as an asset, not a liability.

Post-Meeting Activities

After the Berkshire Hathaway Shareholders Meeting, our group (which had expanded to a Venezuelan and a Spaniard) headed out of town to a less crowded restaurant where we enjoyed T-bone steak and chips while debriefing on the day’s events. On the way back, we stopped at the Nebraska Furniture Mart, a famous Berkshire institution founded by Rose Blumkin, an immigrant from Belarus who worked until age 104. Buffett admires her toughness and business philosophy:

“Sell cheap, tell the truth, don’t cheat nobody.”

Due to the long queue and hot weather, we skipped the Berkshire BBQ and instead went to the Marriott Hotel for the Giverny Capital cocktail evening, rounding off the day with some relaxed networking.

The Berkshire “Invest in Yourself” 5k

The next morning started early for the annual Berkshire 5k race, held in partnership with Berkshire subsidiary Brooks. This event, initiated in 2013, promotes a healthy lifestyle among shareholders and attendees.

• I completed the race in 21:42 minutes, placing 128th out of 2,796 runners—a record turnout this year.
• Given minimal training, I was pleased with my performance and plan to target a sub-21-minute finish next time.
• The winning time was an outstanding 14 minutes, achieved by one of the Giverny Capital analysts.

Markel Brunch

Directly following the 5k, Markel host an open brunch at the Marriott, where the board gives an update on company performance. Simon Wilson, the new British CEO of Markel, presented candidly, admitting that recent underwriting performance and deals have been sub-par. The company is focusing on investments in talent and technology to keep pace with growing competition.

In comparison with peers like Kinsdale, RLI, Chubb, Berkley, and Arch, Markel’s combined ratio stands at 94.7%, which is significantly higher than Chubb’s 78.7% and Geico’s approximate 80%. The combined ratio is a key insurance KPI measuring underwriting profitability by adding the loss ratio (claims paid as a percentage of premiums earned) and the expense ratio (operating expenses as a percentage of premiums earned).

Reflections

The long drive back through the mid-west to Chicago presented much time for thinking and reflecting on the shareholder meeting.

Warren Buffett has lived a truly remarkable life. I think a lot of his financial success is attributed to finding out what he was good at early in life (making money and doing deals), and getting started early. Coupled with this, he has maintained a simple, healthy (no alcohol, lots of Coca-Cola and McDonalds) and frugal lifestyle, avoided excessive risks to remain in the game, maintained an impeccable reputation, developed a set of principles to live by and to guide decision making, and had a bit of luck along the way.

To be able to continue allocating capital, managing investments, dining at Gorats, and playing bridge, whilst still living in the same bungalow in Omaha, until the age of 94 and counting, is many a value investors dream life.

Will the Berkshire Shareholders Meeting be the same in the future? Of course not. It wasn’t after Charlie passed, and it won’t once Buffett is no longer CEO. But like all things, it will evolve, with Greg taking over as CEO.

How will Greg Abel perform as CEO? The share price dropped 5% on the Monday following Buffett’s announcement that he will step down. That the price didn’t drop more is reflective of the markets confidence in Abel. Having worked with Warren for a couple of decades or so, he clearly has been trained well and has right balance of temperament, values and abilities. Much of Abel’s focus to begin with is likely to add value on the operational side.  

It was a memorable, though exhausting few days in Omaha. Just when your body has grown accustomed to the US time zones, it is time to travel back home and recover from the jet lag. The days in Omaha start early and end late with many events happening around the main shareholder meeting.

The trip is also quite expensive. Flights and hotels make up the bulk of the costs, and prices of both are at least doubled or tripled during the Berkshire meeting week, due to the limited supply of hotel rooms/airline seats and excess demand for them.

Is there value in going, compared to watching the various meetings online? In terms of learning, it is probably easier to listen to the meetings in real-time or on recordings and certainly more cost effective. But in terms of the networking opportunities, you can’t beat being there in person. In addition, with so much content online, will you actually have the discipline to watch all six hours of the Berkshire shareholder meeting?

For me I set my goal as meeting three new interesting people, three new nuggets of wisdom, and three new stock ideas. Certainly, one nugget of wisdom I found interesting was the “turn every page” principle.

It is incredibly refreshing to attend a conference where you meet strangers who are open to just start a conversation, talk about investing, life etc. I think the reason is that people attending the Berkshire meeting have shared values, they are cut from the same cloth.

It has taken a few weeks to fully assimilate all the new content and ideas from the conference, and follow up with connections made. I recently bought Robert Hagstrom’s New York bestseller “The Warren Buffett Way”, following Robert’s presentation at the Value Investor Conference, and I look forward to perusing this over the next few months.

I hope to have the privilege of attending the meeting again in the future.

The Capitol Building Des Moines, Iowa. Right: Grant Wood’s American Gothic painted on a Carpenter Gothic style house in Iowa (the original painting which I have seen is held in the Art Institute of Chicago).