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Top 9 Important Takeaways from Buffett's Final Year as CEO
Pete Tan
May 04, 2025
While the world is going through a fair number of elections such as Canada, Singapore and Australia, there is another important meeting - the annual general meeting of Berkshire Hathaway!
It was packed with major announcements, candid wisdom, and classic Warren Buffett humour. Here’s a summary of the key takeaways from the 2025 AGM, along with some direct quotes from the Oracle of Omaha himself:
🧓 Buffett to Step Down as CEO by Year-End
After more than six decades at the helm, Warren Buffett confirmed he will be retiring as CEO by the end of 2025.
He recommended that Greg Abel, currently Vice Chairman for non-insurance operations, take over leadership — including capital allocation decisions.
Buffett reassured shareholders about the transition, saying:
“Greg understands capital allocation as well as I do. And he understands the operations far better than I do now. I would still be around and could be useful in a few situations — but the final word will be Greg’s.”
Buffett will remain as Chairman, but without executive authority, signalling a new era for Berkshire Hathaway.
💰 Berkshire’s Record Cash Pile: $347.7 Billion
Berkshire’s cash holdings hit an all-time high of $347.7 billion as of Q1 2025.
Buffett clarified that this was not a move to hoard cash for his successor, but rather a reflection of a lack of compelling investment opportunities:
“We’re not trying to pile up cash... We just haven’t seen anything that makes sense on a risk-adjusted basis.”
He added that Berkshire will continue to be patient and disciplined — even if it means sitting on a mountain of cash for now.
🍎 Apple Stake Trimmed, But Confidence Remains High
Buffett confirmed that Berkshire trimmed its position in Apple, but not due to lack of confidence.
He called Tim Cook one of the best CEOs in the world and even joked:
“Apple’s made us more money than anything — and more than I’ve made for Berkshire!”
Despite the reduction, Apple remains Berkshire’s largest public stock holding, and Buffett emphasized that the business remains “incredible.”
🌐 Views on Trade & Tariffs: A Warning Against Isolationism
Buffett voiced strong opposition to the use of tariffs as a political tool, warning that they could do long-term harm to the U.S. economy:
“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.’”
He highlighted the value of global trade and cautioned against policies that risk isolating America from global supply chains and innovation.
🧾 U.S. Fiscal Health: “This Can’t Go On Forever”
Buffett addressed growing concerns over the U.S. fiscal deficit and government spending:
“You can’t run fiscal deficits indefinitely, not at this level... Something has to give over time.”
While not alarmist, his remarks served as a reminder of the long-term risks associated with unchecked spending and debt accumulation.
📊 No Appetite for “Stupid” Investments
Buffett made it clear that Berkshire won’t chase speculative opportunities, even with ample cash on hand:
“We won’t do anything dumb just to be active. We don’t need to prove anything. If something makes sense, we’ll act. Otherwise, we wait.”
This continues Berkshire’s tradition of value investing discipline, even in an era of fast-moving tech bets and meme stocks.
🗾 Japanese Trading Firms: “Long-Term Hold”
Buffett reaffirmed his bullish stance on the five major Japanese trading houses (Mitsubishi, Mitsui, Sumitomo, Itochu, Marubeni), calling them a long-term play with strong fundamentals.
He emphasized:
“We like their business models, capital discipline, and alignment with shareholders... We have no intention of selling.”
👨🏫 Buffett’s Career Advice to Young Professionals
Buffett also gave some timeless advice during the Q&A:
“Find a job you’d take if you didn’t need the money. Work with people you admire. And never compromise on integrity — yours or theirs.”
It was a fitting reminder of the values that shaped his legendary career.
🇺🇸 Optimism for America’s Future
Despite concerns around fiscal policy and geopolitics, Buffett ended on a positive note:
“The American system works — not perfectly, but better than anything else out there. I still believe our best days are ahead.”
Indeed, while the American system works, it is getting really tricky to invest in the US market. So I have started covering the Tariffs war on my channel. If you want to know how to navigate the market, here is the series.
Pete
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The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.