Core Insights - Warren Buffett has spent nearly $78 billion on stock repurchases since July 2018, indicating a strong belief in the intrinsic value of Berkshire Hathaway [1][21] - Buffett is set to retire at the end of the year after 60 years of leadership, during which he has achieved a cumulative return of almost 5,942,000% for Berkshire Hathaway's Class A shares [2] - Despite a historically expensive stock market, Buffett has been selective in his investments, focusing on companies with sustainable competitive advantages and strong capital-return programs [5][7] Investment Strategy - Buffett's investment philosophy emphasizes value; he only buys when he believes he is getting a good deal [5] - In recent years, Buffett has sold more stocks than he has purchased, totaling nearly $184 billion in net selling over the last 12 quarters [6] - Notable recent purchases include 17,846,142 Class A shares of Alphabet (GOOGL), reflecting confidence in the company's advertising and cloud services [9][10][11] Company Performance - Alphabet holds a dominant position in global internet search, capturing 89% to 93% of the market share, which enhances its advertising pricing power [10] - Google Cloud is expected to drive significant sales and cash flow growth, with an annual sales growth rate exceeding 30% [11] - Domino's Pizza has been a consistent investment for Buffett, with a focus on brand trust and transparency, alongside a strong growth strategy [13][14][15] Share Repurchase Activity - Berkshire Hathaway's board amended buyback rules in July 2018, allowing for unlimited repurchases if the company maintains at least $30 billion in cash and believes its stock is undervalued [19] - Between July 2018 and June 2024, Buffett has repurchased shares for 24 consecutive quarters, although there has been a 16-month period without any purchases due to high share premiums [21][22] - The share premium to book value has increased to between 60% and 80% during the period of inactivity, indicating a cautious approach to valuation [22] Long-term Confidence - Buffett has consistently expressed confidence in Berkshire Hathaway as a long-term investment, emphasizing the company's ability to thrive in various economic cycles [23][24]

Core Viewpoint - The article emphasizes the importance of controlling drawdowns in investment funds to achieve long-term success, suggesting that lower volatility often correlates with higher returns [4][7][17]. Fund Performance Analysis - From January 1, 2020, to November 20, 2025, the median return of Chinese equity mutual funds was approximately 44.78%, with an annualized compound return of about 6.45% and a median drawdown of 45.12% [5][6]. - Funds with severe drawdowns (60-80%) accounted for 12.53% of the total, with an average return of 26.8%. In contrast, funds with smaller drawdowns (15-30%) represented 10.25% and achieved an average return of 72.25% [6][7]. - The data indicates that 81.28% of funds experienced drawdowns greater than 30%, with over 50.38% facing drawdowns exceeding 45% [6]. Drawdown and Return Relationship - There is an inverse relationship between drawdown magnitude and average return; larger drawdowns lead to lower average returns. For instance, a drawdown of over 30% requires a rebound of 43% to break even [7][8]. - Funds with drawdowns between 15% and 30% achieved the highest average returns, while those with minimal drawdowns (0-15%) had lower average returns [7]. Investor Behavior and Market Dynamics - Investors often struggle to profit from highly volatile funds due to emotional reactions, leading to premature buying and selling decisions [8][10]. - The case of "Wooden Sister" (Cathie Wood) illustrates how significant volatility can lead to substantial losses for latecomers who buy at market peaks [8][10]. Investment Philosophy - The article draws parallels between investment strategies and philosophical teachings from "Tao Te Ching," advocating for moderation and the avoidance of excessive greed [17][20]. - It highlights that enduring volatility is essential for long-term investment success, as evidenced by successful investment firms that manage to withstand significant drawdowns [15][16]. Conclusion - The key takeaway is that achieving a balance between risk and return is crucial in investment, and understanding the costs associated with pursuing higher returns is essential for long-term success [22][23].

Berkshire Hathaway Class A vs. Class B Shares: We’ll discuss Berkshire Hathaway’s history, why the company has two class shares, and its advantages and disadvantages. https://t.co/n3yp3dpR1K ...

Core Insights - Todd Combs' unexpected departure from Berkshire Hathaway has garnered significant attention, coinciding with Warren Buffett's impending transition of CEO responsibilities to Greg Abel [1][2] - Combs will join JPMorgan Chase to lead a $10 billion Strategic Investment Group as part of a $1.5 trillion initiative aimed at enhancing growth and innovation in U.S. companies [2][3] - The changes at Berkshire signal a shift towards a more conventional corporate structure as it prepares for its first leadership transition in decades [10][15] Personnel Changes - Todd Combs, who joined Berkshire in 2010, has been recognized for his contributions, particularly in improving GEICO's operations [3][4] - Nancy Pierce has been appointed as the new CEO of GEICO, moving up from her role as Chief Operating Officer [7] - The position of portfolio manager left by Combs remains unfilled, with uncertainty about how responsibilities will be distributed among existing managers [8][9] Management Structure - Greg Abel is expected to take on overall portfolio responsibility, but the extent of delegation to Ted Weschler is unclear [8] - Berkshire is moving away from its traditionally decentralized management style, with Abel exercising more oversight over non-insurance operations [10][12] - Adam Johnson has been appointed as President of Consumer Products, Service, and Retailing businesses, indicating a more structured management approach [12] Legal and Financial Changes - Berkshire has appointed its first general counsel, Michael O'Sullivan, marking a shift from reliance on external law firms [13] - Chief Financial Officer Marc Hamburg will retire next June after 40 years, with Charles Chang set to succeed him [14] Market Reaction - Berkshire's stock has shown resilience, with a slight decline of nearly 1% following the news, but remains down over 7% from its all-time highs in May [15][16]

Core Insights - Todd Combs' unexpected departure from Berkshire Hathaway has garnered significant attention, coinciding with Warren Buffett's upcoming transition of CEO responsibilities to Greg Abel [1][2] - Combs will join JPMorgan Chase to lead a $10 billion Strategic Investment Group as part of a $1.5 trillion initiative aimed at enhancing growth and innovation in U.S. companies [2][3] - The changes at Berkshire signal a shift towards a more conventional management structure as it prepares for its first leadership transition in decades [10][15] Personnel Changes - Todd Combs, who joined Berkshire in 2010, has been recognized for his contributions, particularly in improving GEICO's operations [3][4] - Nancy Pierce has been appointed as the new CEO of GEICO, moving up from her role as Chief Operating Officer [7] - The role of portfolio manager previously held by Combs remains unfilled, with uncertainty about how responsibilities will be distributed among existing managers [8][10] Management Structure Evolution - Greg Abel is expected to take on overall portfolio responsibility, but the extent of delegation to other managers like Ted Weschler is unclear [8][10] - Berkshire is moving away from its traditionally decentralized structure, with Abel exercising more oversight over non-insurance operations [10][12] - Adam Johnson has been appointed as President of Consumer Products, Service, and Retailing businesses, indicating a more structured management approach [12] Legal and Financial Leadership - Berkshire has appointed its first general counsel, Michael O'Sullivan, marking a shift from reliance on external law firms [13] - Chief Financial Officer Marc Hamburg will retire next June after 40 years, with Charles Chang set to succeed him [14] Market Reaction - Berkshire's stock has shown resilience, with shares falling nearly 1% but remaining down over 7% from their all-time highs in May [15][16]

Core Insights - Berkshire Hathaway, led by Warren Buffett, has transitioned from being tech-adverse to becoming a significant institutional investor in technology stocks, particularly in AI-related companies like Apple and Alphabet [1][2] Group 1: Apple - Apple has not effectively leveraged its resources to establish AI leadership, despite being a major tech company [3] - The rollout of Apple Intelligence has been perceived as haphazard, limited to newer products and enhancing select apps, running mostly in the background [5][6] - The company has not developed a standout AI software, including its digital assistant Siri, which is expected to receive an AI upgrade [6][8] - Corporate culture may contribute to Apple's AI lag, as it prefers in-house development and selective partnerships, aiming for a smooth and stable iOS ecosystem [9][10] Group 2: Alphabet - Alphabet has fully embraced AI and aims to be a leader in the technology, with its deep-learning efforts dating back to the Google Brain project in 2011 [11] - AI is integrated into many of Alphabet's products, enhancing user experience in search functions and Google Docs [13][14] - The company has developed specialized AI hardware, such as tensor processing units (TPUs), and offers these as a service via Google Cloud [16] - Alphabet's Google Cloud unit saw a 34% year-over-year revenue increase to over $15 billion in Q3, driven by strong demand for AI tools and services [17][18]

Core Insights - Berkshire Hathaway's manufacturing operations are crucial for its long-term growth strategy, significantly contributing to revenues, earnings stability, and diversification [1] Manufacturing Operations - The manufacturing segment includes industrial, building, and consumer products, providing reliable cash flows that help mitigate fluctuations in financial markets and insurance results [1] Consumer Products Group - The consumer-products group encompasses brands like Forest River, Duracell, Jazwares, Richline, Larson-Juhl, and various apparel and footwear operations [2] - This sub-segment accounts for approximately 19-20% of revenues and 14% of earnings, with earnings showing continuous improvement despite revenue fluctuations [3] Strategic Importance - Consumer products offer strategic diversification and cyclical resilience, with strong market positions allowing effective pass-through of input-cost inflation, thereby enhancing earnings quality [4] - The segment aligns with Warren Buffett's investment philosophy, focusing on durable earnings power, strong returns on equity, and skilled management [5] Competitor Analysis - Procter & Gamble leverages its portfolio of daily-use products for steady organic growth through innovation and brand investment [6] - Coca-Cola is evolving into a total beverage company, achieving margin expansion through integrated marketing and advanced analytics [7] Stock Performance - Shares of Berkshire Hathaway (BRK.B) have increased by 9.4% year to date, outperforming the industry [8] Financial Metrics - The consumer-products group contributes up to 20% of manufacturing revenues and 14% of earnings, with strong brands helping to offset cost inflation [9] - BRK.B trades at a price-to-book value ratio of 1.53, slightly above the industry average of 1.5, and carries a Value Score of D [10] Earnings Estimates - The Zacks Consensus Estimate for BRK.B's fourth-quarter 2025 EPS remains unchanged at 4.89, with similar stability in estimates for 2026 [12] - Revenue estimates for 2025 and 2026 indicate year-over-year increases, while EPS estimates show a decline [13]

Warren Buffett will soon be out of a job, but at age 95, he's probably not looking for a new one. Longtime admirer Jamie Dimon may have sprung for the next best thing by hiring his understudy. The JPMorgan CEO has hired Todd Combs, one of Buffett's two investment managers at Berkshire Hathaway, to head up a new $10 billion group at the bank and be his special advisor.Bringing Combs into the JPMorgan fold might be as near as Dimon can get to having Buffett himself on his team. "Dimon may very well have vie ...

Core Insights - The portfolio consists of approximately four dozen stocks, with the top 10 holdings representing about 44% of the total value [1][15] Group 1: Top Stock Holdings - SoFi has experienced a remarkable growth of about 400% from its cost basis, becoming the largest position in the portfolio due to its stellar growth and profitability [4] - MercadoLibre is recognized as the "Amazon of Latin America," with significant potential for growth in e-commerce and fintech sectors in its key markets [5] - General Motors is viewed as undervalued and overlooked, now ranking as the second-largest electric vehicle manufacturer in the U.S., with potential benefits from lower interest rates [6] - Realty Income is highlighted as a top dividend stock with a 5.7% yield and a strong track record of income growth, owning over 15,000 properties [6] - Pinterest is enhancing its e-commerce capabilities and utilizing AI for user experience improvements, showing impressive user growth despite facing international advertising challenges [8] - Berkshire Hathaway is noted for its diverse portfolio of over 60 subsidiaries and a stock portfolio exceeding $300 billion, maintaining strong cash reserves [9] - Dream Finders Homes is positioned to benefit from pent-up demand for entry-level homes, focusing on affordable markets and effective capital allocation [10] - Kinsale Capital Group specializes in specialty insurance products with a strong profitability track record, presenting a buying opportunity after a recent pullback [11] - Walt Disney is recognized for its profitable theme parks and valuable intellectual property, with significant profit potential in its streaming strategy [12] - Howard Hughes Holdings focuses on real estate development, creating value through master-planned communities and commercial property ownership [13] Group 2: Portfolio Composition and Strategy - The portfolio is heavily concentrated, with the top 10 stocks making up 44% of the total account value, reflecting high conviction in these investments [15] - The investor plans to diversify and build smaller stock and ETF positions using new deposits in 2026 [15] - The portfolio also includes substantial ETF holdings, particularly in Vanguard index funds, which would rank among the largest holdings if included [14]

Greg Abel is setting up his executive team and Todd Combs is moving to JPMorgan Chase.In this video, Motley Fool contributors Jason Hall and Jeff Santoro explain the series of major executive changes at Berkshire Hathaway (BRK.A +0.99%)(BRK.B +1.03%), including key investor and GEICO CEO Todd Combs heading to JPMorgan Chase (JPM +2.34%) for a newly created role.*Stock prices used were from the afternoon of Dec. 8, 2025. The video was published on Dec. 11, 2025. ...