For decades, Warren Buffett has been the steady hand guiding Berkshire Hathaway, building one of the most successful companies in history.
But at this year’s 2025 annual meeting, the focus shifted. Buffett stepped back. And Greg Abel stepped forward.
It wasn’t just a shareholder meeting. It was a masterclass in how great leaders prepare for the future.
For the first time, Buffett stepped back and handed the reins to his successor, Greg Abel.
It wasn’t a surprise — Buffett has said for years that Abel was the man.
But what stood out was how seamless the transition was.
No drama. No headlines. Just a world-class company doing what it’s always done: thinking long term and executing with discipline.
Lesson for American Prosperity Subscribers
Great companies don’t just grow; they prepare. They build strong leadership, invest in talent, and ensure that someone capable is always ready to take the wheel.
Here are five takeaways from this year’s meeting — and what they mean for us:
No. 1: The Right CEO Is Everything: Warren Buffett made it clear this year — when it comes to leading Berkshire Hathaway into the future, Greg Abel is the right person for the job. And it’s not just because he’s smart or experienced.
It’s because he understands what makes Berkshire different. Abel gets the culture — a deep respect for decentralization, long-term thinking, and doing right by shareholders. He’s not chasing headlines or trying to leave his personal stamp on the company.
Like Buffett, he believes in letting great managers run their businesses and focusing on what really matters: growing value over time. Buffett’s confidence in Abel wasn’t just a passing comment. It was a powerful signal that the company’s values and playbook will outlast any one person — even the greatest investor of all time.
Lesson: At American Prosperity, we only recommend companies led by visionary, high-integrity CEOs. If a CEO doesn’t lead with integrity, we don’t trust them with our money—plain and simple.
No. 2: Buy Great Businesses — Not Tickers:
Buffett didn’t get rich by chasing fads or the hottest stocks on Wall Street. He built wealth the old-fashioned way — by buying great businesses with strong brands, steady cash flow, and long-term staying power.
Take Coca-Cola: Berkshire invested $1.3 billion back in 1988. Today, that stake is worth over $25 billion — and that’s not counting the billions it’s earned in dividends along the way.
Or look at Apple. Starting in 2016, Berkshire bought $35 billion worth of stock. By 2023, it had ballooned to $173 billion.
That’s the power of owning world-class companies and holding on for the long haul.
Lesson: We focus on dominant businesses with outstanding leadership, strong financials, and long-term industry tailwinds.
No. 3: Headlines Are Noise — Ignore Them: Tariffs, elections, rate hikes — none of it got much airtime from Buffett or Abel. Why? Because none of it matters over a 10- to 20-year horizon if you own the right business.
Lesson: We don’t trade headlines. We invest in great business. If the business does we, so will the stock.
No. 4: Patience Pays: Buffett reminded us that real wealth comes from buying great businesses and holding them, not flipping stocks.
Lesson: Time in the market beats timing the market. Let your winners compound.
No. 5: Cash Is a Weapon: Berkshire Hathaway isn’t hoarding cash because it’s scared — it’s doing it because it’s smart. With $348 billion on hand, Buffett and his team have the firepower to act fast when opportunity knocks.
This isn’t about timing the market; it’s about patience and discipline. They’re waiting for what Buffett calls a “fat pitch” — a rare moment when a great business becomes available at a bargain price.
Most investors feel pressure to always be doing something. Not Buffett. He knows that sometimes the best move is to sit tight and let others make mistakes. Then, when the time is right, he strikes — and strikes big.
Lesson: You don’t need to swing at every pitch. In Alpha Investor, we wait for the right business at the right price — and then we move.
Bottom Line?
Buffett spent 60 years building something that would last and a succession plan to match. That’s what great leaders do.
And that’s what we look for at Alpha Investor…Companies that play the long game, invest wisely, and lead with integrity.
Buffett may be stepping back, but the lessons remain.
Now it’s our job to apply them.
Regards,
Charles Mizrahi
Founder, Alpha Investor
