Only a couple of minutes remained. Were the rumors about Warren Buffett’s retirement 2025 unfounded? Even if true, I didn’t want to believe them. After all, while he didn’t quite seem himself for parts of the day, Warren Buffett still shared many great lessons. He answered what proved to be the last question of the day — “Is it easier for an investor to be a business operator or a business operator to be an investor?” If retirement was coming, while this was a good question, I hoped the last question would be more meaningful.
However, after answering that question, Warren told us he saw the words, “Five-minute warning! Five-minute warning!” flashing across his screen. Suddenly, I knew the rumors were true. I doubt anyone who was there wanted to hear what came next. Warren Buffett announced his plans to retire at the end of the year, confirming the rumor that many suspected—this would be Warren Buffett’s retirement 2025 moment. He said he had no plans to sell any shares. The crowd rose to its feet and gave him a standing ovation. He said a few more words. He received another standing ovation and left the stage.
Reflecting on Warren Buffett’s Retirement 2025 and the Legacy of Charlie Munger
On Friday, I heard that a friend who has close connections to Buffett heard that there was a 99.99% chance that Warren would announce his retirement at Saturday’s meeting. Charlie Munger passed away less than two years ago. Charlie was honored with a special video and a huge ovation at last year’s meeting. While I have attended almost all of the Berkshire Hathaway shareholder meetings since, unfortunately, I missed Charlie’s last meeting the year before. It was an emotional day (link). You could tell that Warren missed his long-time friend.
We didn’t get a chance to give Charlie the kind of send-off that Warren received this year. Warren deserved the crowd’s expression of appreciation and so much more. While the crowd showed its appreciation for Warren in a way we didn’t get to for Charlie, the moment was bittersweet.
Berkshire has given shareholders (I purchased my first “B” shares in September 1998. I’ve never sold a share. I have added more over the years and have also purchased them for most clients who own individual stocks.) much more than strong returns. No company has an annual shareholders’ meeting that attracts as many people as Berkshire. People fly in from all over the world to hear Warren and Charlie’s wisdom. There are all types of events hosted during the weekend, too. The culture of Berkshire shareholders is unique. The vast majority of those I have spoken with have held their shares for years. They rarely sell. After a short introduction, you can often find yourself immersed in a deep conversation with someone you just met. This typically leads to long-term friendships.
Navigating the Unknown After 2025
A big question for shareholders as well as Omaha residents who benefit economically from the 30 to 40 thousand—or more—who flock to the so-called Woodstock for Capitalists each year is what will happen in the future. This question takes on even more meaning in light of Warren Buffett’s 2025 retirement announcement. Some wonder if Warren will, at least, still be part of next year’s meeting. How many will attend the meeting? (Many attendees travel to Omaha from Asia and Europe.)
I had dinner with a large group of friends Saturday night. Everyone said they would continue to attend. I know I talk to several of those who were at dinner frequently, but I usually only see them at the annual meeting. How long will everyone continue to travel to Omaha each year? Will the pre- and post-meeting events continue? Nobody knows for sure. We will see what happens.
Before sharing some of the highlights from this year’s meeting, I’d like to take a moment to thank Warren—and Charlie—for all they’ve done to foster a wonderful community of value investors. I feel fortunate to be part of this community. I appreciate the friendships I’ve made. I have learned a great deal about investing and life through my association with Berkshire Hathaway, Warren, Charlie, and those whom I’ve met over the years. I hope to continue to benefit from these relationships in the future. I’ve also realized how many of the life lessons shared at the meetings align with what I have put into practice as a Registered Life Planner. Like Warren talks about so often, I am fortunate. I have found work that I truly enjoy. It is my plan to continue to work as a financial advisor for as long as I can. I truly love what I do and appreciate the opportunity to work with my clients.
As Jason Zweig discussed in this aptly titled article, “There Will Never Be Another Warren Buffett.”
Weekend Highlights
I would like to share some of the highlights from the meeting as well as another meeting I attended. Most of these represent moments that aligned with the thought process involved when working with clients to help align their TEAM of resources (Time, Energy, Attention, and Money) with what matters most to them. To help them live their most fulfilling lives.
Vitaliy Kastenelson Breakfast
Friday morning, I attended a breakfast hosted by Vitaliy Kastenelson. Vitaliy manages a hedge fund. He also wrote the book “Soul in the Game: The Art of a Meaningful Life.” Following breakfast, Vitaliy answered questions from the audience.
The first question related to how to avoid confirmation bias. I think about this often when analyzing potential investments. It is important to understand the point of view of those who disagree with you. If you only read things that support your point of view, you will have a narrower understanding of the issue. Changing your mind may also be more difficult.
Vitaliy discussed how looking for confirmation bias is part of being human. We should strive to discover the truth before time does. He stressed the importance of trying to figure out what other people are thinking and understanding why others have a different opinion.
Vitaliy was asked, “How do you stop doing what doesn’t really matter?” It’s your responsibility to figure out what really matters. Once you do, it becomes easier to handle adversity. Don’t do those things that are not part of your why. If you do creative activities, you will always have painful periods. But if it’s meaningful you can soldier through it. Find what has meaning. It will help you get through the tough times.
Our parents instill black and white thinking in us when we’re young (values). As we grow older, it’s up to us to recognize the good and bad in those we see.
As you will read a little later, Vitaly’s view on tariffs aligns with Warren’s. Vitaliy views tariffs as a tax on consumers when they show up in prices. As far as some of the industries that have left the US are concerned, we don’t want those industries in the US. For some goods, it makes sense to have manufacturing in the US from a safety perspective due to factors such as the risk of supply being cut off. In particular, this could apply to some drugs. Semiconductors would be another area of concern.
While there were other good questions, I only want to highlight these.
With Warren Buffett’s retirement 2025 announcement fresh in everyone’s mind, let’s dive into some of the most meaningful insights from this year’s meeting.
Tariffs
Not surprisingly, the first question of the day related to tariffs. In a 2003 Fortune article, Buffett argued for using import certificates to limit trade deficits. At the time, he said the import certificates basically amounted to a tariff. More recently, Buffett called tariffs an act of economic war. Buffett was asked if his view on tariffs as trade barriers has changed, or if he somehow sees import certificates as distinct from tariffs.
Buffett responded that import certificates were distinct, with a goal of balancing imports against exports. This would help keep the trade deficit from growing in an enormous way. He said the certificates were designed to balance trade, as you can make good arguments that balanced trade is good for the world.
Buffett admitted that his import certificate idea went nowhere. He talked about how the US should look to trade with the rest of the world and focus on what it does best. He emphasized that trade should not be used as a weapon. We should want the rest of the world to be profitable, too. Their profits won’t come at our expense. As the rest of the world becomes more profitable, we should, too.
The Importance of Patience
In a question about the importance of being patient, an audience member asked if there was ever a situation in Buffett’s investing career where he acted fast that has benefited him. Buffett said that patience represents a combination of patience and a willingness to do something that afternoon if it comes to you. When a deal makes sense, you don’t want to be patient. You also don’t want to be patient with people who talk to you about things that will never happen. What allows you to make deals quickly? It relates to the work you have done beforehand. Buffett and many of the others at Berkshire read constantly. Doing that allows them to act quickly when they need to.
As part of his answer, Buffett mentioned what a great pleasure it is to have people trust you. This statement resonated with me, as I often think about the level of trust clients must have when they choose to work with me. Apprise’s “About” page says, “At Apprise, we believe it is an honor to work with clients and help them plan for and manage their financial future.”
Advice for Young Investors
Buffett was asked what advice he would give young investors who are looking to develop their investment philosophy. He discussed the enormous importance of who you associate with. He said, “You want to hang out with people that you feel are better than you because you’re going to go in the direction of the people you associate with. Being around high-quality people helps you live a better life than finding someone who makes a lot of money and trying to copy them.
Try to associate with smart people from whom you can learn a lot. He also suggested trying to look for something that you would do if you didn’t need the money. “What you really want to look for in life is something where you have a job you would hold if you didn’t need the money. Buffett said he’s had that for a very long time.
He stressed the importance of not giving up until you find the right people or thing. You can benefit from the compounding of good intentions and good behavior.
At the same time, you need to be wary. The opposite can happen, too. Don’t feel guilty about your good luck if you have it. Don’t want to associate with people or enterprises who ask or tell you to do something you shouldn’t be doing. You want something you will keep doing, whether you need the money or not. This will help you learn how to be successful in both business and life. Buffett also suggested that taking this approach will help you live longer, too. He thinks a happy person lives longer than one who isn’t.
I found this response very meaningful. It took me a long time to start Apprise. I had many different jobs and changed my career focus along the way. I found some bad actors at some companies I worked for. Leaving those roles was a tremendous relief. Now I love what I do. That has helped to improve my quality of life.
Current Market Environment
Buffett said, “What has happened in the last 30-45 days, 100 days, whatever it is, is really nothing.” Three times in the last 60 years, Berkshire has fallen 50% in a fairly short period of time. Nothing was fundamentally wrong with the company in any of those instances. People have emotions, but you need to check them at the door when you invest.
Experiencing Setbacks
Setbacks are a part of life. Usually, people with exceptionally good luck don’t think of it as luck but themselves. Everything in life has been made so much better over time. Focus on the good things in your life over the bad. Bad things do happen. You can get some bad breaks from time to time.
The Importance of the Balance Sheet
Warren said he hadn’t discussed at previous meetings that he spends more time looking at balance sheets than income statements. Wall Street doesn’t pay much attention to balance sheets. He likes to look at them over an eight- or 10-year period before even looking at the income statement. He believes it’s harder to hide or play games with the balance sheet than the income statement. You can learn more from a balance sheet than most people think.
At first, I was a little surprised by this answer. I thought the focus would be on the cash flow statement. I discussed this with some of my friends. We came to the conclusion that since the cash flow statement essentially represents net income plus changes in the balance sheet, by looking at the balance sheet over a period of years, you really are looking at the cash flow statement, too.
Understanding the Opposite Point of View
Earlier, I mentioned confirmation bias. Warren said that Charlie would say you should be able to make a better argument against what you believe than those who already were making that argument. In other words, you should strive to argue their case better than they can.
Having Good Teachers
Buffett talked about how the teachers you have in your life—both formal and informal teachers—make an incredible impression on you. He said, “Having curiosity and finding sympathetic teachers is very important to education.” He also noted that “teachers, in general, love having a young student who’s really interested in a subject, and they’ll spend extra time with you.
Closing Thoughts
I know how fortunate I was to attend this historic gathering, especially as it marked Warren Buffett’s retirement 2025 announcement. I hope you appreciate the taste of what was discussed that I shared this week. Of course, much more was discussed at the meeting than I shared in this blog. I focused on the areas that I found most relevant to those who want to live a more fulfilling life or would like to help those around them do so.
You can read the full transcript of the shareholder meeting here. You can also watch the meeting here.
Like markets, our lives may include many ups and downs, but you don’t have to navigate them alone. Whether you’re feeling calm, uncertain, or somewhere in between, I’m here to listen, answer questions, and help keep your plan on track.
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