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End of an Era



After 60 years at the helm, Warren Buffett announced this Sunday that he will be stepping down as CEO of Berkshire Hathaway. Since 1965, Berkshire stock has achieved a compounded annual gain of 19.9%, which is twice that of the S&P, and has delivered a total return of 5,502,284% compared to 39,054% for the S&P. To put it another way, a $100,000 investment in Berkshire in 1965 would have grown to $5.5 billion by 2025, whereas the same investment in the S&P 500 would be worth $390 million. This achievement is extraordinary in itself, but Warren (and Charlie) accomplished by adhering to the highest ethical standards and being role models for a whole generation of investors.

These are our key takeaways from Berkshire Hathaway's 2025 AGM.

On drawdowns and the temperament needed to invest in stocks:

"What has happened in the last 30-45 days, 100 days, whatever this period has been, is really nothing. There have been three times since we acquired Berkshire that Berkshire has gone down 50% in a fairly short period of time – three different times. Nothing was fundamentally wrong with the company at any time. This is not a huge move...But if it makes a difference to you whether your stocks are down 15% or not, you need to get a somewhat different investment philosophy because the world is not going to adapt to you. That’s part of the stock market, and that’s what makes it a good place to focus your efforts if you’ve got the proper temperament for it and a terrible place to get involved if you get frightened by markets that decline and get excited when stock markets go up. I don’t mean to sound particularly critical – I know people have emotions, but you’ve got to check them at the door when you invest."

Below, we observe that Berkshire Hathaway has experienced significant declines over time, but the long term trend of the stock has been upward:


On focus, concentration and avoiding the narrative of the day:

"Charlie always pointed out that we made most of our money out of about eight or nine ideas over 50 years. We talked about it every day and read every report and did everything else. But if you think you can get an idea a day from listening to your broker or reading financial information, forget it. Every now and then you get extraordinary opportunities, and most of the time you don’t have much of an edge."

As investors, it is essential to ignore market noise and speculative hype, focusing instead on a few select ideas that we consider to be outstanding businesses.

On dollar devaluation:

"Fiscal policy is what scares me in the United States because of the way it’s made, and all the motivations are toward doing things that can cause trouble with money. But that’s not limited to the United States – it’s all over the world, and in some places, it gets out of control regularly. They devalue at rates that are breathtaking, and that’s continued...the natural course of government is to make the currency worthless over time."

This is the primary reason we invest in gold via royalty companies!

On patience vs action in investing:

"While we’re looking at opportunities and as you touched on, we want to act quickly, but never underestimate the amount of reading and work that’s being done to be prepared to act quickly. We know that when the opportunity presents itself, whether it be equities or private companies, we’re ready to act, and that’s a large part of being patient – using the time to be prepared"

What do we do at White Falcon? We read. We analyze. We think. Occasionally, when the market turns volatile, it's time to take action. In these moments, we must act decisively.

On trust and life:

"Both Charlie and I just enjoyed the fact that people trusted us. They trusted us 60 or 70 years ago in partnerships we had. We never sought out professional investors to join our partnerships. Among all my partners, I never had a single institution – I never wanted an institution. I wanted people. I didn’t want people who were sitting around having presentations every three months and being told what they wanted to hear. That’s what we got, and that’s why we’ve got this group here today."

At White Falcon, these principles are more than just admired; they are actively woven into the fabric of our investment philosophy. They are the compass guiding our decisions, the analytical lens through which we evaluate opportunities, and the conviction that underpins our actions. Warren Buffett's legacy extends far beyond the staggering financial returns; it is a masterclass in rational, ethical, and patient value creation. As we look to the future, these invaluable lessons will continue to inspire our approach and steer our commitment to our partners.



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