What has Warren Buffett been doing since he stepped down as CEO of Berkshire Hathaway(NYSE: BRKA)(NYSE: BRKB)? In his first letter to Berkshire’s shareholders, new CEO Greg Abel talked about that Buffett nonetheless comes into the workplace day-after-day. In an interview with CNBC on March 31, Buffett shed extra mild on his present focus.
After briefly speaking with Buffett about his philanthropic work with NBA participant Stephen Curry and the Glide Foundation, CNBC’s Becky Quick requested him how issues have been totally different now that he’s now not at Berkshire’s helm. Buffett confirmed that he goes to the conglomerate’s headquarters day-after-day. Quick then requested him, “Well, are you still involved in making investments at all?”
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Buffett responded initially with 11 phrases. And I feel these phrases arguably make Berkshire Hathaway inventory a no-brainer purchase proper now.
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So how did Buffett reply to Quick’s query about whether or not or not he was nonetheless concerned in investing for Berkshire? He answered, “Yeah, but I won’t make any that Greg thinks are wrong.” At first look, Buffett’s response won’t appear to be a massive deal. However, I feel they reveal a number of vital factors.
First, Buffett let the world know that he is nonetheless actively concerned in investing Berkshire Hathaway’s cash. He is not coming into the workplace to merely learn the newspaper and speak to workers. It sounds just like the legendary investor is continuous to do what he has performed for many years: poring via firm regulatory filings and researching stocks to seek out potential alternatives to deploy Berkshire’s hefty money stockpile.
Second, Buffett affirmed his belief in Abel as Berkshire’s new CEO. He declared that his successor is now the final word decision-maker on capital allocation. Buffett deliberately strengthened Abel’s authority in an interview that the monetary world was little question watching carefully.
Third, his response offered perception into the brand new working mannequin at Berkshire. Major funding selections now move via two of the best minds in enterprise. Buffett’s monitor report during the last 60 years speaks for itself. Abel has been profitable all through his profession. Buffett advised Quick, “Greg covers more ground in a day than I would in a week, even when I was at my peak, let alone my present condition.”
Do Buffett’s 11 phrases actually make Berkshire Hathaway inventory a no-brainer purchase? I feel so.
It’s vital to do not forget that Berkshire has had a cumulative acquire of 6,099,294% beneath Buffett’s management from 1965 to 2025. That’s 132 occasions better than the cumulative acquire of the (*11*) (SNPINDEX: ^GSPC) throughout the interval.
When Buffett introduced his plans to move the torch to Abel, many questioned if Berkshire’s investing strategy may change. We now know the reply to that query, and it is a resounding, “No.” Buffett’s investing technique stays as related to Berkshire because it was earlier than. That’s nice information for anybody contemplating shopping for the inventory.
Buffett confirmed that Berkshire will proceed to solely purchase shares when their valuations are enticing. Berkshire will solely purchase when Buffett and Abel perceive the companies. This technique enabled Berkshire to generate monumental returns up to now. It ought to work going ahead, too.
There’s a good case to be made that having the best funding technique in place is extra vital to Berkshire than ever. Why? The conglomerate has additional cash than another firm on the planet. At the top of 2025, Berkshire’s money place stood at $373 billion. Buffett advised Quick a few weeks in the past that the corporate’s money stockpile is “not much different than before.” He added that “it’s probably north of $350 billion in cash and Treasury bills.”
Buffett’s 11-word reply to Quick wasn’t simply a quip. It was a message to Berkshire Hathaway shareholders that they’ve the most effective of each worlds: the unparalleled investing knowledge of the “Oracle of Omaha” and the operational experience and power of Greg Abel.
With a time-tested strategy nonetheless guiding its investments and a huge money place, the corporate’s future stays vivid. Berkshire Hathaway remains to be some of the dependable long-term picks available on the market.
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Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
