Greetings from Omaha, Nebraska.

I’m here with thousands of other investors for the annual Berkshire Hathaway Shareholder Meeting, or “Woodstock for Capitalists.”

But this year feels different.

Warren Buffett, the Oracle of Omaha himself, has stepped aside. So the meeting is taking place under new leadership for the first time in decades.

While the transition has been telegraphed for years, the reality is now here.

The market has already reacted to Buffett’s departure.

Berkshire’s stock has drifted lower following the announcement last year, a signal that investors are asking questions.

The biggest being: Can the next CEO live up to one of the greatest investing track records in history?

The End of an Era — and a Test of Legacy

Buffett and his partner, Charlie Munger, transformed Berkshire from a struggling textile mill into a sprawling empire that owns everything from railroads to insurers to energy companies.

Along the way, it compounded capital at a rate that turned modest investments into generational wealth.

But here’s what most people get wrong…

Buffett and Munger weren’t just “value investors.” They were something much more powerful.

They were common-sense growth investors with extraordinary patience.

To understand what happens next for Berkshire, you first need to understand what made the company great in the first place.

The first pillar was common sense.

Buffett and Munger didn’t rely on complex models or Wall Street jargon. They focused on simple questions.

Does the business make money? Will it still be relevant in 10 or 20 years? Does it have a competitive advantage?

That’s how they ended up buying companies like Coca-Cola — not because it was statistically “cheap,” but because it was obviously dominant.

The second pillar was longevity.

While most investors obsess over quarterly earnings, Buffett was happy to hold positions for decades.

This allowed compounding to do its work. A +20% annual return doesn’t sound extraordinary until you realize what it becomes over 30 or 40 years.

That's how a $1.3 billion investment in Coca-Cola turned into tens of billions — not through timing, but through time.

The third, and most misunderstood, pillar was growth.

Despite the "value investor" label, Buffett's biggest wins came from companies that grew earnings relentlessly over long periods.

After all, the majority of Coca-Cola's return came not from valuation changes but from earnings growth.

That’s a critical distinction.

Buffett wasn’t buying cheap stocks. He was buying inevitable growth at a reasonable price.

Now enter Greg Abel.

Abel is no stranger to Berkshire. He has been inside the machine for decades, helping build its energy business into a powerhouse.

He understands the culture. He understands the discipline. And by all accounts, he is a steady, rational operator.

But he is also very different.

His track record leans heavily toward regulated, capital-intensive businesses — utilities, energy infrastructure — and steady cash flow operations.

These are excellent businesses, but they are not exactly known for explosive growth.

That raises an uncomfortable question…

Does Abel have the same instinct for identifying long-term growth stories that defined Buffett’s career?

What to Expect Out of the New Leadership

There’s another layer here that investors can’t ignore.

Berkshire has always been more than just a stock. It’s been a story. A brand. A belief system.

And at the center of that system was Buffett himself.

For decades, investors trusted Berkshire not just because of the numbers, but because of the man.

His annual letters were required reading. His public appearances moved markets. His presence alone created what many call the “Buffett premium.”

Even today, Berkshire rarely trades at a discount to its underlying assets. Investors are willing to pay up for the quality of the businesses, and the trust in management.

Now that trust must transfer. And that’s not automatic.

If there’s one thing working in Abel’s favor, it’s this: He’s inheriting an enormous pile of cash.

Berkshire is sitting on a record war chest — hundreds of billions of dollars — that have yet to be deployed. Many investors believe this was intentional.

That Buffett, in his final years at the helm, chose patience over action to give his successor maximum flexibility.

In other words, Abel isn’t starting from scratch.

He’s starting with optionality.

History shows that Berkshire does some of its best work in moments of stress.

During the financial crisis, Buffett deployed capital into companies like Goldman Sachs and Bank of America on extremely favorable terms, locking in high returns and reinforcing Berkshire’s reputation as a lender of last resort.

The question now is whether Abel will have, and use, that same playbook. Because how he deploys this capital will define his tenure.

Right now, the market seems to be in “wait and see” mode.

Berkshire’s stock hasn’t collapsed, but it hasn’t rallied either. That tells you everything you need to know.

Investors aren’t abandoning the story. But they're no longer unquestioningly trusting it. They want proof.

So, what should investors be watching this weekend?

Not just the numbers… Not just the guidance… But the mindset.

Does Abel talk like Buffett? Does he emphasize discipline, patience, and long-term thinking? Or does he shift toward a more traditional, conservative operating approach?

More importantly, does he show a willingness to make bold moves when the opportunity presents itself?

Because that’s what made Buffett different. He wasn’t just careful — he was opportunistic.

The Bottom Line

Berkshire Hathaway is one of the greatest investing machines ever built. Its foundation, common sense, longevity, and growth remain intact.

But leadership matters.

And while Greg Abel may be the right person to preserve Berkshire’s culture, the real test will be whether he can evolve it.

Because Buffett won't write the next chapter. It will be written by the decisions that come next.

And with a massive war chest, a shifting market, and the weight of history behind him…

Abel won’t have to wait long to prove whether he’s up to the task.

On a personal note, if you’re also in Omaha attending the Annual Shareholder Meeting, I’d love to meet you.

I’ll be handing out signed copies of a new children’s book I co-authored for charity.

It’s called “The Story of Charlie Munger,” and I wrote it to hopefully pass along some of the timeless wisdom we discussed today to the next generation.

Tomorrow, I’ll be attending VALUEx BRK 2026, an exclusive gathering of investors organized by Guy Spier at the Marriott.

The event brings together some of the sharpest minds in value investing for a day of discussion, networking, and idea sharing ahead of the main meeting.

Then on Saturday morning, you can find me outside the main Berkshire Hathaway meeting venue.

And later that afternoon, I’ll be speaking on a panel at The 12th Annual Global Investor Conference about the future of Berkshire — a fitting topic given everything we’ve just discussed.

If you're in town, come say hello!