Subject: Re: Buffett Premium
The reason for the stock decline is due to 2 significant fundamental developments.

Both negatives.
Both on Warren’s watch while fully in charge:

1.) Buffett essentially told us the value of our extremely important Utilities/Energy segment had declined materially. He payed LESS to buy back a minority share of it than he did previously. Why? “It’s worth less”.

2.) Operating earnings came in light, even after accounting for currency swings which adversely impacted results.

If Buffett were 20 years younger, the stock 100% would have sold off on Fundamentals disclosed that weekend.

Now layer on top of this: the stock kept rising pre May as investors embraced both risk-off with political uncertainty combined with momentum buying of a “hot” stock. The stock got expensive. Stock buying fed upon itself.

And now that dynamic completely reverses itself— with Risk ON (AI/Tech) and hot momentum money selling as the stock declines. And selling that feeds on itself.

What matters is what’s at the root of all this: Fundamental negative company news—both the CEOs explicit downgrade of a significant segment’s value AND weak earnings.

I think the Buffett-to-Chairman Only 1/1/2026 news only factors in maybe last $10 or so decline where weak/dumb money thinks “see the market’s worried about Buffett!”.

So maybe we’re right back to where we should be valuation wise? Don’t know. I do feel very strongly that IF we’re at or near fair value—Warren is very happy!


A.) Warren has said ideally he’d like the stock to trade AT fair value with owners enjoying exactly the same ride during their ownership period…doesn’t like overvaluation or undervaluation over long term…

And

B.) Starting Points Matter! The worst thing for Greg to inherit is a high stock price. He’ll be judged by a starting date of 1/1/2026. The last thing in the world Warren wants Greg to inherit is an overpriced stock on day 1. It’s not fair to Greg.