No. of Recommendations: 30
Much of the early reaction to Greg Abel’s first annual meeting actually shows something important: he succeeded in defining Berkshire Hathaway as it exists TODAY in 2026.
That’s a big deal for our company that remains widely misunderstood.
I’ll add this personally: after decades of following Berkshire, I agree with my friend TexIrish—I learned more from this meeting than any other!
Abel succeeded in truly defining the Berkshire of today versus the insurance company that generated cash to buy stocks which it was in the past.
He redefined what we are:
• a collection of large operating businesses
• plus a handful of concentrated equity holdings that should be thought of as equivalent to subsidiaries (Apple, Coca-Cola, American Express)
That’s how Warren and Greg are telling us to view the company.
When Buffett calls Apple Berkshire’s “best business,” he’s signaling this clearly. If you mentally move Apple, Coca-Cola, and American Express into the “subsidiary” bucket, something important happens:
You naturally put “stock picking” back into proper perspective.
The portfolio stops being the story—and starts being part of the operating structure.
What Abel did at this meeting was make that clear. By painting the full picture.
He highlighted our operating managers and emphasized EXECUTION.
And that connects directly to where I’ve argued our value creation comes from next.
Susan Decker pointed to what, imo, may be our most important lever inside Berkshire today: improving performance within the businesses we ALREADY OWN.
Her example was simple but powerful—bringing BNSF closer to Union Pacific’s efficiency could add roughly $250 million in annual earnings. No acquisitions. No new capital. Just better execution.
And that opportunity isn’t isolated.
Across Berkshire’s portfolio, incremental gains in margins, costs, and asset utilization—applied at scale—can meaningfully increase intrinsic value.
That’s the playbook now:
Not “what do we buy next?”
But “how do we run what we own better?”
Buffett built—and evolved—Berkshire into this structure.
Abel is ideally suited to optimize it. The Jobs to Cook transition is almost textbook.
What did Warren himself say in his one meeting comment yesterday? It was no accident: Jobs and Buffett CREATED.
Cook and Abel can take what’s largely built and drive productivity, efficiency and monetization. The IPhone, IPad, App Store, BNSF, GEICO, National Indemnity—all inherited by Cook and Abel. Who made them money machines? Who cultivated the ecosystems that made those components part of an unstoppable machine? Abel yesterday showcased the connection and synergies of what were perceived as random, idiosyncratic parts—and we said collectively “aha, THATS why we own that!”. With all due respect this communication previously fell short. If it happened at all..
Different phase. Different skill set.
Same compounding machine—now driven more by operational performance than new investments.
I gor ripped here claiming our best days are ahead. I get it. Let me revise: I’m far more excited for the next decade which I think will be more promising than the previous decade.
Curious how others are thinking about this shif
