Warren’s Commission
A recent study indicates that the median investor puts in a hefty six minutes of research before buying a stock. I spent more time than that deciding how many dollars to put under my kids’ pillows when they lost a tooth. There are some investors who are little more deliberate and painstaking when buying a stake in a business. That slow, old fashioned version of “doing your own research” can pay off. It certainly did for Warren Buffett, the Oracle of Omaha, as he steps down after 60 years as CEO of Berkshire Hathaway, one the most successful companies in the world. Let’s just say Berkshire hath a way with investing. “Berkshire shares have skyrocketed 5,502,284% between when Buffett took over what was then a failing textile company in 1965 and the end of 2024.” It’s a sign of Buffett’s steady and ubiquitous presence in his company and the broader investing community that it somehow came as something of a surprise when the 94 year-old announced he was relinquishing the CEO role. Andrew Ross Sorkin in the NYT (Gift Article): The Emotional Moment When Warren Buffett Announced His Departure. “Mr. Buffett, who turns 95 in August, is often described as a symbol of American capitalism. In truth, he is an outlier. He is more the conscience of capitalism, willing to speak uncomfortable truths about the system’s ills while others remained silent. (His public comments on issues like tariffs over the weekend are a prime example.) The billionaire always comes across as a gentleman, and in an age of distrust he has become a trusted figure. Fellow business moguls and government officials admire him because of his success, yes — Berkshire reported $89 billion in net profit last year, and it is one of the biggest buyers of U.S. Treasury bonds — but also because he has appeared unchanged by wealth. He lives in a modest house in Omaha, and for years drove his own car, including to the drive-through at McDonald’s.”
+ “Buffett’s presence here has for decades created its own economic weather. Tens of thousands of people gather in Omaha for the company’s annual investor conference, which alone pumps at least $22 million into the local economy. The Buffett mystique draws curious tourists year-round, too.” As Buffett Steps Down, Omaha Is Grateful—and a Little Worried. (In honor of Buffett, here’s Peyton Manning yelling Omaha over and over.)
+ Philanthropic Thunder: Buffett is also known for giving away a lot of money and encouraging his wealthy counterparts to do the same. “Buffett has said previously that his three kids will distribute his remaining $147.4 billion fortune in the 10 years after his death.”
+ As you probably know by now, not all billionaire stories are about clearly thought out decisions, successful businesses, and philanthropically minded offspring. NYT (Gift Article): Trump Sons’ Deals on Three Continents Directly Benefit the President. “A luxury hotel in Dubai. A second high-end residential tower in Jeddah, Saudi Arabia. Two cryptocurrency ventures based in the United States. A new golf course and villa complex in Qatar. And a new private club in Washington. In many cases these new deals promoted over the last week will personally benefit not only Eric Trump and Donald Trump Jr., but also President Trump himself.” (Eric and Don Jr are gonna be able to buy all the dolls they want this Christmas.)
+ Trump Crypto Corruption Intensifies as Abu Dhabi Firm Invests $2 Billion.
