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Welcome back to the Collective. So, our Co-Founder Leon had the chance to be on-site at the 2025 Berkshire Hathaway Annual Shareholder Meeting in Omaha last week. We know we’re typically focused on startups here, but the lessons learned from the Meeting were too key to not share with our audience.

We aim for this to be the newsletter “for the founders and VCs who read in between the headlines,” so this felt like an opportunity to stay true to this thesis for those who may have missed the inside perspective on what happened in Omaha. The Oracle certainly gave lessons that have ripple effects throughout global commerce, and we’re glad to break it down for you all.

Let’s let Leon take it from here. Here we go!

Omaha, May 2025, As a lifelong Berkshire Hathaway devotee, I found myself amid the buzzing crowd at the 2025 Annual Shareholders Meeting, not just as an investor but as an eyewitness to history. This was Warren Buffett’s 60th annual Q&A session, and it would turn out to be the most poignant one yet. From the moment Buffett and his vice chairs, Greg Abel and Ajit Jain, took the stage, the atmosphere crackled with anticipation. Little did we know we were about to witness Buffett’s formal succession announcement, marking the end of an era. But that wasn’t the only highlight. Over a marathon 4.5-hour Q&A, Buffett and his team offered candid insights on everything from trade wars and inflation to AI and insurance. By day’s end, I walked away with a notebook full of wisdom and 10 core takeaways that I’m excited to share.

In this article, I recount the experience from inside the arena and distill the key insights Buffett imparted. These include his plans for leadership succession, perspectives on macroeconomic challenges like tariffs and deficits, the rationale behind Berkshire’s record cash hoard, and candid views on emerging issues such as AI’s impact, healthcare costs, and climate risks. Sprinkled throughout are direct quotes from Buffett and his colleagues, along with context from respected sources like Reuters and CNBC to underscore each point. Whether you’re a student of investing or simply curious how a 94-year-old legend sees the world, I hope these firsthand observations convey the wisdom and atmosphere of that remarkable day in Omaha.

1. Succession Plan Unveiled: Buffet Passes the Torch to Greg Abel

The climax of the meeting came in its final moments, and it felt electrifying to witness in person. Warren Buffett, age 94, calmly announced that he will step down as Berkshire’s CEO at the end of 2025, recommending Vice Chairman Greg Abel as his successor. This revelation stunned the 20,000+ shareholders in attendance (myself included), even though we knew Buffett couldn’t run Berkshire forever. He explained that “the time has arrived where Greg should become the chief executive officer of the company at year end”, adding that while he’ll “hang around and conceivably be useful,” all final decisions will rest with Abel going forward. In short, Buffett is handing over the “tickets”, full control, to Greg Abel, marking Berkshire’s first CEO transition in six decades.

The room erupted in applause, mingled with bittersweet emotion. Buffett revealed he had informed only his children (both Berkshire directors) ahead of time; even Abel and most board members learned of the succession plan as he announced it. Despite the surprise, the choice of Abel was no shock; he’s been Buffett’s heir-apparent for years. Abel, 62, who built Berkshire’s energy division, stood and modestly told us he was “humbled and honored” by the trust placed in him. There was an outpouring of praise for Buffett from business leaders following the news. Jamie Dimon lauded Buffett for epitomizing “integrity, optimism, and common sense” in American capitalism. Even Apple’s Tim Cook chimed in that “there’s never been someone like Warren”, calling it a privilege to know him.

For shareholders, this moment was historic. Buffett’s extraordinary 60-year run transformed Berkshire from a failing textile mill into a $1.16 trillion conglomerate. Many of us wondered how Berkshire will fare without its legendary helmsman. As one investor put it, “it’s the end of an era… tough shoes to fill.” Yet Buffett reassured us through both words and actions. He emphasized he has “zero” intention of ever selling his personal Berkshire stock, nearly all of which will go to philanthropy eventually, because he’s confident the company’s future under Abel is even brighter. In his own words: “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.” Coming from Buffett, that’s a profound vote of confidence in Abel. It also signals that Berkshire’s distinctive culture and long-term approach will carry on while an era is ending. As a shareholder in the arena, I felt a mix of nostalgia and optimism, grateful for Buffett’s leadership and optimistic that his values will live on through Abel.

2. Trade and Tariffs: Buffett’s Take on Global Economic Cooperation

Another prominent theme at the meeting was international trade and the danger of protectionism. Buffett has never been shy about criticizing counterproductive tariff policies, and he did so again this year in characteristically blunt fashion. He argued that free and fair trade is essential for global prosperity, warning that extreme trade barriers can backfire. “Balanced trade is good for the world… Trade can be an act of war,” Buffett said, cautioning that if countries turn trade into a weapon, everyone loses. In his view, the United States “should be looking to trade with the rest of the world. We want a prosperous world.” This aligns with Buffett’s long-held belief that America benefits when other nations thrive. He noted that when he was born (1930), the U.S. and several countries spent about 5% of GDP on health care, but today the U.S. spends ~20% (a sign of prosperity but also inefficiency, more on that “tapeworm” later). The larger point was that Buffett rejects zero-sum thinking in economics. “The more prosperous the rest of the world becomes, it won’t be at our expense, the more prosperous we’ll become,” he said, emphasizing that a healthy global economy creates opportunities for all.

This stance came in the context of ongoing trade tensions. Buffett has been critical of past U.S. tariff moves. Reuters noted that many see Berkshire as a safe haven amid uncertainty over President Trump’s tariff policies. At the meeting, Buffett didn’t name names but clearly dislikes policies that spark trade wars. He recalled an idea he floated decades ago for “import certificates” to enforce balanced trade, which he saw as preferable to ad-hoc tariffs. Today, he feels even more strongly that tit-for-tat tariffs risk spiraling into economic conflict. His message to leaders: don’t turn trade into war, because “in the United States, we should be looking to trade with the rest of the world”, not fighting with it.

Interestingly, while Buffett champions global trade, he’s also pragmatic about geopolitical risk. One shareholder asked about Berkshire’s brief investment in Taiwan Semiconductor (TSMC), which Berkshire bought in 2022 but sold mainly by early 2023. Buffett acknowledged that rising tensions over Taiwan were “a consideration” in exiting that $4+ billion stake. He noted that TSMC is a well-run company, but geopolitical uncertainty made it hard to hold. This contrasted with Buffett’s comfort in other international investments (like Japan, discussed next). The takeaway: Buffett favors open trade and global investment, but not at the cost of geopolitical instability. He’ll engage with the world, buying stocks in Japan, India, Europe, yet won’t hesitate to scale back exposure if political risks threaten the investment. As he put it, “obviously we wouldn’t want to own anything… in a currency that was really going to hell”. His commentary underscored the importance of trade cooperation and careful navigation of global risks. Buffett’s approach reminds investors to stay internationally diversified but always weigh the macro risk factors (trade policies, geopolitical climate) that can impact our holdings.

3. A $347 Billion Cash Pile: Patience or Missed Opportunity?

One figure that drew gasps in the arena was Berkshire’s record cash hoard, roughly $347 billion. Yes, you read that right. As of this meeting, Berkshire Hathaway was sitting on nearly $350 billion in cash and short-term Treasury bills. This unprecedented war chest has been a hot topic among shareholders and analysts: Why isn’t Buffett investing more of it? Is he overly cautious, or wisely patient? Buffett addressed this head-on, and being in the room, I could sense how passionate he is about capital allocation discipline.

First, Buffett clarified that he’s more than willing to deploy the cash, if and only if he finds the right deals. In fact, he revealed that Berkshire “came pretty close to spending $10 billion not that long ago” on an investment, and that “we’d spend $100 billion” if a truly attractive opportunity arose. The catch, however, is that great opportunities are rare and unpredictable. “The one problem with the investment business is that things don’t come along in an orderly fashion and they never will,” Buffett explained. Unlike an operating business where you can reinvest steadily, investment opportunities tend to come in clumps at irregular intervals. For Berkshire, which prefers big “elephant” acquisitions or stock purchases, this means long periods of waiting. “We’re running a business which is very, very, very opportunistic,” Buffett said, implying that he’s content to hold cash until the timing is right.

He gave a vivid analogy: over his career of 16,000 trading days, true “fat pitch” opportunities might only number a few dozen. If Berkshire were forced to invest a set amount each year, “that would be the dumbest thing in the world,” he quipped. Instead, the conglomerate has made a fortune by not feeling pressure to be fully invested at all times. Buffett reminded us that being flush with cash is a strategic advantage. When markets occasionally go haywire and quality assets go on sale, Berkshire can swoop in with billions (as it did during the 2008 financial crisis and more recently in certain 2020-2021 deals). “Occasionally, very occasionally, but it’ll happen again, we will be bombarded with offerings that we’ll be glad we have the cash for,” Buffett assured. He likened it to a “treasure hunt,” flipping through financial reports, where every once in a while something big appears.

Of course, there’s a flip side: holding so much cash has an opportunity cost, especially when markets are rising. Some shareholders question whether Berkshire should pay dividends or do more stock buybacks with that cash. At the meeting, one even asked if Buffett was keeping cash intentionally to give Greg Abel a smoother start as CEO (Buffett shot that down with a laugh, saying he’s “not so noble” as to hold back just to make Abel look good). The real reason for the cash is caution amidst high valuations, and a lack of what Buffett calls “no-brainers” available. He did note that “it would be more fun if [a big deal] happened tomorrow, but it’s very unlikely… It’s not unlikely to happen in five years”. In the meantime, Berkshire’s cash isn’t idle; it’s parked mainly in U.S. Treasury bills. In fact, Berkshire holds such a large amount of T-bills that it “effectively own[s] nearly 5% of the entire US Treasury market,” according to one analyst’s calculation. Buffett joked that if he had to pick, he’d rather have a mere $50B in cash and loads of bargains to buy, instead of $350B in cash and nothing to do, “but that’s just not the way the business works.”

For everyday investors, Buffett’s approach is instructive. It underscores the value of patience and liquidity. Just because you have cash doesn’t mean you should rush to deploy it in subpar opportunities. It’s okay to wait for the right pitch. Berkshire’s cash pile also provides a considerable margin of safety for the company, a buffer against recessions or market crashes. As a shareholder, I actually take comfort in that, even if returns on cash are low. Buffett’s discipline here is a masterclass: sometimes the best action is inaction, until your strategy and price align. And as he reminded us, “we’ve made a lot of money by not wanting to be [invested] 100% of the time.”

4. U.S. Debt and Deficit: “This Can’t Go On Forever”

Buffett’s folksy demeanor often sugar-coats very stark warnings. One such warning at the 2025 meeting concerned the United States’ fiscal deficit and debt. When a 94-year-old billionaire says something “scares” him, you pay attention, and Buffett indeed noted that America’s fiscal trajectory is unsustainable and worrying. Referencing the federal government’s habit of spending more than it takes in, he declared: “We’re operating at a fiscal deficit now that is unsustainable over a very long period of time.” He didn’t predict exactly when a crisis might hit, “we don’t know whether that means two years or 20 years… but if something can’t go on forever, it will end,” he noted, echoing economist Herb Stein’s famous adage. The sober message: America cannot keep running massive deficits indefinitely without eventual consequences.

Buffett pointed out that the U.S. government is currently running about a 7% annual deficit (relative to GDP), when history suggests ~3% would be more manageable. Piling up debt at this pace, especially in a strong economy, struck him as courting trouble. “It gets uncontrollable at a certain point,” he said of the debt burden, warning that unchecked deficits risk undermining our currency and economy. He reminded us that no nation is immune to the laws of economics, even the mighty U.S. can stumble if it spends far beyond its means. As Buffett put it, “we’ve got a lot of problems always as a country, but this is one we bring on ourselves… If you picked a way to screw it up, it would involve the currency”. In other words, out-of-control debt could lead to high inflation or a loss of confidence in the dollar over time, effectively a self-inflicted wound.

What struck me was Buffett’s mix of concern and realism. He candidly said, “I wouldn’t want the job of trying to correct what’s going on” with U.S. fiscal policy, calling it a thankless task. However, he immediately added that it’s a job that “should be done” for the good of the country, even if politicians hate doing it. (The audience applauded that line, underlining that shareholders share his worry.) Buffett lamented that “Congress does not seem good at doing it”, a gentle way of saying our political system lacks the will to make tough budget choices.

He even invoked history: Paul Volcker’s Fed in the 1980s “kept [runaway inflation] from happening” in the U.S., showing it is possible to avert disaster with the right actions. But we can’t rely on luck or heroics forever. Buffett’s bottom line was that the current path, multi-trillion dollar deficits adding to a national debt above $30 trillion, simply can’t continue forever. At some point, either policy will change or the bond market will force a change.

For investors, this was a heads-up. Rising government debt could lead to higher inflation or interest rates in the long run, eroding the real value of stocks and bonds. Buffett has often called inflation the “enemy” of the investor, and here he implied that fiscal excess could eventually fuel that enemy. Interestingly, he didn’t sound panicked about the immediate term; he reaffirmed his long-term optimism about America (more on that later). But he wants the next generation to be aware of this fiscal imbalance. His advice in a nutshell: don’t ignore the macro big picture. While it shouldn’t deter you from investing in great businesses, you should be mindful that the U.S. can’t deficit-spend infinitely. As I listened, I was reminded of Buffett’s knack for zooming out: he’s playing the very long game, thinking about what ensures the U.S. remains, as he said, “the best place in the world to be.”

Speaking of that optimism, Buffett did sprinkle in that despite these worries, “this is the best place in the world to be,” and he’s never bet against America. So while he delivered a fiscal warning, he still believes in the resilience of the U.S. economy, provided we eventually address the “tapeworm” of deficits eating at it.

5. AI and Insurance: Ajit Jain on Self-Driving Cars & “Waiting to Jump In”

No Berkshire meeting in 2025 would be complete without discussing artificial intelligence (AI), arguably the hottest topic in business today. Specifically, shareholders wanted to know how AI and autonomous vehicles would affect Berkshire’s insurance operations. Ajit Jain, Berkshire’s revered insurance vice-chair, fielded this question, and his response was both pragmatic and fascinating to witness live.

Jain started by acknowledging the enormous potential of AI in insurance. “There’s no question that insurance for automobiles is going to change dramatically once self-driving cars become a reality,” he said plainly. Today, auto insurance (think GEICO, which Berkshire owns) is priced largely on human driver error, how often we crash, and how risky our behavior is. But in a future of reliable autonomous vehicles, “to the extent these new self-driving cars are safer and [have] fewer accidents, that insurance will be less required,” Jain noted. Instead, insurance might shift toward product liability, essentially insuring the car’s manufacturer or software against defects, rather than insuring individual drivers. “We… are certainly trying to get ready for that switch, where we move from providing insurance for operator errors to… providing protection for product errors… in these automobiles,” Jain explained.

This was a striking admission: Berkshire foresees core aspects of its auto insurance business shrinking in the long run due to safer cars. However, Jain doesn’t see this as doom and gloom; it’s just a transformation to adapt to. GEICO and others will likely offer new policies (e.g., insuring a Tesla’s autopilot system failing, rather than a human fender-bender). Berkshire is preparing for that evolution now, so it isn’t caught flat-footed.

On the broader question of AI in insurance (beyond just cars), Jain was measured. He called AI “a real game-changer” for how the industry will assess and price risk, sell insurance, and handle claims. From fraud detection to personalized pricing, AI could revolutionize every step. Yet, and this is key, Berkshire is not rushing in headfirst. Jain actually warned about the hype: “people [can] spend enormous amounts… chasing the next fashionable thing. We are not very good at being the fastest or the first mover,” he said, smiling as he acknowledged Berkshire’s reputation for caution. Instead, “our approach is more to wait and see until the opportunity crystallizes”. He revealed that Berkshire’s insurance units are dabbling in AI pilot projects, but “we have not yet made a conscious big-time effort” or significant investment. Jain’s gut sense is that Berkshire will stay in a “state of readiness”, monitoring AI developments closely, “and should that opportunity pop up, we’ll jump in promptly.” In other words, they’re prepared to be fast followers rather than bleeding-edge pioneers in AI.

Warren Buffett chimed in with a folksy flourish that drew laughter in the arena. He said if he had to choose, he “wouldn’t trade everything that’s developed in AI in the next 10 years” for the talents of Ajit Jain. Buffett declared that if he could either have the best AI in insurance or Ajit making decisions, he’d pick Ajit “anytime”. “I’m not kidding about that,” he added. This was classic Buffett, expressing tech skepticism in favor of human judgment. The crowd of shareholders (many older and less tech-centric) applauded. Buffett’s quip underscored that he trusts his experienced managers more than black-box algorithms, at least for now. It was also a nod to the value of rationality and discipline (traits Ajit has in spades) in navigating new technology; you don’t have to be first, just make the right moves at the right time.

As an attendee, I found this exchange reassuring. Berkshire isn’t oblivious to AI, far from it; they see its disruptive power, but they will not chase fads. They’ll let others test, learn, and leverage their capital when the way forward is more straightforward. It’s a “short-term cautious, long-term opportunistic” approach. And importantly, Buffett and Jain recognize that AI will change insurance profoundly, especially auto insurance. For investors in any insurance business, that’s a vital insight: premiums could shrink if accidents drop, so insurers must evolve new products. Berkshire is already gaming that out. My takeaway was that even in the age of AI, Buffett’s principles hold: don’t fear change, but don’t chase every shiny object either. Stay informed, be ready, and trust in fundamental judgment over hype.

6. Long-Term Bets on Japan: “We Won’t Be Selling in 50 Years”

While the discussion often focused on risks, Buffett also shared a big vote of confidence in an international investment that might surprise some: Japan. In recent years, Berkshire Hathaway quietly amassed multi-billion-dollar stakes in five Japanese trading conglomerates (Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo). At the meeting, Buffett and Greg Abel doubled down on their enthusiasm for these Japanese bets, emphasizing just how long-term their outlook is.

Buffett recounted how this investment came about. Around 2018, 2019, he was paging through a directory of Japanese companies (with print so small even Buffett joked he “can’t read it anymore” at his age). He noticed these five large trading houses selling at “ridiculously low prices,” despite strong positions in the Japanese economy. Smelling a bargain, Buffett spent about a year quietly buying shares of all five companies. By 2020, Berkshire had revealed a ~5% stake in each, which astonished many observers. Over the next few years, Buffett increased those stakes toward 10%. He even traveled to Japan to meet their management. At the AGM, Buffett said, “everything that Greg and I saw, we liked better as we went along” regarding these firms’ management and prospects.

Crucially, Berkshire has no plans to cash out any time soon, or even any time in the next half-century! Buffett asked the Japanese companies for permission to potentially exceed the traditional 10% ownership cap (a sign Berkshire might buy more), and that request is well-received. Buffett then stated emphatically: “In the next 50 years, we won’t give a thought to selling those positions.” Sitting in the audience, I was struck by the “50 years” remark. Buffett envisions Berkshire holding these Japanese stocks forever (or at least well into Greg Abel’s and future successors’ tenure). Greg Abel echoed this, saying they envision holding the Japanese investments “for 50 years or forever,” and are building relationships to do more business with those companies worldwide.

This remarkable commitment speaks to Berkshire’s philosophy of partnering with companies, not trading them. Buffett compared it to owning a piece of a business you’d be happy to hold for decades. These trading companies are like mini-Berkshires with diverse energy, commodities, and consumer products holdings. Berkshire even took advantage of low interest rates by issuing yen-denominated bonds, essentially borrowing in Japan at near-zero rates to fund these equity purchases, a shrewd financial move.

Interestingly, Buffett’s bullishness on Japan contrasts with his caution elsewhere in Asia. This came through when he addressed geopolitical concerns. In April 2023, Buffett had told Nikkei that geopolitics were a factor in Berkshire’s decision to sell most of its stake in Taiwan’s TSMC. China’s claims on Taiwan introduced unpredictability, which Buffett wasn’t comfortable with for such a large investment. In Japan, however, Berkshire clearly feels on solid ground both politically and economically. By reducing exposure to Taiwan and doubling down in Japan, Buffett has effectively reallocated capital from a higher-risk arena to a more stable, friendly environment. It’s a reminder that the nature of the risk matters even for a famously long-term investor. Buffett will ride out market volatility and economic cycles, but not necessarily geopolitical turmoil.

From my seat, this discussion reinforced two lessons. One: Don’t confuse activity with progress. Berkshire sometimes goes years without a significant new investment, then suddenly deploys billions if value beckons (even in places others overlook, like Japan). Patience paid off as those Japanese stocks were bought cheaply and have since appreciated, plus throw off dividends. Two: When you find a great investment, hang on relentlessly. Selling simply because “time passed” is not in Buffett’s playbook. If the thesis holds, he’ll hold for 50 years if need be. Most of us don’t think in half-century terms, but Buffett’s example encourages pushing our horizon further out. After all, one reason he gave for keeping those Japanese stakes was: “We will not be selling any stock. That will not happen in decades, if then.” Longevity and trust are strategic advantages. Berkshire is even open to collaborating with the Japanese companies on joint ventures around the world. That’s a very different mindset from activist investors or rapid traders. In Omaha, I felt that difference; it’s not just about picking stocks, but about building enduring relationships that compound over generations.

7. Why Buffett Avoids Real Estate Deals: “Too Slow for a 94-Year-Old”

A shareholder from California posed a question that made Buffett chuckle: essentially, “Why doesn’t Berkshire Hathaway invest more in real estate?” Given Berkshire invests in almost everything else, stocks, railroads, wind farms, you name it, some wonder if commercial real estate could be a target, especially with recent market distress. Buffett’s answer was vintage wisdom and humor, and it illuminated a key aspect of his strategy: liquidity and simplicity trump illiquidity and complexity.

Buffett started by clarifying that it’s not that he dislikes real estate as an asset; it’s that he sees far better opportunity elsewhere. “In the United States, there’s so much more opportunity that presents itself in the securities market than in real estate,” he said plainly. The stock market offers a steady flow of potential deals. Every day, prices fluctuate and someone may want to sell a piece of a great business for less than it’s worth. By contrast, Buffett noted, real estate transactions are typically one-off and painfully slow. “In real estate, you’re dealing with a single owner or family… It’s an enormous decision for them… For a guy of 94, it’s not the most interesting thing to get involved in something where the negotiations could take years,” he joked, drawing laughs.

He gave examples: In stocks, Berkshire can buy $20 million worth of shares in minutes if a willing seller appears. But in real estate, even after you agree on a price, “when you sign the deal, that’s just the beginning. Then people start negotiating more things, and it takes forever,” Buffett said with a wry smile. He recounted how Charlie Munger, his long-time partner, actually enjoyed the real estate “game” and did a number of property deals in his career. Still, even Charlie, if forced to choose one or the other, “would have chosen stocks” for the greater breadth of opportunities.

From an investor’s perspective, Buffett’s stance is thought-provoking. Real estate often appeals for its tangibility and use of debt to amplify returns. But Buffett cherishes liquidity, speed, and certainty. Public markets give him that. Even for individual investors, the lesson might be: don’t get seduced by complexity if simpler options can achieve similar returns. As Buffett succinctly said, the stock market offers completion and liquidity on your terms, whereas private deals often do not. In 2025, with commercial real estate under pressure (offices especially), one might think Berkshire would bargain-hunt. But Buffett’s answer indicated otherwise; it’s just not their playground. And given his track record, that patience has served Berkshire well. Sometimes, the deals you don’t do are as important as the ones you do.

8. The “Tapeworm” of Health Care Costs: Why Berkshire’s Haven Failed

One of the more somber discussions at the meeting was about health care in the United States. A shareholder (a nurse from New York) asked Buffett why the much-publicized joint venture Haven Healthcare, a partnership Berkshire launched with JPMorgan and Amazon in 2018, ultimately folded without solving our health cost crisis. Buffett’s response was brutally honest: “the tapeworm won.”

To rewind, Buffett has long decried America’s exorbitant health care spending, famously calling rising medical costs “a tapeworm in the American economy”. He provided context at the meeting: In 1960, the U.S. and other developed countries spent roughly 5% of GDP on health care. Today, the U.S. spends close to 20% of GDP on health, far more than any other nation. That delta, an extra 15% of a $25 trillion economy, is enormous. Buffett noted that other countries manage to cover their populations for far less, sometimes by leveraging the high prices paid in the U.S. (e.g., medical innovations developed here). The bottom line: our health care system, for all its excellence in places, is wildly inefficient and costly.

Buffett, along with Jamie Dimon of JPMorgan and Jeff Bezos of Amazon, formed Haven with the hope that a coalition of employers could find ways to reduce costs and improve care for their hundreds of thousands of employees. However, Buffett admitted that despite the resources and brainpower thrown at it, they “made no progress”. Why? The entrenched interests and complexity of the system beat them. “We found out that the tapeworm was alive in every part of the country,” Buffett said wryly. Hospitals, insurers, drug companies, doctors none were particularly keen to disrupt the lucrative status quo. “People generally like their doctor, didn’t like the system,” he observed, but getting any consensus on change proved impossible. In the end, Buffett told Dimon and Bezos, “the tapeworm won.”

His voice had a sense of defeat, a rare tone for Buffett. He’s essentially saying that even with brilliant minds and billions of capital, the private sector can’t crack certain systemic problems alone. Health care in the U.S. might be one of those; it’s deeply enmeshed with government (Medicare, regulations) and culture (expectations of care, defensive medicine, etc.). “It was too entrenched to really do much in the way of change,” Buffett said of the 20% GDP health spending. After only a few pilot programs, Berkshire, Amazon, and JPMorgan eventually disbanded Haven in 2021.

Buffett’s reflections at the meeting acknowledged a hard truth: only the government may have the power to seriously reform health care, but political will is lacking. “It won’t change by itself, and government is the only one that can change it,” he said, noting that would require a majority in Congress willing to take on the task. He recounted how even his father, a conservative congressman in the 1940s, found it advantageous to align with doctors against Harry Truman’s health insurance ideas, illustrating how health reform has been politically perilous for generations.

For investors and professionals, Buffett’s candid post-mortem on Haven is instructive. It shows the limits of even well-intentioned business disruption. Not every problem has a profit-driven solution, especially something as complicated as health care. Buffett, Dimon, and Bezos were humble enough to eventually say, “we failed.” Berkshire likely learned a lot about its own employee health plans, but it couldn’t slay the tapeworm eating at America’s competitiveness. As Buffett put it, “we didn’t kill the tapeworm” and “we didn’t know how to change how 330 million people felt about their doctor or their insurance.”

In personal terms, sitting in the audience, I felt Buffett’s frustration. This is a man who built an empire simplifying complex problems, yet health care confounded him. His takeaway was not one of optimism here but rather a warning that high health costs remain a drag on the economy. He said that when one sector consumes 20% of GDP, it naturally amasses immense political and economic power to resist change. So, as citizens and investors, we should be aware that the tapeworm is still alive. For companies, high health costs are essentially a tax on doing business in the U.S. For policymakers, Buffett’s experience is a lesson in humility. And for the rest of us, it’s perhaps a cue to take charge of our health and wellness where possible, because systemic relief isn’t coming soon. Buffett tried to solve it and couldn’t; that speaks volumes.

9. Powering the Future: Berkshire’s Energy Investments and Climate Stance

The 2025 meeting also touched on energy and climate change, particularly through questions directed at Greg Abel (who oversees Berkshire Hathaway Energy). Berkshire is one of the largest utility owners in America; its BHE division operates power grids in the West, wind farms in Iowa, natural gas pipelines, and more. Shareholders, including a 17-year-old from Omaha, pressed Abel on Berkshire’s plans for renewable energy and reducing carbon emissions. It was an insightful look at how Berkshire balances hefty capital investments, regulatory realities, and a growing focus on sustainable infrastructure.

Abel and Buffett both emphasized that transforming the energy sector is a massive opportunity and challenge that will require cooperation between government and industry. Buffett stated bluntly that the country’s energy infrastructure needs “hundreds of billions of dollars” in investment to meet future demand and modernize the grid. Berkshire is uniquely positioned, with “capital like nobody else has” and deep know-how in generation and transmission. However, Buffett cautioned that Berkshire can’t do it alone. He argued for a model akin to the Interstate Highway project or the WWII industrial effort: “We needed cooperation… we combined private enterprise with the power of government” to get those done. Similarly, “it is important that the United States have an intelligent energy policy,” Buffett said, implying that a coordinated plan (with clear rules and perhaps incentives) is needed to upgrade the grid and shift to renewables.

Abel provided concrete examples of Berkshire’s approach. In Iowa, for instance, Berkshire worked closely with the state government over two decades to expand wind energy. They invested $16 billion in building out wind farms, which now enable Iowa to have some of the lowest electricity rates in the nation. In doing so, Berkshire’s utility retired 5 of its 10 coal units in Iowa, a significant reduction in its carbon footprint. However, Abel pointed out that the remaining coal plants can’t be shut off overnight without endangering grid reliability (he referenced issues seen in Spain and Portugal when intermittent renewables caused instability). “We still need those five coal units to keep the system stable. We cannot have a Spain/Portugal situation,” he explained. This underscores Berkshire’s pragmatic stance on the energy transition: move as fast as you responsibly can, but keep the lights on. Abel stressed that Berkshire’s utilities implement the energy policies desired by each state, “We work hard to ensure balanced outcomes” that satisfy customers and regulators alike.

One notable revelation was Buffett’s remark that Berkshire Hathaway Energy is likely worth less today than a couple years ago due to societal and policy shifts. The public utility business has gotten tougher (perhaps because renewables plus low interest rates squeezed margins, or regulators pushing more aggressively on carbon reduction). Despite that, Berkshire clearly intends to be a major player in building out renewable energy and grid infrastructure in the coming decades. Abel said the capital needs are enormous and Berkshire is ready to invest, but he echoed that a patchwork of 50 state policies makes it tricky without federal coordination. For instance, to build a multi-state transmission line for wind power, Berkshire has to get approvals in each jurisdiction, often encountering “Not In My Backyard” opposition along the way.

From the discussion, my impression is that Berkshire sees green energy as both a responsibility and an opportunity. They’ve proven willing to spend (again, $16B in one state on wind is no small feat), and they recognize the climate is changing (hence the wildfire focus). But they won’t make grandiose pledges without a practical roadmap. When a young shareholder bluntly asked why Berkshire’s utilities still burn so much coal (citing a Reuters report calling them the “dirtiest” in the nation), Abel didn’t flinch. He outlined how Berkshire transitioned Iowa from 70% coal to a much cleaner mix, and how they’ll continue to decarbonize as fast as the grid and regulators allow. It’s a very Berkshire answer, actions over words, gradual improvement over flashy promises.

For readers and investors, the key takeaway is that energy infrastructure is a huge investable theme, and Berkshire is deeply involved. Buffett and Abel believe the U.S. needs an “intelligent energy policy” like we had an “intelligent war policy” in WWII, meaning all hands on deck. If such policies emerge, Berkshire will commit even more capital to renewables, transmission lines, and perhaps novel nuclear or storage tech. If not, they’ll still do what they can within the current system. In either case, Berkshire’s patient capital and engineering expertise position it to profit from the energy transition while helping ensure it is reliable. And one can sense Buffett’s underlying principle here too: when tackling big societal challenges, cooperation between public and private sectors is vital. It’s not ideological for him, it’s pragmatic. As an attendee, I left thinking about how I, too, can balance idealism (wanting a greener world) with practicality (acknowledging the hurdles). Berkshire seems to be doing just that.

10. Buffett’s Timeless Wisdom: Patience, Rationality, and Long-Term Discipline

Amid all the newsy topics, perhaps the most valuable part of the AGM was the refresher on Buffett’s core investing philosophy. Throughout the Q&A, Buffett sprinkled in nuggets of wisdom that drew applause for their clarity and truth. Hearing these live, in Buffett’s own voice, felt almost like attending a masterclass. I’ll highlight a few that resonated, encapsulating why Berkshire has thrived and what principles we can all apply in our financial lives.

“You only have to get rich once.” This is one of Buffett’s classic lines, and he used it to caution against taking undue risks. He noted that many investors who’ve accumulated wealth feel tempted to double down or swing for the fences, sometimes leveraging up or chasing speculative bets. Buffett’s view: Don’t risk what you have and need for what you don’t have and don’t need. “You don’t want to do anything that risks [what you’ve achieved],” he said. This came up in context of market volatility and fancy financial engineering. Berkshire itself carries minimal debt and avoids derivatives that could be dangerous. The lesson for us: capital preservation is rule #1. No matter how confident you are, never bet the farm. It’s okay to miss an opportunity; it’s not okay to ruin your future. As Buffett put it, once you’ve built wealth, protect it; you’ve already won the game, so don’t play in a way that could make you lose.

“Check your emotions at the door.” Buffett has observed countless market cycles, and he reminded us that emotional investing is a highway to pain. “If you get frightened by markets that decline and get excited when stock markets go up… you’ve got to check them at the door when you invest,” he advised. In essence, discipline trumps emotion. This is easier said than done; humans are wired to feel fear and greed, but Buffett (and his partner Charlie Munger) have spent a lifetime training themselves to be unemotional, rational decision-makers. When stocks plunge, they try to see opportunity rather than panic. When stocks soar, they don’t let euphoria lure them into overpaying. Sitting in that hall, surrounded by mostly retail investors, I felt this was a reminder we all needed. In recent years, we have seen wild swings (a pandemic crash, meme stock manias, crypto booms, and busts). Buffett’s advice is evergreen: the market is there to serve you, not guide you. Use logic, not feelings, to drive your choices, or as he likes to say, be “fearful when others are greedy and greedy when others are fearful.”

Patience + Preparedness = Success. A young shareholder asked if there was ever a time Buffett abandoned patience and benefited from acting fast. Buffett grinned and recounted a story from 1966 when an opportunity to buy a company landed in his lap unexpectedly, he and Charlie Munger made a quick decision to grab it (it turned out wonderfully). The moral he drew was: “The trick is, you have to be patient in waiting for the right opportunity, but when it comes, you can’t hesitate.” In his words, “Patience is a combination of patience and a willingness to do something that afternoon if it comes to you… You don’t want to be patient about acting on deals that make sense.” Greg Abel chimed in that during those waiting periods, Berkshire is doing its homework, “never underestimate the amount of reading and work that’s being done to be prepared to act quickly”. This resonated strongly with me. It’s not patience in the sense of sitting idle; it’s active patience, constantly learning, so that when opportunity knocks, you recognize it and seize it. Buffett added, “We will make our best deals when people are the most pessimistic.” That is, when fear is high and assets are on sale, Berkshire’s prior prep and cool head enable it to swoop in. The takeaway: be patient, but not passive. Build your knowledge and watchlist, and keep some liquidity. Then, when a 2008-like moment or even a small-scale bargain appears, act decisively. As Buffett quipped, “you have to be willing to hang up in 5 seconds and you have to be willing to say yes in 5 seconds” for the right deal.

Long-Term Optimism. Despite all the concerns (deficits, inflation, etc.), Buffett ended on a characteristically optimistic note about America and investing. “The long-term trend is up,” he said plainly. He pointed out that in his 94 years, the U.S. has overcome countless challenges, world wars, depressions, crises, and yet our standard of living and markets have kept rising over time. “I would not get discouraged,” he advised, even when headlines are grim. Buffett often calls himself “an optimist about America,” and it showed. He even joked that if he were reborn today, he’d “keep negotiating in the womb until they said you can be in the United States” because being born here has been a blessing for him. It was a charming way to remind us that betting on America’s future, via stocks, innovation, and productivity, has historically been a winning bet.

Sitting in that hall, I felt a profound appreciation for Buffett’s consistency. Year after year, he preaches these same principles, and year after year, they prove effective. The noise and technology may change (AI now, dot-com then, etc.), but human nature and sound strategy remain constant. As we gave Buffett a standing ovation, I realized that beyond any single takeaway, the example of these two men might be the greatest lesson. Their integrity, humility, and rationality are attributes to emulate in any field.

Conclusion: Reflections from Omaha and Key Takeaways

Walking out of the arena into the warm Omaha afternoon, I was overwhelmed, in the best way, by the experience. This 2025 meeting was truly the end of an era, with Buffett preparing to hand over the reins. Yet it also felt like the beginning of a new chapter, with Greg Abel stepping up and Buffett’s philosophy carrying on. I reflected on what I’d learned, not just in facts and figures but also in mindset. A few personal takeaways stood out:

• Invest for the long haul and don’t be swayed by short-term noise. Buffett’s 50-year horizon on Japanese stocks and his calm view of market swings reinforced the power of long-term thinking. Time in the market beats timing the market.

• Cash and patience are strategic assets. Berkshire’s gigantic cash reserve isn’t an embarrassment; it’s a competitive advantage that lets them pounce on opportunity. In our own way, keeping some cash ready and being patient can save us from rash moves and position us to capitalize on downturns.

• Quality leadership matters. Seeing Buffett endorse Greg Abel so fully, and Abel articulating thoughtful plans on energy and operations, reminded me that who is running a company is crucial. At Berkshire, a culture of integrity and excellence persists. As investors, we should seek companies with management teams we’d trust for decades.

• Stay rational, especially when others aren’t. Whether it’s AI hype, crypto mania, or recession fears, Buffett’s steadiness under pressure is a model. Control emotions, stick to fundamentals, and don’t follow the crowd. These timeless rules were only reaffirmed by everything said at the meeting.

• Never stop learning. Buffett, at 94, quoted economists, recalling history from the 1770s to the present, and even joked about Einstein’s 1905 discoveries. His curiosity is unquenched. That’s a big part of why he’s still on top of his game. It inspired me, and many around me, to keep reading, asking questions, and improving our understanding of the world.

On a practical level, I also gained insight into Berkshire’s future game plan. With Abel soon at the helm, I expect a lot of continuity: focus on core businesses, massive investments in infrastructure (maybe we’ll see Berkshire fund the next big power grid or railroad expansion), and the same conservative financial ethos. Ajit Jain’s comments suggest Berkshire will embrace technologies like AI cautiously, but effectively when the time comes. And Buffett’s own remarks on deficits and health care imply Berkshire will be mindful of macro risks but will continue to bet on America’s dynamism overcoming its policy flaws.

For readers, whether you own Berkshire stock or not, the lessons from this meeting are widely applicable. Invest with a margin of safety (Buffett’s cash and “get rich once” mantra). Think independently (don’t let hype or gloom derail you). Focus on businesses, not tickers (Buffett talks about companies like family, not pieces of paper). And perhaps most importantly, be ethical and patient; Buffett’s reputation for integrity literally earns him trust deals that others don’t get. As he said, “One of the great pleasures in this business is having people trust you… that’s really why I work at 94.” Trust is compounding capital, too.

Attending the 2025 Berkshire AGM in person was a pilgrimage fulfilled for me. I came for the finance wisdom and left with life wisdom. Buffett and Munger have set a standard for rationality and good humor under pressure that I aspire to. There was a moment near the end when a teenager from Hong Kong asked Buffett how he could someday work for Berkshire. Buffett’s answer was essentially: be the best version of yourself, develop good habits, integrity, and passion for what you do. Berkshire can teach skills, but it can’t teach character. That resonated deeply. In investing, as in life, character and temperament often determine outcomes more than IQ.

As I headed to the airport, I felt grateful for the free education and the camaraderie of fellow shareholders from around the world. Buffett often says he tap-dances to work every day. After this meeting, we all had a bit of a spring in our step. The Oracle of Omaha may be retiring as CEO, but his wisdom will guide investors for future generations. And as one era ends, the principles he’s taught, patience, rationality, and humility, remain as relevant as ever for anyone aiming to build wealth or a business the right way.

Welcome to the Collective

If you’re new here: welcome! This newsletter is written by Coeus Collective Co-Founders Antonio DiMeglio and Leon Li.

Typically, this newsletter revolves around an idea we can’t stop thinking about (like The Dopamine Economy), a behind-the-scenes look into what our team is working on (like this article about our live podcast recording with Siya Raj Purohit of OpenAI), or even a deep-dive into an iconic company or individual in our industry (as we did today!)

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The Collective

Note: The information in this article is based on the author’s attendance at the Berkshire Hathaway Annual Meeting on May 3, 2025, and includes direct quotes from Warren Buffett, Greg Abel, and Ajit Jain during the event. Additional context and data are provided from the following sources:

• Buffett succession announcement, Reuters

• Buffett on trade and tariffs, Reuters; Buffett Archive

• Berkshire cash holdings, Reuters; Buffett quotes

• U.S. deficit concerns, Reuters

• Ajit Jain on AI & insurance, Meeting Transcript; Insurance Journal

• Japanese investments Meeting Transcript; Reuters (Buffett in Japan)

• Real estate vs stocks, Reuters

• Healthcare “tapeworm” Meeting Transcript

• Energy infrastructure, Reuters; Meeting Transcript

• Buffett’s investing philosophy, Reuters