Warren Buffett, the Oracle of Omaha, announces his retirement at the end of the year! Directly from the Berkshire Hathaway shareholder meeting, cash levels hit a new high; will there be a buying opportunity in the next five years?

At the Berkshire Hathaway shareholders meeting in 2025, the Oracle of Omaha, Warren Buffett (Warren Buffett), finally announced that he would pass the CEO position to his successor Greg Abel by the end of the year. This meeting, heralded as the grandest shareholders meeting, also featured many highlights, such as Berkshire Hathaway having dumped stocks for ten consecutive quarters, with cash levels reaching all-time highs. Even with Japan's interest rate hikes, there are no plans to sell stocks, and using "church and casino" as a metaphor for the development of American capitalism. Buffett also discussed the current state of the market, and ChainNews brings you the front-line coverage.

Berkshire Hathaway has dumped stocks for ten consecutive quarters, with cash on hand reaching a new high.

According to a report released by Berkshire Hathaway on Saturday, the company has had more selling than buying in the stock market for 10 consecutive quarters. Berkshire Hathaway dumped stocks worth over $134 billion in 2024, mainly due to a reduction in its largest positions in Apple and Bank of America. As a result of this wave of selling, Berkshire Hathaway's cash holdings reached a historical high of $347 billion.

Choosing Cook as his successor was the right choice by Jobs.

At the beginning of the meeting, Buffett first mentioned that after Apple released its latest financial report, he listened to Cook's conference call on Thursday afternoon, which was the only conference call he listened to. He then jokingly said, "Tim Cook has made more money for Berkshire than I have for Berkshire Hathaway." He also stated that he believes it was the right choice for Jobs to choose Cook as his successor.

Buffett reiterated his opposition to tariff wars.

Turning the conversation, Buffett criticized the ideas of tariffs and trade protectionism, stating: "Trade should not be a weapon." He expressed, "In the United States, we should seek to trade with other countries around the world. We should do what we do best, and they should do what they do best." In this paragraph, he did not mention Trump. Previously, he pointed out that the tariff war is a form of warfare to some extent, and this speech continues that consistent stance.

( Warren Buffett rarely criticizes politics! Commenting on Trump's tariff policy: a form of warfare to some extent )

Berkshire Hathaway plans not to sell its Japanese assets for the next fifty years.

When asked whether he would stop investing in Japanese stocks if the Bank of Japan raises interest rates in the future, Buffett clearly promised not to sell his stocks. He stated, "We will not consider selling these assets in the next 50 years." He added, "For example, Apple, American Express, and Coca-Cola have performed very well in Japan."

He also stated: "The five Japanese companies he invested in, ( ITOCHU, Marubeni, Mitsubishi, Mitsui, and Sumitomo ), have treated him extremely well, and he indicated that the relationships established with these companies are very long-term."

"They have different customs. They have different ways of doing business. This is true all over the world, and we do not intend to change their way of doing business in any way, as they are very successful at it," Buffett said. "We will not sell any stocks. This will not happen even in decades." He continued, "Investing in Japan is in line with our interests."

Buffett has finally retired! Greg Abel has been appointed as CEO before the end of the year.

Buffett stated that Berkshire Hathaway is likely to find opportunities with its available cash within the next five years. He remarked, "One problem with the investment industry is that developments are not orderly. The chances of finding good entry points increase over time, and it’s somewhat like death." He then jokingly mentioned that he plans to hold onto this cash until the leadership transition, which will give his successor Greg Abel enough room to showcase his skills.

Buffett has stated at this meeting that the board will appoint Greg Abel as his successor as CEO by the end of the year. He will still be around to provide assistance, but everything depends on Greg Abel, and it is currently unclear whether there will be any changes to the chairman position.

Grandpa Ba's words to young investors: Happy people live longer than those who do things they don't like.

Warren Buffett advised young investors that finding a way to achieve satisfaction and happiness contributes to longevity. He said, "I believe that happy people live longer than those who are doing things they don't really like."

Buffett: The current market really isn't much.

Regarding the recent market turmoil, Buffett stated, "What has happened in the past 30 to 45 days is really not much." He pointed out that during his 60 years leading Berkshire Hathaway, the company's stock price had halved three times. Therefore, he said that the recent trends in the U.S. stock market should not be seen as a huge shift. Buffett noted: "This is not an extreme bear market or anything like that."

Buffett explains why the balance sheet is key for investment companies.

Then Buffett explained why he believes the balance sheet is the key point in deciding whether to invest in a company. "I spend more time looking at the balance sheet than at the income statement. Wall Street actually doesn't pay much attention to the balance sheet, but I like to look at the balance sheet from eight or ten years ago first, and then look at the income statement, because some things are harder to hide or cheat on the balance sheet."

Why suspend stock buybacks? The inflation reduction act increases the sales tax by 1%.

Buffett stated that one of the reasons Berkshire has paused its stock buyback plan this year is that the Inflation Reduction Act imposes a 1% excise tax on stock buybacks. This makes buybacks less attractive than before. Berkshire's stock price has risen nearly 19% this year, significantly outperforming the S&P 500 index. Class A shares rose 1.8% on Friday, reaching a historic high of $809,350.

Berkshire's successor Greg Abel: Will maintain the consistent investment philosophy of Buffett and Charlie Munger

When asked about his views on capital allocation, especially regarding new business allocation, Berkshire Hathaway's successor Greg Abel stated that the company has a strong set of values worth following, including maintaining its existing reputation. He responded: "The values we hold as a management team are defined by Warren, Charlie, and everyone associated with the company. They possess great values that truly lay a solid foundation for the company's future."

This means he will maintain Berkshire Hathaway's outstanding balance sheet. Greg Abel stated that the company's current large cash reserves are a significant strategic asset, which he can deploy in the future, ensuring that Berkshire Hathaway's success does not depend on any banks or other entities. In addition to investing in excellent operating companies that can generate substantial cash flow, it is also important to correctly understand and manage risks. He will adhere to the investment philosophy that Buffett and Charlie Munger have followed for the past sixty years.

Buffett warns: The U.S. economy must maintain a balance between the church and the casino.

Buffett uses the metaphor of "church and casino" to describe the dual nature of American capitalism, expressing both its economic system's success and potential risks. The church represents the core of American capitalism: an economic system that creates real value. The church symbolizes sound, long-term, productive economic activities, such as business innovation, manufacturing, and services, which provide goods and services to billions of people, drive economic prosperity, and create unprecedented wealth. Buffett emphasizes that this part is the pillar of the American economy, which must continue to be stable and grow over the long term.

The casino represents speculative behavior and short-term profit-seeking activities in the financial market, such as frequent trading in the stock market and derivatives speculation. The casino is full of temptation, where people chase quick wealth, capital flows rapidly, and the atmosphere is lively. However, this part does not always create substantial value and may bring instability. Buffett pointed out that the allure of the casino might cause people to overlook the importance of the church.

Buffett warned that the U.S. economy must maintain a balance between the "church" and the "casino." If there is too much focus on the speculative activities of the casino, ignoring the real economy of the church, it could lead to economic imbalance and even threaten long-term prosperity. He believes that in the coming century, the United States needs to ensure that the church ( real economy ) is not consumed by the casino ( speculative market ).

Buffett mentioned that the reward distribution in capitalism seems "extremely arbitrary" (capricious), implying that wealth distribution is uneven or market outcomes may not reflect true contributions. Speculators in the casino might make short-term profits, while long-term builders in the church may need more time to see returns. This reflects his view of the achievements and imperfections of capitalism.

Warren Buffett recognizes the vision of D.O.G.E, but controlling the government budget deficit cannot be completely resolved.

When asked about the Department of Government Efficiency (D.O.G.E), Buffett stated that controlling the government's budget deficit is a problem that can "never be completely resolved." Buffett said, "Our current fiscal deficit situation is unsustainable for a long time. We don't know whether this means two years or twenty years, because no country has ever been like the United States, but this situation cannot last forever."

Although Buffett did not specifically discuss D.O.G.E, he did state that reducing the budget deficit will be a daunting but important task. Buffett said, "I don't want to do this job, but I think it should be done, yet Congress seems to be not doing this job."

(The Buffett Indicator has recently retreated, will the Berkshire Hathaway shareholder meeting reveal whether Buffett has made any low purchases? )

This article announces that stock god Buffett will retire at the end of the year! Directly covering the Berkshire shareholder meeting, cash levels have reached a new high, and buying opportunities may appear within five years? First appeared on Chain News ABMedia.