Buffett/Berkshire - general news

[Rigforbadweather]

I have seen Ted's returns for when he ran the public portfolio at Quad C, and for his entire time at Peninsula. He did 44% compounded annually over 10 years at Quad C and 31.5% annually over ~12 years at Peninsula. 

[Munger_Disciple]

1 minute ago, Rigforbadweather said:

I have seen Ted's returns for when he ran the public portfolio at Quad C, and for his entire time at Peninsula. He did 44% compounded annually over 10 years at Quad C and 31.5% annually over ~12 years at Peninsula. 

 

 

Those numbers are stunning to say the least. 

[John Hjorth]

43 minutes ago, Rigforbadweather said:

I have seen Ted's returns for when he ran the public portfolio at Quad C, and for his entire time at Peninsula. He did 44% compounded annually over 10 years at Quad C and 31.5% annually over ~12 years at Peninsula. 

 

Where, @Rigforbadweather,

 

have you seen / observed that?,- In short what's your source for this assertion?

[Rigforbadweather]

4 minutes ago, John Hjorth said:

 

Where, @Rigforbadweather,

 

have you seen / observed that?,- In short what's your source for this assertion?

From the source...A Quad C presentation and the Peninsula letters.

[John Hjorth]

10 minutes ago, Rigforbadweather said:

From the source...A Quad C presentation and the Peninsula letters.

 

Thank you, @Rigforbadweather.

[Munger_Disciple]

This is hilarious!

 

 

 

[DooDiligence]

https://www.businessinsider.com/warren-buffett-berkshire-hathaway-management-leadership-ceo-retirement-hamburg-combs-2025-12

[Eldad]

Just very odd that Greg and company are getting busy centralizing BRK and turning it into every other Corp. 

[Peregrine]

2 minutes ago, Eldad said:

Just very odd that Greg and company are getting busy centralizing BRK and turning it into every other Corp. 

 

How are they centralizing? It's only Combs that has gotten the axe.

[John Hjorth]

9 hours ago, Munger_Disciple said:

This is hilarious!

 

 

 

 

Made my Thursday morning, @Munger_Disciple! lol!

[Eldad]

9 hours ago, Peregrine said:

 

How are they centralizing? It's only Combs that has gotten the axe.

Adam Johnson appointed head of 32 consumer products businesses. Many people say expect more of this to come.
 

[giulio]

Look at how companies like TDG, CSU, PRM, FFH, Nordics acquirers ecc are organized, you need decentralization but also accountability and oversight. Decentralization means decisions are taken at the individual business level, close to the customers, not at corporate, yet business units leaders need to deliver.

What worked for Buffett may not work going forward: CEOs change, industries are dynamic, so BRK needs to adapt as well. I am not losing one second of sleep over this or what Abel has in store, I actually think it is needed.

[73 Reds]

4 minutes ago, giulio said:

Look at how companies like TDG, CSU, PRM, FFH, Nordics acquirers ecc are organized, you need decentralization but also accountability and oversight. Decentralization means decisions are taken at the individual business level, close to the customers, not at corporate, yet business units leaders need to deliver.

What worked for Buffett may not work going forward: CEOs change, industries are dynamic, so BRK needs to adapt as well. I am not losing one second of sleep over this or what Abel has in store, I actually think it is needed.

Completely agree.  One individual, focused on many other things, cannot direct a $trillion enterprise by himself.  Ignoring under-performing businesses does not lend itself to success.  Buffett's accomplishments are astonishing but  a horse and buggy are no longer adequate.  I've said it before - new investors need a legitimate reason to consider investing in Berkshire.  As a 40+ year shareholder, I wouldn't buy additional shares if the company does not evolve.  In fact, if a capital gains holiday were implemented or even better, a 1031-like tax-deferred exchange existed for equities, I'd unload quite a bit of my existing Berkshire stock for better alternatives.  

[netcash1]

Pardon my lack of knowledge.  What company is PRM?  What is the full name?  Thank you 

[gfp]

3 minutes ago, netcash1 said:

Pardon my lack of knowledge.  What company is PRM?  What is the full name?  Thank you 

 

I assume they are referencing 

 

[gfp]

Todd's letter to GEICO associates:

 

GEICO Associates,

As I reflect on today's news and my time with GEICO, I feel an overwhelming sense of gratitude and pride. It has been my privilege to serve as your CEO since early 2020, and to work alongside the people who have made this company what it is today.

I believe strongly in GEICO and in the vision that drives its ongoing transformation. As our company and our industry have continued to grow and evolve, you have brought your talent, dedication, and innovation to your work every day. Together, we've built an organization ready to meet the challenges and opportunities of the future with tremendous momentum - and that momentum belongs to you.

What gives me the greatest confidence as I step into a new role at JPMorganChase is the strength of our leadership team - and especially the strength of your new CEO. Nancy Pierce is the right leader for this company, and she is uniquely qualified to lead GEICO to the next level and continue the gains that have been achieved.

Thank you for your trust in our team and our strategic vision. Most of all, thank you for your energy and hard work on behalf of our customers and one another. It has been my honor to be part of this organization.

With sincere appreciation,

Todd

[Spooky]

37 minutes ago, 73 Reds said:

I'd unload quite a bit of my existing Berkshire stock for better alternatives.

 

What's on your radar these days?

[73 Reds]

8 minutes ago, Spooky said:

 

What's on your radar these days?

As always, Fairfax Financial.  Most of my investments are in the private realm but the public equities I am consistently buying recently year include JOE, TGT, and BABA.

[WFF]

On 12/9/2025 at 7:46 PM, Milu said:

This Berkshire/Buffett transition reminds me a lot of Manchester United once Alex Ferguson finished up in 2013. Ferguson was a once in a lifetime operator who took over a struggling club in 1986 and over the next 3 decades built up the best track record of success in football and premier league history. When he eventually retired in 2013 he handed it over to his self picked successor and a 'reliable pair of hands' who was going to be there for decades and continue the clubs storied culture. Unfortunately as almost always happens succession is an exceedingly difficult thing and no matter what beliefs are held by the visionary leader the real world dynamics of ego, ambition, doubt, shareholder dynamics can come to the surface in even the best businesses. During the 12 years since Ferguson retired Manchester United have cycled through 9 different managers on either a permanent or interim basis, with the longest being about 3 years. They have never won the league again after 13 victories during fergusons 26 year reign.

 

Obviously this is just an analogy and who knows how berkshire will play out, but I would wonder how patient shareholders would be once the spiritual leader buffett is gone, perhaps the share price goes nowhere for a few years, perhaps Abel makes his first big investment and it doesn't work out as planned, knives start coming out angling for change. Buffett won't be there anymore to calm the nerves. Perhaps Abel then gets more gun shy, shareholders are now pushing for dividends to be paid out. Some more employee turnover occurs, AI starts to chip away at some of their big businesses. 

 

While I can't predict what will actually happen I can certainly predict the difficulty that lies ahead for the person who takes over from a once in a generation leader. It will be interesting to watch. I wish him luck.

 

Man Utd was also saddled by a lot of debt due to the Glazers, while Berkshire is a fortress.  
 

But yes, the anointed successors aside from Tim Cook hasn’t worked out of the top of my head (Gates to Baller, Iger to well now back to him, Welch to Jeff Immelt).  So Greg is a risk, but given he is already running the businesses, Ajit is still there taking care of the bread and butter things should be ok.  Hopefully Greg will prove himself before Ajit retires. 

[Pellom]

I'm not sure how to compare it to other past situations. The business is now an operating business and has been for what, 20-30 years? While I do think Buffett and Munger were just being publicly humble about not really sticking their noses in businesses they didn't know how to operate, Greg is the opposite. 

 

It's just going to be an entirely different thing once Buffett isn't making stock picks. 

 

An easy example I would point to is all the low hanging fruit headlines yearly about "Berkshire beat the market" or vice versa. When people read that they think it means the public equity portfolio beat the market. 

Edited December 11, 2025 by Pellom

[CassiusKing1]

As purchases that move the needle get harder and harder to come by, I do see a future where Berkshire is nothing more than a cash gusher that cannibalizes itself by buying back shares and pays a hefty dividend.

[rogermunibond]

MANU is nowhere like Berkshire.  Manchester United is a great global brand...  And that's about it.  Horrible at acquiring players, horrible at keeping player expenses in check, maxed out on non-game day revenue. I get a huge laugh whenever I read Ron Baron or some other investor talking about MANU as an investment. It's one saving grace is the greater fool who comes in and buys it for more than you did.  So it does have billionaire acquisition premium value.

[Xerxes]

A leader that doesn’t take charge is no leader at all. 
 

Greg is taking charge.  

[UK]

https://www.bloomberg.com/news/features/2025-12-10/warren-buffett-s-successor-looks-to-make-berkshire-hathaway-his-own?srnd=homepage-americas

[DooDiligence]

I think Buffet has been somewhat constrained by his promise of a "permanent home" for wholly owned businesses. That era has obviously passed and Greg will not face the same self imposed restriction. I'd bet that there are at least a few wholly owned subs that could be sold or spun without hurting the overall business in the least. Netjets, Flight Safety, Precision Castparts, Dairy Queen, Fruit of the Loom, Garan, Oriental Trading, Pampered Chef, and more.

 

Why not pare things down into a more focused set of operations with reinvestment opportunities? I know, I know, tax advantaged structure and ability to provide low cost financing by shuttling cash around from business to business, blah, blah, blah.

 

Personally, I'm hoping for some pessimism to tank the shares in a meaningful way so I can place some of the cash I just got from last week's sale of 1/3 of my Google (couldn't resist a nice three year triple).

 

Usual disclaimer: I'm a borderline idiot and fully expect people to yell at me now. I'll make things even worse by saying that I'm making chili right now and will be adding red beans because chili without beans ain't chili.