Berkshire Hathaway Inc

BRK.A

Berkshire Hathaway Inc

@david
• 2 months ago

Greg Abel's First Annual Report

Hot off the press is the 2025 Berkshire annual report

I'll get into the details of the Annual Report's results (and copy this post over to our #berkshire-letters forum), but first I want to cover Greg's first letter.

In short, it was exactly what I expect as a long time Berkshire shareholder and attendee of multiple annual meetings.

Assuredly to Warren's chagrin, the letter starts with homage to Warren and Charlie:

He specifically calls out what his job at Berkshire will be during his tenure:

"Berkshire’s culture and values form the basis of our operating framework, which shapes the strategy we pursue and the choices we make as we build Berkshire. As CEO, the framework governs how I lead every day. Our owners’ time horizon extends beyond the tenure of any individual CEO. I will not be your CEO for the next 60 years as simple arithmetic makes that – shall we say – an ambitious plan. However, 20 years from now, when I will have just a fraction of the tenure that Warren had, my intention is that you – or your descendants – will be proud that your company is even stronger."

He then shares a letter that he sent to Berkshire's 400,000 employees:

Some of the highlights from the employee letter to me:

  • "We think in decades, act with discipline, and uphold our commitments"

  • "Charlie’s comment on May 1, 2021, that “Greg will keep the culture” will forever resonate with me. It was a reminder that our culture is our most treasured asset, a call to maintain what defines Berkshire, and a challenge to ensure our culture continues."

  • "Beyond that, we were entrusted with real autonomy to run the business, always focusing on our customers, and taking a long-term view. That owner’s mindset is expected from every Berkshire leader."

He calls out Berkshire's "Foundational Values" as:

  • Decentralized model

  • Integrity

  • Financial Strength

  • Capital Discpline

    • This was a long section, I recommend reading it on your own

    • In the later paragraphs of this section, he reiterates Buffett's approach to buybacks and dividends:

  • Risk Management

  • Operational Excellence

Alright, this was a long enough post, I'll go into the Operating Results in my next post.

Woo! Great job so far, Greg. And good luck. Just like you said, Warren Buffett is a hard act to follow. We're on your side.