Warren Buffett’s Quiet Fortune | A SleepWise Story

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Tonight we slip quietly into the
world of Warren Buffett, born in

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Omaha, NE in 1930, when the
country was struggling and

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families counted every penny.
His childhood was simple but

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full of curiosity.
He liked numbers and spent hours

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with baseball statistics and
columns of figures in the

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newspaper while other children
played without thinking of cost.

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He sold chewing gum and bottles
of Coca-Cola door to door.

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Even then, he sensed that small
decisions repeated over time

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could build something lasting.
Money was not about

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extravagance.
For him, it represented freedom

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and independence, the ability to
pursue ideas at his own pace.

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The grocery store owned by his
grandfather was one of his

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favorite places.
He would walk its aisles,

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touching the cans and listening
to shoppers talk about prices.

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The smell of coffee and fresh
bread mixed with quiet

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conversations taught him about
human behavior at home.

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His father, a stockbroker, spoke
about markets at the dinner

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table.
Warren learned early on that

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there was a difference between
saving and spending, between

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speculation and prudence.
By age 6, he decided he would

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one day be wealthy, though not
for the sake of luxury.

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To him, wealth meant not needing
to answer to anyone else.

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Books became his gateway to
understanding how to achieve

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that independence.
In the library, he found 1000

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ways to make $1000 a book that
showed how small ventures could

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grow.
With patience, he traced the

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compounding interest tables with
his finger, amazed that money

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could earn more money simply by
being left alone.

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He began to see patterns
everywhere, knowledge built upon

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knowledge, habits stacked upon
habits, savings growing quietly

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in the background.
The idea of compounding

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comforted him during uncertain
times and suggested that

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careful, steady effort could
transform modest beginnings into

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something substantial.
By his early teens, he had saved

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enough to buy a used pinball
machine and placed it in a

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Barber shop.
When customers enjoyed playing

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and the machine's coin box
filled up, he bought another.

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Soon, multiple machines in
different locations turned

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quarters into dollars while he
attended school.

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This taught him about
reinvestment and scale.

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Profits could be recycled to
produce even more profits.

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When he sold the small pinball
empire to a returning war

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veteran, he made his first real
deal and learned that patience

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and attention to detail often
uncover opportunities others

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overlook.
Each of these experiences

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reinforced his belief that
numbers, when respected, could

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bring order to chaos and lay the
foundation for a life built on

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steady, thoughtful effort.
In the evenings, he would sit on

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the porch and imagine a future
shaped by curiosity and

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integrity.
The world outside was

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unpredictable, but in his mind,
the steady rhythm of compounding

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and disciplined saving created
sense of calm.

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Those early thoughts would guide
him for decades and to night.

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They carry us gently toward
rest.

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As Warren entered his teenage
years, his curiosity about money

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shifted from simple trades to
more deliberate investments.

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At age 11, he bought 3 shares of
city service stock for himself

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and three for his sister,
feeling the thrill of ownership

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when the tiny certificates
arrived in the mail.

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The price dipped soon after, and
he worried he had made a

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mistake.
But he held on.

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When the stock later rose
slightly, he sold it, making a

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modest profit.
Later he learned that if he had

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held just a little longer, he
would have gained far more.

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This early lesson in patience
would echo through his life.

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He saved much of his paper route
earnings and at 14 bought a 40

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acre patch of Nebraska farmland
with a partner.

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They hired A tenant farmer to
work the land, and the modest

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rent checks arriving each
quarter showed him how assets

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could produce income without his
constant attention.

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High school found Warren
socially shy but intellectually

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engaged.
He was more interested in

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reading financial reports than
attending dances.

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He kept detailed ledgers of his
earnings and savings, tracking

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pennies with the care other
teenagers reserved for sports

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statistics.
In class, he excelled in math

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and economics, often surprising
teachers with the depth of his

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questions.
During summers, he would travel

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with his father to New York
City, where he visited the floor

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of the New York Stock Exchange.
The roar of voices and the

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clatter of the ticker tape
fascinated him.

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He watched traders signaling
orders and imagined a future in

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which he might participate in
those flows of capital.

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These trips expanded his sense
of what was possible beyond

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Omaha.
He also began to experiment with

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small businesses beyond pinball
machines.

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With a friend, he bought a used
hearse, repainted it and rented

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it out for events and parties.
The idea was playful, and the

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novelty attracted customers.
The venture didn't last long,

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but it added to his
understanding that ideas could

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come from anywhere.
At one point, he considered

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starting a stamp collecting
business but decided the market

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was too thin.
Each experiment added to his

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experience and reinforced his
comfort.

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With calculated risk, he avoided
debt, preferring to start small

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and grow only when he could fund
expansions from profits.

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This discipline would become a
hallmark of his later

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investments.
When graduation approached, his

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parents hoped he would pursue A
conventional career like law or

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politics.
He briefly attended the Wharton

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School in Pennsylvania but found
the rigid curriculum stifling.

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After two years he transferred
to the University of Nebraska,

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completing his studies quickly.
He was eager to get on with

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investing, reading every book on
finance he could find.

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He devoured the works of John
Burr Williams and Philip Fisher

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and studied how markets behaved
during booms and crashes.

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He was particularly drawn to the
ideas of Benjamin Graham, whose

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book The Intelligent Investor
outlined a disciplined approach

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to finding undervalued stocks.
These concepts fit neatly with

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his own observations about
buying what others overlooked.

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They planted the seed of a more
structured methodology that

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would soon change his life.
One evening, after poring over

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Graham's book, Warren wrote him
a letter asking to study under

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him.
He was accepted into Columbia

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Business School, where Graham
taught.

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The prospect of learning
directly from the Dean of Wall

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Street lit his imagination.
As he prepared to leave Omaha,

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he felt a mix of anticipation
and calm.

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The path he had followed from
door to door, sales to farmland

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ownership, was leading him
toward deeper knowledge.

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He sensed that the techniques he
would learn in New York would

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refine his instincts and allow
him to build something far

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larger than the tiny ventures of
his youth.

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Columbia University in New York
offered Warren an intellectual

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home and a community of students
who shared his fascination with

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numbers.
In Benjamin Graham's classroom,

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he encountered A systematic
approach to investing that

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resonated deeply with him.
Graham preached the importance

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of intrinsic value and a margin
of safety, urging students to

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treat stocks as ownership stakes
in real businesses rather than

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lottery tickets.
He taught them to look beyond

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market noise, to examine balance
sheets and cash flows, and to

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buy when a company's market
price fell below a conservative

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estimate of its worth.
The lecture hall was warm, the

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air thick with chalk dust and
hushed murmurs, but Warren's

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mind buzzed with clarity as he
recognized his own childhood

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instincts in Graham's theories.
He felt like a puzzle piece

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finding its place.
Warren devoured the coursework,

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soaking up concepts about net
Nets, earnings power and

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liquidation values.
He spent hours in the university

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library, pulling thick volumes
of Moody's manuals off shelves

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and tracing his finger down
columns of numbers.

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He would jot notes in the
margins, highlighting companies

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trading below the value of their
assets.

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Graham's teachings transformed
his view of risk.

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Instead of fearing volatility,
he learned to welcome it,

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knowing that market fluctuations
could create opportunities for

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disciplined investors.
Warren's sense of calm in the

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face of uncertainty grew
stronger outside the classroom.

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He sought out Graham's guidance,
and though Graham was reserved,

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he recognized in the earnest
young Nebraskan a kindred

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spirit.
After earning his master's

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degree, Warren applied to work
at Graham Newman, Graham's

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investment firm.
Initially, Graham turned him

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down, citing a policy against
hiring relatives of clients.

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The rejection stung, but Warren
returned to Omaha and continued

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investing on his own.
He took a job teaching at the

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University of Nebraska and
poured his savings into stocks

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he believed were undervalued.
He studied small companies with

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little analyst coverage, just as
he had sifted through discarded

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racetrack tickets years earlier.
Eventually, a position opened at

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Graham Newman, and Graham
invited him to join.

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Warren moved back to New York
with his young family and spent

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two formative years working as
an analyst, examining dozens of

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companies each week and writing
concise investment memos.

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The experience sharpened his
ability to separate signal from

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noise and reinforced his belief
in disciplined buying.

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When Graham retired and closed
his firm in 1956, Warren faced a

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crossroads.
He could continue working for

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someone else or strike out on
his own.

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Encouraged by friends and family
who trusted his judgment, he

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returned to Omaha and formed
Buffett Partnership.

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Laylauded, he raised small sums
from a handful of investors,

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including his aunt and a few
close acquaintances.

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He made a promise to treat their
money as carefully as his own

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and to take a cut only if the
partnership performed well.

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The partnership agreements were
simple, written with plain

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language, in fair terms.
Warren set strict rules.

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He would not invest in
businesses he did not

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understand, he would avoid
leverage, and he would focus on

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companies selling for less than
they were worth.

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Those guidelines, shaped by
Graham's teaching and his own

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experience, became the
foundation of his practice.

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In the first years of the
partnership, Warren worked from

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a small office with little more
than a desk, a telephone and

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stacks of annual reports.
He studied each company

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intensely before committing
capital.

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He searched for what he called
cigar butts, unloved businesses

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that still had a few puffs of
value left in them.

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By buying these companies when
they were cheap and selling when

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the market recognized their
value, he produced remarkable

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returns for his partners.
The work was patient and

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methodical, and it suited his
temperament.

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He found joy not in the outward
appearance of success, but in

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the quiet act of uncovering
value where others saw none.

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Each day he sharpened his
ability to see through noise,

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just as he had learned to see
through the chatter of a busy

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grocery store and a bustling
trading floor.

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The late 1950s and early 1960s
were a time of steady progress

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for Buffett Partnership.
Lalo Alad Warren's reputation

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grew among a small circle of
investors who appreciated his

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honesty and consistent results.
He continued to seek out

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neglected companies, selling at
deep discounts to their net

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assets.
One such investment was Dempster

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Mill, a manufacturing company in
Beatrice, NE, that made

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windmills and farm equipment.
When Warren first invested, the

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company was struggling.
Its inventory sat idle, and

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management seemed unsure of how
to turn things around.

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Warren accumulated shares
quietly, eventually gaining

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control and installing new
leadership.

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Through patient oversight and
the sale of excess assets, he

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unlocked value that the market
had ignored.

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The experience taught him that
active engagement, not just

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passive ownership, could
sometimes increase the worth of

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an investment.
Another partnership investment

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was Sanborn Map Company, which
produced detailed fire insurance

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maps used by underwriters.
By the late 1950s, Sanborn's

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mapping business had declined.
As newer technologies emerged,

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however, the company had
accumulated a portfolio of

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securities that were worth far
more than its entire market

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capitalization.
Warrant analyzed the books and

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realized that for every share of
stock purchased, investors were

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essentially buying a dollar's
worth of securities for about

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$0.50 He presented his findings
to Sanborn's board and

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negotiated a distribution of the
investment portfolio to

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shareholders.
The result was a handsome return

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for the partnership.
These cases exemplified his

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early cigar butt strategy.
Pick up overlooked businesses

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for a tiny price, Enjoy one last
puff of value, then move on.

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As the assets under management
grew, Warren wrote thoughtful

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letters to his partners
outlining his philosophy and

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performance.
His writing was plain and often

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00:18:48,320 --> 00:18:52,200
humorous.
Avoiding jargon, he explained

234
00:18:52,200 --> 00:18:57,960
why he bought certain companies,
described mistakes honestly and

235
00:18:57,960 --> 00:19:03,400
reminded partners that results
should be judged over a multi

236
00:19:03,400 --> 00:19:07,160
year horizon rather than quarter
by quarter.

237
00:19:07,880 --> 00:19:13,320
His transparency fostered trust
and allowed partners to sleep at

238
00:19:13,320 --> 00:19:17,920
night knowing that their money
was in careful hands.

239
00:19:18,280 --> 00:19:23,480
He stressed that he would close
the partnership if he could no

240
00:19:23,480 --> 00:19:27,800
longer find attractive
investments, rather than invest

241
00:19:28,000 --> 00:19:30,720
for the sake of remaining
active.

242
00:19:31,800 --> 00:19:37,520
This discipline set him apart in
an industry often driven by

243
00:19:37,520 --> 00:19:43,080
churn.
By 1962, the partnership success

244
00:19:43,480 --> 00:19:47,600
allowed Warren to consider
larger opportunities.

245
00:19:48,480 --> 00:19:52,600
He had long noticed a struggling
textile mill in New England

246
00:19:52,600 --> 00:19:57,520
called Berkshire Hathaway.
The company's stock price

247
00:19:57,680 --> 00:20:01,160
fluctuated around its tangible
asset value.

248
00:20:01,800 --> 00:20:06,760
And periodic tenders to
repurchase shares had created

249
00:20:06,760 --> 00:20:12,200
opportunities for profit.
Warren began buying shares in

250
00:20:12,200 --> 00:20:16,560
the open market, intending to
flip them for a small gain.

251
00:20:16,800 --> 00:20:21,000
When the company offered to
repurchase after a disagreement

252
00:20:21,000 --> 00:20:25,760
with management about the price
of a tender offer, he decided

253
00:20:25,760 --> 00:20:29,800
instead to take control of the
business.

254
00:20:30,880 --> 00:20:36,520
What began as a short term trade
turned into a pivotal decision.

255
00:20:36,960 --> 00:20:41,200
Berkshire's textile operations
were declining, but its

256
00:20:41,200 --> 00:20:45,160
corporate shell became the
vehicle through which Warren

257
00:20:45,160 --> 00:20:47,480
would channel future
investments.

258
00:20:48,360 --> 00:20:53,200
The purchase marked the start of
a transformation that would

259
00:20:53,200 --> 00:20:58,120
reshape his career.
The partnership continued until

260
00:20:58,120 --> 00:21:03,160
1969, when Warren chose to wind
it down.

261
00:21:04,080 --> 00:21:08,320
He felt that opportunities for
value investing at small scale

262
00:21:08,520 --> 00:21:12,760
were diminishing and that his
responsibilities at Berkshire

263
00:21:12,840 --> 00:21:16,640
were growing.
He distributed the partnership's

264
00:21:16,640 --> 00:21:21,320
assets to his partners, many of
whom chose to reinvest in

265
00:21:21,320 --> 00:21:25,800
Berkshire shares.
Even in closing, he focused on

266
00:21:25,800 --> 00:21:30,960
fairness and clarity, ensuring
that partners understood what

267
00:21:30,960 --> 00:21:35,600
they were receiving.
This period left him with both

268
00:21:35,600 --> 00:21:41,520
the capital and the confidence
to expand his investments beyond

269
00:21:41,520 --> 00:21:46,880
small cigar butt situations.
It also marked the beginning of

270
00:21:46,880 --> 00:21:52,560
a new chapter in which quality
businesses and long term

271
00:21:52,560 --> 00:21:58,200
ownership would become
increasingly important.

272
00:21:58,560 --> 00:22:03,280
Warren's purchase of Berkshire
Hathaway, a failing textile

273
00:22:03,280 --> 00:22:07,760
manufacturer, turned out to be
both a challenge and an

274
00:22:07,760 --> 00:22:12,680
opportunity.
The mills were old, their looms

275
00:22:12,680 --> 00:22:17,080
clattered loudly and the
business faced stiff competition

276
00:22:17,080 --> 00:22:21,800
from cheaper foreign producers.
Operating profits were meagre,

277
00:22:22,120 --> 00:22:26,760
and reinvestment would have
required pouring money into an

278
00:22:26,760 --> 00:22:29,400
industry that offered little
future.

279
00:22:30,320 --> 00:22:35,880
Instead of pouring resources
into cloth, Warren and his small

280
00:22:35,880 --> 00:22:41,640
team focused on redirecting
Berkshire's capital into other

281
00:22:41,640 --> 00:22:45,000
ventures.
He acquired National Indemnity,

282
00:22:45,000 --> 00:22:49,760
an insurance company which
provided steady underwriting

283
00:22:49,760 --> 00:22:55,520
profits and, more importantly,
large amounts of premium float

284
00:22:56,320 --> 00:23:00,080
that could be invested until
claims came due.

285
00:23:01,200 --> 00:23:05,440
This float became a powerful
engine, allowing Berkshire to

286
00:23:05,440 --> 00:23:09,280
invest with the leverage of
borrowed capital at low cost

287
00:23:09,720 --> 00:23:12,680
while always maintaining a
margin of safety.

288
00:23:13,040 --> 00:23:17,560
Insurance taught him that good
businesses are not always

289
00:23:17,560 --> 00:23:22,040
glamorous.
National Indemnity's offices

290
00:23:22,360 --> 00:23:26,560
were modest and its business
straightforward.

291
00:23:27,360 --> 00:23:31,960
Underwrite policies
conservatively, collect more in

292
00:23:31,960 --> 00:23:37,160
premiums than you payout in
claims, and invest the float

293
00:23:37,640 --> 00:23:40,880
carefully.
Warren's disciplined approach to

294
00:23:40,880 --> 00:23:46,040
underwriting meant avoiding the
temptation to chase market share

295
00:23:46,400 --> 00:23:51,640
by underpricing risk.
He insisted on prudent reserves

296
00:23:51,920 --> 00:23:56,360
and avoided insuring risks he
did not understand.

297
00:23:56,720 --> 00:24:01,080
The results were predictable
profits, which he could then

298
00:24:01,080 --> 00:24:03,640
deploy into attractive
investments.

299
00:24:04,520 --> 00:24:08,680
Over time, Berkshire acquired
other insurance businesses,

300
00:24:08,920 --> 00:24:14,520
including Geeko, which would
become one of its crown jewels.

301
00:24:15,360 --> 00:24:20,480
Each acquisition was made with
an eye toward long term value

302
00:24:20,960 --> 00:24:25,320
rather than short term earnings.
At the urging of his friend and

303
00:24:25,320 --> 00:24:30,240
new partner, Charlie Munger,
Warren began to look beyond

304
00:24:30,240 --> 00:24:34,800
cigar butt situations.
Charlie argued that buying

305
00:24:34,800 --> 00:24:39,240
wonderful businesses at fair
prices was better than buying

306
00:24:39,240 --> 00:24:42,600
fair businesses at wonderful
prices.

307
00:24:43,760 --> 00:24:48,520
He pointed to companies like
See's Candies, a West Coast

308
00:24:48,520 --> 00:24:53,080
confectioner with a loyal
customer base and strong brand.

309
00:24:53,360 --> 00:24:57,520
Seas produced modest but
consistent cash flow, far

310
00:24:57,520 --> 00:25:00,360
exceeding the capital required
to operate.

311
00:25:01,040 --> 00:25:05,600
Its strength lay in its
intangible assets, its

312
00:25:05,600 --> 00:25:12,120
reputation for quality, and its
customers emotional attachment.

313
00:25:12,560 --> 00:25:21,280
Berkshire purchased Seas in 1972
for $25 million, a price that

314
00:25:21,280 --> 00:25:25,400
included a premium above
tangible assets.

315
00:25:26,320 --> 00:25:30,960
In the decades that followed,
Seas generated hundreds of

316
00:25:30,960 --> 00:25:35,640
millions in profits,
demonstrating that paying up for

317
00:25:35,640 --> 00:25:42,360
quality could be wise.
Berkshire also invested in Blue

318
00:25:42,360 --> 00:25:48,400
Chip Stamps, a trading stamp
business that generated cash

319
00:25:48,760 --> 00:25:53,960
despite being in decline.
The cash flow from stamps helped

320
00:25:53,960 --> 00:25:58,040
fund other acquisitions.
Berkshire's structure allowed

321
00:25:58,040 --> 00:26:01,400
Warren and Charlie to move
capital from declining

322
00:26:01,400 --> 00:26:06,040
industries to growing ones
without the friction of taxes

323
00:26:06,400 --> 00:26:08,600
that would have accompanied a
sale.

324
00:26:08,920 --> 00:26:13,840
This capital allocation
flexibility became a defining

325
00:26:13,840 --> 00:26:18,720
feature of Berkshire's approach.
In each case, the key was to

326
00:26:18,720 --> 00:26:23,920
understand the economics of the
business and to avoid overpaying

327
00:26:24,120 --> 00:26:28,800
even for quality.
The combination of float from

328
00:26:28,800 --> 00:26:33,440
insurance and cash flows from
durable businesses created a

329
00:26:33,440 --> 00:26:37,360
foundation that could support
larger investments.

330
00:26:37,680 --> 00:26:42,600
The textile mills in New England
eventually closed, their

331
00:26:42,600 --> 00:26:47,600
machinery sold and workers
released with respect.

332
00:26:48,240 --> 00:26:52,560
Warren wrote honestly about the
decision, acknowledging the

333
00:26:52,600 --> 00:26:56,720
impact on employees and the
community.

334
00:26:57,000 --> 00:26:59,560
He did not try to sugarcoat the
loss.

335
00:27:00,120 --> 00:27:04,840
Instead, he focused on the
responsibility to allocate

336
00:27:04,840 --> 00:27:08,240
capital where it would do the
most good.

337
00:27:09,160 --> 00:27:12,600
The closure marked the end of
Berkshire's beginnings as a

338
00:27:12,600 --> 00:27:17,880
textile company and the birth of
Berkshire Hathaway as a

339
00:27:17,880 --> 00:27:23,240
diversified conglomerate.
Through these years, Warren's

340
00:27:23,240 --> 00:27:26,120
partnership with Charlie
deepened.

341
00:27:26,560 --> 00:27:31,760
Their conversation stretched
late into the night, one man's

342
00:27:31,760 --> 00:27:36,040
practical Midwestern cadence
balancing the other's California

343
00:27:36,040 --> 00:27:39,440
wit.
Their combined discipline and

344
00:27:39,440 --> 00:27:43,960
flexibility would allow
Berkshire to navigate decades of

345
00:27:43,960 --> 00:27:48,280
change while remaining anchored
in timeless principles.

346
00:27:48,720 --> 00:27:55,040
The 1970s and 1980s saw
Berkshire Hathaway evolve into a

347
00:27:55,040 --> 00:27:58,120
collection of high quality
businesses.

348
00:27:59,160 --> 00:28:03,000
Guided by the philosophy of
buying wonderful companies at

349
00:28:03,000 --> 00:28:08,120
fair prices, Warren and Charlie
sought out enterprises with

350
00:28:08,240 --> 00:28:13,440
durable competitive advantages,
businesses with moats that

351
00:28:13,440 --> 00:28:17,840
protected them from rivals.
One such investment was the

352
00:28:17,840 --> 00:28:23,400
Washington Post Company, which
they purchased in 1973.

353
00:28:24,280 --> 00:28:28,360
The newspaper held a dominant
position in the nation's capital

354
00:28:28,680 --> 00:28:33,840
and had strong cash flows.
However, the stock market had

355
00:28:33,840 --> 00:28:36,040
punished it during a bear
market.

356
00:28:36,840 --> 00:28:41,760
Warren recognized that The
Post's brand and management were

357
00:28:41,760 --> 00:28:45,680
stronger than the market
believed, and he quietly

358
00:28:45,680 --> 00:28:50,840
acquired a large stake in Time.
The investment paid off

359
00:28:50,840 --> 00:28:54,240
handsomely.
He later joined The Post's

360
00:28:54,320 --> 00:28:58,560
board, forging A lifelong
friendship with publisher

361
00:28:58,560 --> 00:29:04,080
Katherine Graham and gaining A
deeper appreciation for the

362
00:29:04,080 --> 00:29:07,880
challenges of media.
Another major purchase was the

363
00:29:07,880 --> 00:29:10,800
credit card company American
Express.

364
00:29:11,560 --> 00:29:16,560
In the mid 1960s, American
Express had been rocked by a

365
00:29:16,560 --> 00:29:21,760
scandal involving phony
financial instruments, causing

366
00:29:21,760 --> 00:29:27,040
its share price to plummet.
Warren assessed the situation

367
00:29:27,440 --> 00:29:31,920
and concluded that the scandal
did not impair the core

368
00:29:31,920 --> 00:29:35,400
business.
He invested heavily, and within

369
00:29:35,400 --> 00:29:40,120
a few years American Express
regained its standing and its

370
00:29:40,120 --> 00:29:45,400
stock price recovered.
The episode reinforced the value

371
00:29:45,400 --> 00:29:50,120
of understanding the underlying
business rather than reacting to

372
00:29:50,120 --> 00:29:53,600
headlines.
Coca-Cola entered Berkshire's

373
00:29:53,600 --> 00:29:58,680
portfolio in 1988.
The company's global brand

374
00:29:58,680 --> 00:30:04,160
recognition, ubiquitous
distribution network and robust

375
00:30:04,160 --> 00:30:08,680
cash flows fit perfectly with
Berkshire's criteria.

376
00:30:08,960 --> 00:30:13,400
Warren loved the product.
He drank Cherry Coke daily and

377
00:30:13,400 --> 00:30:18,640
admired the company's ability to
raise prices without losing

378
00:30:18,640 --> 00:30:21,680
customers.
The investment became one of

379
00:30:21,680 --> 00:30:25,760
Berkshire's most famous
holdings, and its dividends

380
00:30:26,120 --> 00:30:31,960
flowed steadily for decades.
The story of Coca-Cola also

381
00:30:31,960 --> 00:30:37,560
illustrated Warren's belief that
simple, understandable products

382
00:30:38,200 --> 00:30:41,280
could generate extraordinary
returns.

383
00:30:41,840 --> 00:30:46,520
If backed by disciplined
management and strong brands,

384
00:30:47,640 --> 00:30:52,520
such businesses could be held
for years with little worry,

385
00:30:53,120 --> 00:30:55,840
allowing compounding to do its
work.

386
00:30:56,160 --> 00:31:01,080
In the 1990s and 2000s,
Berkshire expanded into

387
00:31:01,080 --> 00:31:06,920
railroads, utilities and energy.
The purchase of Burlington

388
00:31:06,920 --> 00:31:15,120
Northern Santa Fe BNSF in 2009
brought one of America's largest

389
00:31:15,120 --> 00:31:20,200
freight railroads into the fold.
Railroads are capital intensive

390
00:31:20,640 --> 00:31:23,840
but enjoy natural monopolies
along the routes.

391
00:31:24,400 --> 00:31:28,240
They transport goods
efficiently, are vital to the

392
00:31:28,240 --> 00:31:31,880
economy and have high barriers
to entry.

393
00:31:32,760 --> 00:31:37,920
Warren viewed BNSF as an asset
that would endure for

394
00:31:37,920 --> 00:31:42,960
generations, providing steady
returns and a hedge against

395
00:31:42,960 --> 00:31:46,400
inflation.
M Similarly, Berkshire's

396
00:31:46,400 --> 00:31:51,800
investments in Mid American
Energy, later renamed Berkshire

397
00:31:51,800 --> 00:31:56,480
Hathaway Energy, signaled his
interest in infrastructure and

398
00:31:56,480 --> 00:32:01,440
renewable energy, including wind
and solar projects.

399
00:32:02,240 --> 00:32:07,320
These moves showed that a long
term horizon could embrace both

400
00:32:07,320 --> 00:32:10,160
traditional and emerging
industries.

401
00:32:10,560 --> 00:32:15,120
Throughout these decades, Warren
remained committed to

402
00:32:15,120 --> 00:32:18,520
transparency.
His annual letters to

403
00:32:18,520 --> 00:32:24,400
shareholders became required
reading for investors worldwide.

404
00:32:25,120 --> 00:32:29,440
In clear prose, he discussed
Berkshire's performance,

405
00:32:29,880 --> 00:32:36,520
admitted mistakes, and shared
insights into business and life.

406
00:32:36,840 --> 00:32:40,960
He reminded readers that
Berkshire's success owed much to

407
00:32:40,960 --> 00:32:45,520
America's economic dynamism and
to the managers who ran its

408
00:32:45,520 --> 00:32:49,520
subsidiary companies.
He often quoted Charlie,

409
00:32:49,920 --> 00:32:54,160
crediting him with shaping the
shift from cigar butt investing

410
00:32:54,440 --> 00:32:58,360
to quality investing.
Their partnership was marked by

411
00:32:58,360 --> 00:33:03,160
mutual respect and a shared
delight in learning.

412
00:33:04,160 --> 00:33:08,680
As Berkshire's investments grew
more varied, the underlying

413
00:33:08,680 --> 00:33:14,520
philosophy remained constant.
Seek businesses with durable

414
00:33:14,520 --> 00:33:20,120
moats, capable managers, and
fair prices, and then hold them

415
00:33:20,440 --> 00:33:24,080
with patience.
Outside of corporate board rooms

416
00:33:24,080 --> 00:33:29,240
and annual reports, Warren's
daily life remained remarkably

417
00:33:29,240 --> 00:33:33,200
ordinary.
He continued to live in the same

418
00:33:33,200 --> 00:33:39,120
stucco house in Omaha that he
bought in 1958 for $31.00 and

419
00:33:39,120 --> 00:33:42,680
$500.
The neighborhood was leafy and

420
00:33:42,680 --> 00:33:46,960
quiet, the house modest by
billionaire standards.

421
00:33:47,560 --> 00:33:53,200
Inside the decor was simple,
comfortable chairs, family

422
00:33:53,200 --> 00:33:56,760
photos and stacks of business
documents.

423
00:33:57,640 --> 00:34:01,760
He drove himself to work each
day, often stopping at a

424
00:34:01,760 --> 00:34:04,240
McDonald's drive through for
breakfast.

425
00:34:04,680 --> 00:34:09,440
There was a familiar routine.
He chose his meal based on the

426
00:34:09,440 --> 00:34:14,600
price of Berkshire stock that
morning, a playful ritual rather

427
00:34:14,600 --> 00:34:17,080
than any real financial
necessity.

428
00:34:18,080 --> 00:34:22,600
At the office, a low rise
building without signage, he

429
00:34:22,600 --> 00:34:29,320
read for hours, reviewing
reports, letters and newspapers.

430
00:34:29,560 --> 00:34:32,719
Warren's diet was famously
plain.

431
00:34:33,239 --> 00:34:37,520
He drank several cans of Cherry
Coke each day and enjoyed

432
00:34:37,520 --> 00:34:40,920
hamburgers, steaks, and peanut
brittle.

433
00:34:41,719 --> 00:34:45,239
He often joked that he followed
a six year old's palate,

434
00:34:45,560 --> 00:34:48,120
choosing foods he liked as a
child.

435
00:34:48,480 --> 00:34:52,920
His simple tastes contrasted
sharply with his vast wealth,

436
00:34:53,520 --> 00:34:57,200
but they aligned with his
philosophy of focusing on

437
00:34:57,200 --> 00:35:01,640
essentials and ignoring
unnecessary complexity.

438
00:35:02,600 --> 00:35:06,920
He saw no need to impress others
with expensive possessions.

439
00:35:07,560 --> 00:35:11,880
Instead, he invested in
experiences that brought joy,

440
00:35:12,320 --> 00:35:16,880
such as playing bridge.
He played for hours with

441
00:35:16,880 --> 00:35:21,720
friends, including Bill Gates,
delighting in the game's mix of

442
00:35:21,720 --> 00:35:24,360
strategy, memory and
partnership.

443
00:35:25,240 --> 00:35:30,000
The cards clicking softly on the
table provided a rhythm of

444
00:35:30,000 --> 00:35:34,080
thought that mirrored the
patterns he saw in business.

445
00:35:34,400 --> 00:35:38,640
His love of reading remained
central to his routine.

446
00:35:39,240 --> 00:35:43,760
Warren spent much of each day
with a book or report in hand,

447
00:35:44,400 --> 00:35:48,000
believing that knowledge
compounds like money.

448
00:35:48,400 --> 00:35:54,600
He often advised young people to
read 500 pages a day if they

449
00:35:54,600 --> 00:35:58,840
wanted to get smarter.
He read widely, everything from

450
00:35:58,840 --> 00:36:02,320
biographies and history to
corporate filings and

451
00:36:02,320 --> 00:36:06,040
newspapers.
He was curious about how things

452
00:36:06,040 --> 00:36:10,160
worked, how people made
decisions, and how patterns

453
00:36:10,160 --> 00:36:13,680
repeated.
This reading nourished his

454
00:36:13,680 --> 00:36:18,320
ability to see connections and
to understand businesses deeply

455
00:36:18,320 --> 00:36:22,520
before investing.
It also kept him grounded,

456
00:36:23,000 --> 00:36:28,480
reminding him of the long arc of
history and the resilience of

457
00:36:28,680 --> 00:36:33,560
human institutions.
Despite his fame, Warren

458
00:36:33,560 --> 00:36:40,880
cherished privacy and humility.
He disliked ostentation and

459
00:36:40,880 --> 00:36:44,240
rarely engaged in flashy
displays.

460
00:36:45,240 --> 00:36:49,800
He valued his relationships with
long time friends and

461
00:36:49,800 --> 00:36:54,240
colleagues, many of whom had no
interest in his wealth.

462
00:36:54,640 --> 00:36:58,560
He maintained a small staff at
Berkshire's headquarters,

463
00:36:59,080 --> 00:37:02,720
fostering a culture of trust and
autonomy.

464
00:37:03,640 --> 00:37:06,960
He delegated authority to
managers who ran their

465
00:37:06,960 --> 00:37:12,720
businesses independently,
intervening only when necessary.

466
00:37:13,000 --> 00:37:18,400
This decentralization allowed
Berkshire to operate efficiently

467
00:37:18,760 --> 00:37:23,520
despite its size.
Warren would say that he did not

468
00:37:23,520 --> 00:37:28,760
micromanage because he chose
people he trusted and then

469
00:37:28,760 --> 00:37:33,400
trusted them completely.
In public appearances, he

470
00:37:33,400 --> 00:37:37,160
combined folksy humor with sharp
insight.

471
00:37:37,600 --> 00:37:42,560
He told jokes, quoted song
lyrics, and used simple

472
00:37:42,560 --> 00:37:46,520
analogies to explain complex
ideas.

473
00:37:47,280 --> 00:37:52,160
He wore suits that seemed
slightly out of time, spoke with

474
00:37:52,160 --> 00:37:56,280
a Midwestern lilt, and never
forgot his roots.

475
00:37:56,640 --> 00:38:01,920
His humility and clarity
endeared him to shareholders who

476
00:38:01,920 --> 00:38:05,320
felt they could understand what
he was doing with their money.

477
00:38:06,400 --> 00:38:11,080
Through these habits and
rituals, he demonstrated that a

478
00:38:11,200 --> 00:38:16,720
purposeful life need not be
complicated or ostentatious.

479
00:38:17,080 --> 00:38:22,080
The steady rhythms of reading,
thinking, and living simply were

480
00:38:22,080 --> 00:38:26,840
as important to his success as
any financial model.

481
00:38:27,200 --> 00:38:32,360
Underlying Warren's success were
a set of principles that he

482
00:38:32,360 --> 00:38:38,200
shared openly.
He often said rule #1, never

483
00:38:38,200 --> 00:38:44,280
lose money.
Rule #2 Never forget rule #1

484
00:38:45,520 --> 00:38:49,800
This was shorthand for the
importance of avoiding permanent

485
00:38:49,800 --> 00:38:53,960
capital losses.
He emphasized that protecting

486
00:38:53,960 --> 00:38:59,320
downside risk was more important
than chasing high returns.

487
00:39:00,280 --> 00:39:03,640
He advised investors to stay
within their circle of

488
00:39:03,640 --> 00:39:08,440
competence, only buying
businesses they understood.

489
00:39:08,760 --> 00:39:13,960
If a business was too complex or
unpredictable, he simply passed

490
00:39:13,960 --> 00:39:18,360
on it, knowing there would
always be another opportunity.

491
00:39:19,120 --> 00:39:23,360
He believed in patience,
insisting that waiting for the

492
00:39:23,360 --> 00:39:27,240
right pitch was better than
swinging at every ball.

493
00:39:27,640 --> 00:39:32,600
When markets grew euphoric, he
reminded himself and others to

494
00:39:32,600 --> 00:39:37,320
be fearful.
When fear dominated, he urged

495
00:39:37,320 --> 00:39:41,760
calm courage.
Warren's letters often noted

496
00:39:42,080 --> 00:39:46,200
that the stock market was a
mechanism for transferring money

497
00:39:46,680 --> 00:39:49,280
from the impatient to the
patient.

498
00:39:50,160 --> 00:39:55,120
He discouraged speculation and
short term trading, explaining

499
00:39:55,120 --> 00:39:59,000
that trying to time markets
usually hurt more than it

500
00:39:59,000 --> 00:40:02,600
helped.
Instead, he encouraged buying

501
00:40:02,600 --> 00:40:07,000
slices of great businesses and
holding them for years.

502
00:40:07,960 --> 00:40:13,440
Compounding does its best work
over long periods, and frequent

503
00:40:13,440 --> 00:40:18,640
trading disrupts that growth.
He argued that the best

504
00:40:18,640 --> 00:40:23,400
investments were often those
that looked unexciting in the

505
00:40:23,400 --> 00:40:27,080
near term but had durable
advantages that would become

506
00:40:27,080 --> 00:40:32,680
clear over decades.
He cited examples like Coca-Cola

507
00:40:32,720 --> 00:40:38,040
and American Express to show how
a good business could multiply

508
00:40:38,040 --> 00:40:41,960
capital without requiring
constant oversight.

509
00:40:42,840 --> 00:40:47,480
He noted that such businesses
could be held for years with

510
00:40:47,520 --> 00:40:52,760
minimal worry, allowing
compounding to to flourish.

511
00:40:53,160 --> 00:40:57,760
When people asked him for
personal finance advice, he

512
00:40:57,760 --> 00:41:03,120
often suggested simple, low cost
index funds.

513
00:41:04,000 --> 00:41:09,120
He explained that most investors
would do better by owning a

514
00:41:09,160 --> 00:41:15,080
broad basket of companies rather
than trying to pick winners.

515
00:41:15,400 --> 00:41:19,360
He pointed to evidence that very
few professional managers

516
00:41:19,360 --> 00:41:22,120
outperformed the market after
fees.

517
00:41:23,000 --> 00:41:27,200
He urged young investors to
start early, stay diversified

518
00:41:27,520 --> 00:41:30,960
and ignore day-to-day
fluctuations.

519
00:41:31,960 --> 00:41:36,680
His own estate plan included
instructions to invest his

520
00:41:36,680 --> 00:41:42,800
wife's inheritance mostly in
index funds, a testament to his

521
00:41:42,800 --> 00:41:47,880
faith in this approach.
In doing so, he reminded

522
00:41:47,880 --> 00:41:53,440
listeners that even the world's
best stock picker believed in

523
00:41:53,440 --> 00:41:58,760
the power of simple, disciplined
investing for most people.

524
00:41:59,120 --> 00:42:02,280
Warren also talked about the
importance of temperament.

525
00:42:02,840 --> 00:42:07,520
Intelligence and knowledge
matter, he said, but the ability

526
00:42:07,520 --> 00:42:13,120
to control emotion is essential.
Markets will always swing

527
00:42:13,120 --> 00:42:18,760
between optimism and pessimism.
Investors who can stay rational

528
00:42:18,760 --> 00:42:21,960
during these swings will have an
advantage.

529
00:42:22,360 --> 00:42:27,600
He recommended cultivating an
inner scorecard, measuring

530
00:42:27,600 --> 00:42:32,440
success by one's own standards
rather than seeking approval

531
00:42:32,440 --> 00:42:36,560
from others.
This philosophy encouraged

532
00:42:36,560 --> 00:42:41,200
people to focus on what they
could control, effort,

533
00:42:41,600 --> 00:42:47,240
curiosity, and integrity rather
than external accolades.

534
00:42:47,640 --> 00:42:52,000
He acknowledged that mistakes
were inevitable and that

535
00:42:52,000 --> 00:42:55,680
admitting them openly was a sign
of strength.

536
00:42:56,800 --> 00:43:01,480
Learning from errors and
avoiding repeating them was part

537
00:43:01,480 --> 00:43:07,040
of the compounding process.
The principles extended beyond

538
00:43:07,040 --> 00:43:11,200
money.
Warren believed in kindness and

539
00:43:11,200 --> 00:43:16,160
fairness in business dealings,
treating partners and employees

540
00:43:16,520 --> 00:43:20,520
with respect.
He credited much of his success

541
00:43:20,520 --> 00:43:24,360
to the trust others placed in
him and to the supportive

542
00:43:24,360 --> 00:43:28,840
community around him.
He warned against envy and

543
00:43:28,840 --> 00:43:34,080
greed, noting that comparing
oneself to others often leads to

544
00:43:34,520 --> 00:43:38,240
misery.
He found joy in seeing ideas

545
00:43:38,240 --> 00:43:43,040
grow, people flourish and
communities benefit from well

546
00:43:43,040 --> 00:43:47,880
allocated capital.
By sharing these lessons, he

547
00:43:47,880 --> 00:43:51,720
hoped others would find the same
peace and purpose that guided

548
00:43:51,720 --> 00:43:54,200
him.
Warren's friendship with Bill

549
00:43:54,200 --> 00:43:57,760
Gates brought a new dimension to
his life.

550
00:43:58,800 --> 00:44:05,000
They first met in 1991, when
mutual friend Catherine Graham,

551
00:44:05,560 --> 00:44:10,480
publisher of The Washington
Post, arranged a meeting at

552
00:44:10,480 --> 00:44:14,720
Gates's mother's house.
Bill initially thought the older

553
00:44:14,720 --> 00:44:19,480
investor was out of touch with
technology, while Warren doubted

554
00:44:19,760 --> 00:44:23,360
he had much in common with a
young computer billionaire.

555
00:44:24,080 --> 00:44:30,240
Yet their conversation lasted
for hours, Delving into topics

556
00:44:30,240 --> 00:44:34,960
like business, science and world
affairs.

557
00:44:35,400 --> 00:44:41,000
They discovered a shared love of
learning and bridge, A card game

558
00:44:41,000 --> 00:44:46,200
that requires strategy,
communication and patience.

559
00:44:47,040 --> 00:44:51,320
After that meeting, they became
regular partners at the bridge

560
00:44:51,320 --> 00:44:56,680
table, often playing for hours
and laughing over mistakes and

561
00:44:56,680 --> 00:45:00,040
triumphs.
The friendship deepened over the

562
00:45:00,040 --> 00:45:03,200
years.
Warren visited Microsoft's

563
00:45:03,200 --> 00:45:07,960
campus, where he peppered Bill
with questions about software,

564
00:45:08,400 --> 00:45:12,360
technology trends and the future
of computing.

565
00:45:13,360 --> 00:45:17,480
Bill, in turn, asked about
investing and business

566
00:45:17,480 --> 00:45:21,320
structures.
Each man respected the other's

567
00:45:21,320 --> 00:45:25,720
expertise and humility.
They travelled together,

568
00:45:25,800 --> 00:45:30,200
attended conferences, and even
wrote joint op eds.

569
00:45:30,920 --> 00:45:35,320
Their conversations were
wide-ranging, reflecting their

570
00:45:35,320 --> 00:45:40,640
curiosity about the world.
They were comfortable teasing

571
00:45:40,640 --> 00:45:44,960
each other in public, Bill
joking about Warren's ancient

572
00:45:44,960 --> 00:45:48,960
flip phone and Warren quipping
about Bill's taste in

573
00:45:48,960 --> 00:45:52,960
hamburgers.
The humor and warmth of their

574
00:45:52,960 --> 00:45:57,000
interactions showed a genuine
bond.

575
00:45:57,240 --> 00:46:01,840
Warren and Bill's friendship
took on broader significance

576
00:46:02,200 --> 00:46:06,640
when they teamed up with Melinda
Gates to launch the Giving

577
00:46:06,640 --> 00:46:13,280
Pledge in 2010.
The pledge invited billionaires

578
00:46:13,280 --> 00:46:17,720
around the world to commit
publicly to giving away the

579
00:46:17,720 --> 00:46:21,960
majority of their wealth to
address society's greatest

580
00:46:21,960 --> 00:46:25,680
challenges.
Warren had already pledged much

581
00:46:25,680 --> 00:46:30,920
of his fortune to philanthropy,
but he saw the pledge as a way

582
00:46:30,920 --> 00:46:35,240
to encourage others to think
about how wealth could serve a

583
00:46:35,240 --> 00:46:39,880
greater good.
Bill and Melinda brought

584
00:46:39,880 --> 00:46:45,760
expertise from their foundation,
which focused on global health

585
00:46:45,760 --> 00:46:49,520
and education.
Together, they met with wealthy

586
00:46:49,520 --> 00:46:54,040
individuals, discussing how to
structure gifts and measure

587
00:46:54,040 --> 00:46:57,920
impact.
The conversations were often

588
00:46:57,920 --> 00:47:02,880
private, reflecting the personal
nature of philanthropy, But the

589
00:47:02,880 --> 00:47:08,000
movement grew.
Today, hundreds of signatories

590
00:47:08,000 --> 00:47:11,560
have promised to donate a
majority of their wealth.

591
00:47:11,960 --> 00:47:15,120
Bridge remained A pastime that
connected them.

592
00:47:15,680 --> 00:47:20,160
They played online when travel
kept them apart, watching cards

593
00:47:20,160 --> 00:47:23,640
appear on screens while chatting
through speakers.

594
00:47:24,080 --> 00:47:28,920
They competed in tournaments,
sometimes with teams of friends,

595
00:47:29,280 --> 00:47:32,240
and celebrated each other's
victories.

596
00:47:33,120 --> 00:47:37,560
Warren liked to joke that Bridge
kept his mind sharp and his ego

597
00:47:37,560 --> 00:47:42,120
in check.
The game's rhythms, thoughtful

598
00:47:42,120 --> 00:47:47,080
planning, communication and
trust mirrored principles he

599
00:47:47,080 --> 00:47:53,000
valued in investing and life.
Bill once said that spending

600
00:47:53,000 --> 00:47:59,320
time with Warren was like
getting a PhD in life, praising

601
00:47:59,320 --> 00:48:03,200
his clarity of thought and
generosity of spirit.

602
00:48:04,040 --> 00:48:09,480
Warren, in turn, admired Bill's
optimism and determination to

603
00:48:09,480 --> 00:48:13,960
tackle big problems.
The collaboration between Warren

604
00:48:13,960 --> 00:48:18,280
and the Gates family extended
beyond wealth.

605
00:48:19,240 --> 00:48:22,880
They discussed global challenges
such as climate change,

606
00:48:22,880 --> 00:48:29,240
pandemics and inequality.
Warren often said that Bill and

607
00:48:29,240 --> 00:48:35,000
Melinda opened his eyes to the
scale of issues outside his

608
00:48:35,000 --> 00:48:39,040
investment world.
He trusted their judgment on

609
00:48:39,040 --> 00:48:43,600
philanthropy as much as he
trusted his own judgment on

610
00:48:43,600 --> 00:48:47,640
companies.
Through their friendship, both

611
00:48:47,640 --> 00:48:51,600
men grew.
Bill learned about patience and

612
00:48:51,600 --> 00:48:56,600
value investing, while Warren
learned about technology and the

613
00:48:56,600 --> 00:49:02,840
complexities of global health.
Their partnership showed how

614
00:49:03,120 --> 00:49:08,200
curiosity and humility could
bridge generational and

615
00:49:08,200 --> 00:49:13,920
disciplinary divides, creating a
shared commitment to improve the

616
00:49:13,920 --> 00:49:17,280
world.
Long before public promises and

617
00:49:17,600 --> 00:49:22,440
organized campaigns, Warren had
been thinking about

618
00:49:22,680 --> 00:49:26,920
philanthropy.
His father's example, running

619
00:49:26,920 --> 00:49:31,880
for Congress and standing up for
civil rights, instilled in him a

620
00:49:31,880 --> 00:49:38,080
sense of public responsibility.
Warren believed that wealth came

621
00:49:38,080 --> 00:49:45,000
with an obligation to give back.
In 2006, he announced a plan to

622
00:49:45,000 --> 00:49:49,960
donate the vast majority of his
fortune to a handful of

623
00:49:49,960 --> 00:49:55,760
foundations, including the Bill
and Melinda Gates Foundation and

624
00:49:55,760 --> 00:50:00,920
his own family's foundations.
He pledged to give away more

625
00:50:00,920 --> 00:50:06,120
than 99% of his wealth, with
most of it going to causes

626
00:50:06,120 --> 00:50:10,760
managed by people he trusted.
He structured his gifts

627
00:50:10,760 --> 00:50:16,480
carefully, distributing shares
over time to allow compounding

628
00:50:16,480 --> 00:50:20,840
to continue while gradually
funding charitable work.

629
00:50:21,240 --> 00:50:26,240
Each summer, he wrote letters
explaining his donations to the

630
00:50:26,240 --> 00:50:29,960
recipients and to Berkshire
shareholders.

631
00:50:30,800 --> 00:50:35,720
He emphasized that he was not
trying to control how his money

632
00:50:35,720 --> 00:50:39,880
was used.
Instead, he trusted the

633
00:50:39,880 --> 00:50:45,080
foundation leaders to deploy
resources where they saw the

634
00:50:45,080 --> 00:50:49,520
greatest need.
He urged them to focus on impact

635
00:50:49,760 --> 00:50:54,360
rather than perpetuity, to
address immediate problems

636
00:50:54,640 --> 00:50:58,120
rather than build endowments for
eternity.

637
00:50:59,240 --> 00:51:03,360
He called his approach
philanthropy while living,

638
00:51:03,960 --> 00:51:08,480
noting that giving away money
during his lifetime allowed him

639
00:51:08,480 --> 00:51:12,760
to see the results and to adjust
if necessary.

640
00:51:13,160 --> 00:51:16,600
He also set up mechanisms to
ensure that his estate would be

641
00:51:16,600 --> 00:51:20,400
distributed quickly after his
death, preventing the

642
00:51:20,400 --> 00:51:24,760
accumulation of wealth that
could dilute its effect.

643
00:51:25,160 --> 00:51:30,160
Warren's Family Foundations, The
Susan Thompson Buffett

644
00:51:30,160 --> 00:51:35,560
Foundation, named after his late
first wife, and the foundations

645
00:51:35,560 --> 00:51:39,960
run by his children, Howard,
Susan and Peter, received

646
00:51:39,960 --> 00:51:45,120
significant shares.
Each child pursued different

647
00:51:45,120 --> 00:51:49,480
focus areas reflecting their own
interests and values.

648
00:51:49,840 --> 00:51:54,240
Howard's foundation worked on
agriculture and food security,

649
00:51:54,880 --> 00:52:00,520
Susan's on education and social
justice, and Peter's on social

650
00:52:00,520 --> 00:52:06,320
change and the arts.
Warren offered guidance but did

651
00:52:06,320 --> 00:52:12,320
not dictate specific grants,
believing that decision making

652
00:52:12,320 --> 00:52:17,160
authority should rest with those
closest to the causes.

653
00:52:18,080 --> 00:52:22,400
He saw his role as enabling
rather than directing.

654
00:52:22,800 --> 00:52:27,480
The largest chunk of his fortune
went to the Gates Foundation.

655
00:52:28,360 --> 00:52:32,240
Warren admired the rigorous
approach that Bill and Melinda

656
00:52:32,240 --> 00:52:37,360
took toward philanthropy, using
data and field research to

657
00:52:37,360 --> 00:52:40,200
identify high impact
interventions.

658
00:52:40,560 --> 00:52:46,480
He trusted that their foundation
would continue to address global

659
00:52:46,480 --> 00:52:50,320
health and education issues
effectively.

660
00:52:51,360 --> 00:52:55,920
By giving them Berkshire stock,
he allowed them to benefit from

661
00:52:55,920 --> 00:53:00,080
future growth while ensuring
that his money would not

662
00:53:00,080 --> 00:53:05,320
accumulate indefinitely.
He stipulated that the shares be

663
00:53:05,320 --> 00:53:09,200
spent within 10 years of his
estate being settled,

664
00:53:09,800 --> 00:53:15,720
emphasizing urgency and action.
He sometimes joked that if he

665
00:53:15,720 --> 00:53:19,880
wrote a book about inheritance,
it would be a short volume

666
00:53:19,880 --> 00:53:25,680
entitled Leave the Kids Enough
to Do Anything, but Not Enough

667
00:53:25,680 --> 00:53:29,800
to Do Nothing.
He wanted his children to be

668
00:53:29,800 --> 00:53:34,720
comfortable but motivated to
build their own legacies rather

669
00:53:34,720 --> 00:53:38,560
than living off his.
Warren spoke openly about

670
00:53:38,560 --> 00:53:43,640
philanthropy and interviews and
lectures, explaining his choices

671
00:53:43,640 --> 00:53:47,920
and encouraging others to
consider similar commitments.

672
00:53:48,720 --> 00:53:53,320
He acknowledged that his wealth
gave him the luxury to give away

673
00:53:53,320 --> 00:53:59,400
billions without sacrificing his
lifestyle, but he argued that

674
00:53:59,680 --> 00:54:05,160
generosity was relative.
He praised people who donated

675
00:54:05,160 --> 00:54:09,760
smaller sums relative to their
means and supported local

676
00:54:09,760 --> 00:54:13,280
charities.
He believed that giving could

677
00:54:13,280 --> 00:54:18,920
bring joy and meaning, just as
compounding wealth had brought

678
00:54:18,920 --> 00:54:22,600
independence.
Through his words and actions,

679
00:54:22,960 --> 00:54:28,400
he reframed philanthropy as a
natural extension of successful

680
00:54:28,400 --> 00:54:32,360
investing.
Just as capital grows through

681
00:54:32,360 --> 00:54:37,960
disciplined patience, its impact
can grow through thoughtful,

682
00:54:38,280 --> 00:54:43,320
timely generosity.
As Warren aged, he maintained an

683
00:54:43,320 --> 00:54:49,960
astonishing level of engagement.
Each spring, 10s of thousands of

684
00:54:49,960 --> 00:54:54,680
shareholders flocked to Omaha
for Berkshire's annual meeting.

685
00:54:55,240 --> 00:55:01,040
Affectionately dubbed Woodstock
for Capitalists, the two day

686
00:55:01,040 --> 00:55:05,960
event featured hours of
questions and answers where

687
00:55:05,960 --> 00:55:11,560
Warren and Charlie sat on a
stage, microphones in hand, and

688
00:55:11,560 --> 00:55:17,560
fielded inquiries on everything
from macroeconomics to life

689
00:55:17,560 --> 00:55:20,920
advice.
They answered with humour and

690
00:55:20,920 --> 00:55:25,480
candor, often sprinkling in
stories from their youth or

691
00:55:25,480 --> 00:55:31,600
quoting poets and philosophers.
The arena hummed with the energy

692
00:55:31,600 --> 00:55:36,600
of a concert, but the mood was
calm and reflective.

693
00:55:37,320 --> 00:55:41,040
Shareholders felt as if they
were listening to old friends

694
00:55:41,080 --> 00:55:44,560
share wisdom.
Warren's annual letters grew

695
00:55:44,560 --> 00:55:48,920
longer and richer in insight.
He discussed the performance of

696
00:55:48,920 --> 00:55:53,840
Berkshire's many subsidiaries,
but he also devoted space to

697
00:55:53,840 --> 00:55:59,400
broader lessons about business,
investing and human behavior.

698
00:55:59,760 --> 00:56:04,480
He wrote about why Berkshire
avoided acquisitions driven by

699
00:56:04,480 --> 00:56:11,120
fads, why the company shunned
debt, and why patience paid off.

700
00:56:12,000 --> 00:56:17,080
He acknowledged mistakes such as
purchasing Dexter Shoe Company

701
00:56:17,400 --> 00:56:23,440
with Berkshire stock rather than
cash, a decision he later called

702
00:56:23,680 --> 00:56:28,120
his worst.
He praised managers like Tony

703
00:56:28,120 --> 00:56:34,240
Knisley at Geeko and Paul
Andrews at Tai, crediting them

704
00:56:34,240 --> 00:56:40,000
for Berkshire's success.
His humility and transparency

705
00:56:40,480 --> 00:56:44,080
reinforced the trust
shareholders placed in him.

706
00:56:44,440 --> 00:56:49,000
Succession planning became an
increasingly common topic.

707
00:56:50,040 --> 00:56:53,880
Warren addressed it openly,
noting that Berkshire's board

708
00:56:54,120 --> 00:56:58,920
had identified capable leaders
who could take over when he and

709
00:56:58,920 --> 00:57:04,560
Charlie were gone.
In 2018, he announced that Greg

710
00:57:04,560 --> 00:57:09,200
Abel and Ajit Jain had been
promoted to vice chairman,

711
00:57:09,360 --> 00:57:13,240
overseeing non insurance and
insurance operations,

712
00:57:13,240 --> 00:57:16,440
respectively.
Their promotion signaled the

713
00:57:16,440 --> 00:57:20,360
board's confidence in them as
potential successors.

714
00:57:21,280 --> 00:57:24,640
Warren emphasized that
Berkshire's decentralized

715
00:57:24,640 --> 00:57:28,800
structure and strong culture
would endure beyond any

716
00:57:28,800 --> 00:57:32,480
individual.
He reminded shareholders that

717
00:57:32,480 --> 00:57:37,600
Berkshire had more than 60
operating companies and dozens

718
00:57:37,600 --> 00:57:42,240
of talented managers who ran
them independently.

719
00:57:43,240 --> 00:57:48,120
The job of the CEO, in his view,
was primarily to allocate

720
00:57:48,120 --> 00:57:52,280
capital wisely and maintain the
company's culture.

721
00:57:52,600 --> 00:57:57,600
As he approached his mid 90s,
Warren continued to arrive at

722
00:57:57,600 --> 00:58:01,080
the office early and read for
hours.

723
00:58:01,720 --> 00:58:06,240
He travelled less but kept in
touch with managers and friends

724
00:58:06,240 --> 00:58:11,880
by phone and e-mail.
He followed world events, read

725
00:58:11,880 --> 00:58:16,760
widely and occasionally wrote op
eds.

726
00:58:17,120 --> 00:58:20,600
He took walks in the
neighborhood with family members

727
00:58:20,880 --> 00:58:25,600
and attended college basketball
games at Creighton University,

728
00:58:26,160 --> 00:58:28,880
just a few minutes from his
home.

729
00:58:29,760 --> 00:58:34,480
He still played bridge, though
his sessions sometimes moved to

730
00:58:34,480 --> 00:58:37,880
video calls when travel was
impractical.

731
00:58:38,280 --> 00:58:44,480
His mind remained sharp, his
jokes quick and his curiosity

732
00:58:45,120 --> 00:58:49,440
intact.
The rhythm of his days, the

733
00:58:49,440 --> 00:58:54,280
steady cadence of reading,
thinking and writing anchored

734
00:58:54,280 --> 00:59:00,520
him even as the years moved on.
In public remarks, Warren

735
00:59:00,520 --> 00:59:05,240
expressed gratitude for his good
health and for the opportunities

736
00:59:05,400 --> 00:59:09,600
he had enjoyed.
He acknowledged that luck had

737
00:59:09,600 --> 00:59:14,320
played a role, from being born
in a stable country to having

738
00:59:14,320 --> 00:59:18,600
supportive parents.
He urged younger generations to

739
00:59:18,600 --> 00:59:22,960
find mentors and friends who
challenged them to grow.

740
00:59:23,680 --> 00:59:28,720
He continued to quote his father
and Charlie, passing along

741
00:59:28,720 --> 00:59:33,480
lessons that had guided him.
He looked ahead with optimism,

742
00:59:33,880 --> 00:59:38,120
noting that despite challenges,
America's economic engine

743
00:59:38,120 --> 00:59:40,440
remained innovative and
resilient.

744
00:59:41,320 --> 00:59:45,920
He reminded audiences that sound
principles do not become

745
00:59:45,920 --> 00:59:50,240
obsolete.
Honesty, patience, and a

746
00:59:50,240 --> 00:59:54,440
willingness to learn from
mistakes remain the bedrock of a

747
00:59:54,440 --> 00:59:58,360
fulfilling life and successful
enterprise.

748
00:59:58,760 --> 01:00:05,040
In November 2025, Warren made
headlines with a heartfelt

749
01:00:05,040 --> 01:00:08,320
Thanksgiving message to his
shareholders.

750
01:00:09,280 --> 01:00:14,600
At 95, he announced that he was
stepping back from writing the

751
01:00:14,600 --> 01:00:19,520
company's annual report and from
speaking at the annual meeting.

752
01:00:20,560 --> 01:00:25,200
I'm going quiet, he wrote with
characteristic humor, explaining

753
01:00:25,200 --> 01:00:29,640
that he felt it was time for
fresh voices to take the stage.

754
01:00:30,000 --> 01:00:34,520
He reiterated that Greg Abel,
who had proven himself over

755
01:00:34,520 --> 01:00:40,080
decades at Berkshire Hathaway
Energy and in overseeing non

756
01:00:40,080 --> 01:00:45,040
insurance businesses, would
become the new chief executive

757
01:00:45,280 --> 01:00:50,120
at year's end.
Warren praised Abel's energy,

758
01:00:50,360 --> 01:00:55,080
honesty and judgment, urging
shareholders to support him.

759
01:00:55,440 --> 01:00:59,840
He promised to remain available
as a resource and to continue

760
01:00:59,840 --> 01:01:04,760
writing annual Thanksgiving
letters, a tradition he

761
01:01:04,760 --> 01:01:07,800
cherished.
The same message revealed a

762
01:01:07,800 --> 01:01:14,440
significant act of generosity.
Warren converted 1 to 800 of his

763
01:01:14,440 --> 01:01:21,480
Berkshire A shares into 2.7
million Class B shares, which he

764
01:01:21,480 --> 01:01:24,360
donated to four family
foundations.

765
01:01:24,760 --> 01:01:30,760
The gifts worth more than 1.3
billion that were intended to

766
01:01:30,760 --> 01:01:36,040
accelerate the distribution of
his fortune during his lifetime.

767
01:01:37,000 --> 01:01:41,720
He explained that his children
who ran these foundations were

768
01:01:41,720 --> 01:01:46,560
in their 70s and that he wanted
to ensure they could direct his

769
01:01:46,560 --> 01:01:49,960
wealth before alternate trustees
were required.

770
01:01:50,400 --> 01:01:55,440
He expressed gratitude for the
privilege of being able to give

771
01:01:55,520 --> 01:02:00,920
and encouraged others to share
their success with those less

772
01:02:00,920 --> 01:02:04,840
fortunate.
In the letter, Warren reminisced

773
01:02:04,840 --> 01:02:10,880
about his early life, recalling
stories from Omaha in the 1930s.

774
01:02:11,760 --> 01:02:16,480
He wrote about his doctor,
Harley Hotts, who saved his life

775
01:02:16,480 --> 01:02:22,280
with a timely appendectomy,
about his Aunt Edie, who gave

776
01:02:22,280 --> 01:02:26,360
him a fingerprinting set that
entertained him during recovery,

777
01:02:27,120 --> 01:02:31,640
and about his third grade
teacher who asked his classmates

778
01:02:31,640 --> 01:02:34,880
to write him letters while he
recuperated.

779
01:02:35,280 --> 01:02:40,040
He shared anecdotes about
missing an early chance to meet

780
01:02:40,040 --> 01:02:43,720
Charlie Munger and about the
community that shaped him.

781
01:02:44,880 --> 01:02:48,880
These personal touches
highlighted the continuity

782
01:02:48,880 --> 01:02:54,280
between the boy who sold chewing
gum and the philanthropist who

783
01:02:54,280 --> 01:02:59,200
was giving away billions.
They also underscored his belief

784
01:02:59,520 --> 01:03:05,000
that luck and community played
critical roles in his success.

785
01:03:05,360 --> 01:03:10,240
Warren's announcement of his
retirement from center stage was

786
01:03:10,240 --> 01:03:14,680
met with both gratitude and
nostalgia.

787
01:03:15,680 --> 01:03:20,760
Shareholders and admirers around
the world reflected on decades

788
01:03:20,760 --> 01:03:25,000
of letters and meetings that had
shaped their understanding of

789
01:03:25,080 --> 01:03:29,240
business and life.
Many were reassured by the

790
01:03:29,240 --> 01:03:34,320
clarity of his succession plan
and by his continued commitment

791
01:03:34,760 --> 01:03:37,920
to communicate through annual
messages.

792
01:03:38,960 --> 01:03:44,200
The act of converting A shares
to B shares for philanthropic

793
01:03:44,200 --> 01:03:50,760
purposes demonstrated once again
his attention to fairness and

794
01:03:50,760 --> 01:03:53,920
efficiency.
He had long said that at his

795
01:03:53,920 --> 01:03:58,720
death, his estate would be
settled quickly and his wealth

796
01:03:58,720 --> 01:04:04,400
distributed within a decade.
By accelerating gifts while

797
01:04:04,400 --> 01:04:09,760
still alive, he increased the
likelihood that his resources

798
01:04:10,040 --> 01:04:15,480
would make a meaningful impact.
The 2025 letter closed on a

799
01:04:15,480 --> 01:04:19,480
reflective note Warren wrote
about being surprised and

800
01:04:19,480 --> 01:04:24,080
grateful to have lived so long.
He acknowledged that his life

801
01:04:24,080 --> 01:04:28,960
had been full of extraordinary
experiences and that he was at

802
01:04:28,960 --> 01:04:34,600
peace with the transition ahead.
He reassured readers that

803
01:04:34,600 --> 01:04:38,720
Berkshire's future was bright
under Gregg Abel and that his

804
01:04:38,720 --> 01:04:44,480
own future would be quieter but
still connected to the company

805
01:04:44,480 --> 01:04:47,600
he loved.
He thanked shareholders for

806
01:04:47,600 --> 01:04:52,320
their trust and kindness over
the years and hinted that his

807
01:04:52,320 --> 01:04:57,880
next Thanksgiving messages would
focus more on philanthropy and

808
01:04:57,880 --> 01:05:01,320
personal reflections than on
business.

809
01:05:02,200 --> 01:05:08,240
As always, he signed off with
warmth and humility, inviting

810
01:05:08,240 --> 01:05:11,360
readers to share in his
gratitude.

811
01:05:11,720 --> 01:05:17,720
Not long after Warren announced
his transition, news broke of

812
01:05:17,720 --> 01:05:21,880
Berkshire's rare venture into
big technology.

813
01:05:22,840 --> 01:05:27,400
Regulatory filings revealed that
the conglomerate had purchased

814
01:05:27,400 --> 01:05:32,880
nearly 18,000,000 shares of
Alphabet, Google's parent

815
01:05:32,880 --> 01:05:37,160
company, worth roughly 4.9
billion.

816
01:05:37,560 --> 01:05:41,640
The investment surprised many
who remembered Warren's long

817
01:05:41,640 --> 01:05:46,440
standing reluctance to buy into
tech companies he didn't fully

818
01:05:46,440 --> 01:05:51,160
understand.
He had famously admitted that he

819
01:05:51,160 --> 01:05:55,160
and Charlie regretted missing
Google and Amazon earlier,

820
01:05:55,360 --> 01:06:00,240
saying they screwed up by not
recognizing their potential.

821
01:06:00,520 --> 01:06:05,120
Despite seeing their impact on
Geeko's advertising bills.

822
01:06:05,480 --> 01:06:09,520
The new stake signaled a
willingness to embrace a

823
01:06:09,520 --> 01:06:14,240
business model that, while
rooted in advertising and data,

824
01:06:14,840 --> 01:06:18,160
had become integral to everyday
life.

825
01:06:18,520 --> 01:06:23,440
Alphabet's appeal lay partly in
its dominant search engine and

826
01:06:23,440 --> 01:06:29,000
growing cloud business, but also
in its financial strength and

827
01:06:29,000 --> 01:06:34,040
global reach.
The company generated large cash

828
01:06:34,040 --> 01:06:39,680
flows, carried little debt and
had a history of reinvesting in

829
01:06:39,680 --> 01:06:44,280
new technologies.
Berkshire's investment came at a

830
01:06:44,280 --> 01:06:47,960
time when the market was
wrestling with questions about

831
01:06:47,960 --> 01:06:50,200
artificial intelligence
spending.

832
01:06:50,600 --> 01:06:54,960
Tech giants were investing
billions in data centers and

833
01:06:54,960 --> 01:06:59,840
chips, raising concerns about
whether returns would justify

834
01:06:59,840 --> 01:07:03,640
the outlays.
Warren acknowledged that the

835
01:07:03,640 --> 01:07:08,320
valuation of tech companies was
higher than traditional

836
01:07:08,320 --> 01:07:14,120
industrial firms, but believed
that Alphabet's position and

837
01:07:14,120 --> 01:07:18,760
cash generation offered a
reasonable margin of safety.

838
01:07:19,120 --> 01:07:24,400
He also noted that the purchase
might have been initiated by one

839
01:07:24,400 --> 01:07:29,720
of Berkshire's portfolio
managers, Todd Combs or Ted

840
01:07:29,720 --> 01:07:34,360
Weschler, who had gradually
expanded the company's exposure

841
01:07:34,360 --> 01:07:38,520
to technology.
The Alphabet stake coincided

842
01:07:38,520 --> 01:07:42,720
with Berkshire trimming its
holdings in Apple and Bank of

843
01:07:42,720 --> 01:07:46,320
America.
However, he reduced the position

844
01:07:46,320 --> 01:07:51,160
slightly, a move interpreted by
some as portfolio maintenance

845
01:07:51,440 --> 01:07:53,640
rather than a change in
conviction.

846
01:07:54,760 --> 01:07:58,600
Berkshire also continued to
build its cash pile, which

847
01:07:58,600 --> 01:08:04,960
reached a record high of more
than $380 billion in 2025.

848
01:08:05,960 --> 01:08:10,520
Warren often said he disliked
holding cash because it earned

849
01:08:10,520 --> 01:08:15,640
little, but he preferred
inactivity to overpaying for

850
01:08:15,640 --> 01:08:20,080
mediocre opportunities.
The combination of new tech

851
01:08:20,080 --> 01:08:25,200
exposure and a growing cash
reserve suggested that Berkshire

852
01:08:25,200 --> 01:08:29,920
was balancing caution with
selective optimism.

853
01:08:30,319 --> 01:08:34,200
Observers debated whether the
Alphabet investment signaled a

854
01:08:34,200 --> 01:08:38,960
permanent shift in Berkshire's
strategy or a late career

855
01:08:38,960 --> 01:08:42,640
flourish.
Warren, who was preparing to

856
01:08:42,640 --> 01:08:48,960
step down as CEO, emphasized
that the fundamental principles

857
01:08:49,080 --> 01:08:54,479
remained unchanged.
Understand the business, ensure

858
01:08:54,479 --> 01:09:00,000
it has durable advantages, and
buy at a sensible price.

859
01:09:00,279 --> 01:09:04,200
Alphabets dominance in search,
video and cloud computing

860
01:09:04,600 --> 01:09:09,800
arguably met those criteria.
And while technology cycles move

861
01:09:09,800 --> 01:09:13,680
faster than those in consumer
goods or railroads, the

862
01:09:13,760 --> 01:09:18,399
underlying need for information
and computing power seemed

863
01:09:18,399 --> 01:09:23,000
unlikely to vanish.
The move also reflected Warren's

864
01:09:23,000 --> 01:09:28,040
willingness to acknowledge past
oversights and to evolve.

865
01:09:28,920 --> 01:09:32,399
He had long admired companies
like Coca-Cola for their

866
01:09:32,399 --> 01:09:36,920
simplicity and stability.
But he also recognized that

867
01:09:37,240 --> 01:09:43,240
innovation could create new
moats, and that ignoring those

868
01:09:43,240 --> 01:09:50,000
opportunities entirely could be
as risky as chasing every fad.

869
01:09:50,359 --> 01:09:54,760
In his annual letters, he had
confessed to missing companies

870
01:09:54,760 --> 01:09:59,920
like Intel, Google and Amazon,
and to learning from those

871
01:09:59,920 --> 01:10:03,400
omissions.
The alphabet stakes showed that

872
01:10:03,400 --> 01:10:09,480
even in his mid 90s, he remained
open to learning and change.

873
01:10:10,000 --> 01:10:15,080
He'd offered a final lesson that
staying true to core principles

874
01:10:15,480 --> 01:10:20,000
does not mean refusing to adapt
when the world shifts.

875
01:10:20,400 --> 01:10:25,840
The 2025 earnings season
highlighted Berkshire's capacity

876
01:10:25,840 --> 01:10:30,280
for restraint.
In its third quarter report, the

877
01:10:30,280 --> 01:10:36,160
company disclosed a cash
position approaching 300 to 81

878
01:10:36,600 --> 01:10:40,680
billion, the highest in its
history.

879
01:10:41,040 --> 01:10:45,680
This mountain of liquidity
raised eyebrows, especially

880
01:10:45,680 --> 01:10:50,160
because Berkshire did not
repurchase any of its own stock

881
01:10:50,160 --> 01:10:54,400
during the quarter, something it
had done aggressively in recent

882
01:10:54,400 --> 01:10:57,120
years.
Warren explained that he would

883
01:10:57,120 --> 01:11:01,440
buy back shares only when they
were trading below intrinsic

884
01:11:01,440 --> 01:11:04,840
value.
He felt the price at that moment

885
01:11:05,040 --> 01:11:07,960
did not offer enough margin of
safety.

886
01:11:08,600 --> 01:11:12,560
His decision underscored his
discipline.

887
01:11:13,200 --> 01:11:18,240
Even with vast resources at his
disposal, he would not chase

888
01:11:18,240 --> 01:11:21,560
investments that failed his
criteria.

889
01:11:21,920 --> 01:11:26,480
Analysts noted that Berkshire
had sold more stocks than it

890
01:11:26,480 --> 01:11:30,840
bought in the quarter,
reflecting caution about overall

891
01:11:30,840 --> 01:11:35,800
market valuations.
Warren had long warned investors

892
01:11:35,800 --> 01:11:40,560
against trying to time the
market, but he also acknowledged

893
01:11:40,840 --> 01:11:44,520
that there were periods when
high valuations limited

894
01:11:44,520 --> 01:11:48,240
opportunities.
He compared investing to playing

895
01:11:48,240 --> 01:11:53,080
baseball without strikes.
You could stand at the plate all

896
01:11:53,080 --> 01:11:57,520
day waiting for the right pitch.
This analogy reminded

897
01:11:57,520 --> 01:12:00,840
shareholders that patience is
not passivity.

898
01:12:01,440 --> 01:12:05,840
It is an active choice to avoid
swinging at poor pitches.

899
01:12:06,640 --> 01:12:10,600
The cash pile, while
unproductive in the short term,

900
01:12:11,000 --> 01:12:14,560
was a reservoir of opportunity
for the future.

901
01:12:14,920 --> 01:12:19,560
Critics worried that holding so
much cash signaled pessimism

902
01:12:19,560 --> 01:12:23,720
about the economy.
Warren countered that he simply

903
01:12:23,720 --> 01:12:26,800
had not found enough attractive
deals.

904
01:12:27,520 --> 01:12:32,440
He was willing to wait, knowing
that market conditions would

905
01:12:32,440 --> 01:12:38,200
eventually present bargains.
His past actions reinforced this

906
01:12:38,200 --> 01:12:41,360
view.
During the financial crisis of

907
01:12:41,360 --> 01:12:45,760
2008, Berkshire invested
billions in companies like

908
01:12:45,760 --> 01:12:49,360
Goldman Sachs, General Electric
and Wrigley.

909
01:12:49,760 --> 01:12:55,440
When panic created attractive
terms, holding cash allowed him

910
01:12:55,440 --> 01:12:59,720
to see such opportunities
without depending on borrowed

911
01:12:59,720 --> 01:13:02,880
money.
He quoted his mentor Benjamin

912
01:13:02,880 --> 01:13:07,480
Graham's observation that
investing is most intelligent

913
01:13:07,960 --> 01:13:13,760
when it is most businesslike.
To him, that meant being willing

914
01:13:13,760 --> 01:13:18,560
to say no until a rational yes
appeared.

915
01:13:18,960 --> 01:13:22,680
The record cash balance also
reflected Berkshire's earnings

916
01:13:22,680 --> 01:13:25,640
power.
The company's operating

917
01:13:25,640 --> 01:13:30,480
businesses, insurance,
railroads, utilities,

918
01:13:30,640 --> 01:13:35,880
manufacturing and retail
continued to generate

919
01:13:35,880 --> 01:13:41,200
substantial profits.
Their reliable cash flows funded

920
01:13:41,200 --> 01:13:46,560
capital expenditures, dividends
to Berkshire and the

921
01:13:46,560 --> 01:13:52,480
accumulation of reserves.
Warren reminded shareholders

922
01:13:52,720 --> 01:13:58,760
that these businesses were not
glamorous, but steady insurance

923
01:13:58,760 --> 01:14:00,840
underwriting remained
disciplined.

924
01:14:01,280 --> 01:14:06,320
The railroad transported goods
across the country, energy units

925
01:14:06,320 --> 01:14:11,080
invested in wind and solar
projects, and manufacturing

926
01:14:11,080 --> 01:14:15,480
companies produced a vast array
of products.

927
01:14:16,480 --> 01:14:20,680
This diversity insulated
Berkshire from the yoops and

928
01:14:20,680 --> 01:14:25,000
downs of any single industry.
In communications with

929
01:14:25,000 --> 01:14:30,680
shareholders, Warren cautioned
that high valuations and ample

930
01:14:30,680 --> 01:14:36,400
liquidity could tempt investors
into riskier assets.

931
01:14:37,280 --> 01:14:42,960
He urged them not to confuse
activity with productivity.

932
01:14:43,080 --> 01:14:47,000
He said that cash, though
unattractive as a long term

933
01:14:47,000 --> 01:14:51,040
investment, provided A strategic
advantage.

934
01:14:51,520 --> 01:14:55,600
It gave Berkshire the ability to
act decisively when the right

935
01:14:55,600 --> 01:14:59,800
opportunity rose.
He acknowledged that holding

936
01:14:59,800 --> 01:15:05,480
cash required psychological
strength because watching others

937
01:15:05,480 --> 01:15:09,200
make quick gains could induce
envy.

938
01:15:09,520 --> 01:15:13,760
But he stressed that investing
was not a competition with

939
01:15:13,760 --> 01:15:18,200
anyone but oneself.
The patience he practiced with

940
01:15:18,200 --> 01:15:22,560
cash mirrored the patience he
had learned as a child saving

941
01:15:22,560 --> 01:15:26,880
pennies, a constant thread
through his life's work.

942
01:15:27,200 --> 01:15:32,000
Succession planning at Berkshire
was not only about naming a

943
01:15:32,000 --> 01:15:36,800
replacement, it involved
cultivating a culture that could

944
01:15:36,800 --> 01:15:42,640
endure beyond any individual.
Warren often said that Berkshire

945
01:15:42,640 --> 01:15:48,080
was built to last for 100 years
or more and that his duty was to

946
01:15:48,080 --> 01:15:52,680
ensure that values and systems
were in place to guide future

947
01:15:52,680 --> 01:15:56,680
leaders.
Greg Abel, who had overseen

948
01:15:56,680 --> 01:16:02,040
Berkshire Hathaway Energy since
2000, was chosen to succeed

949
01:16:02,040 --> 01:16:07,560
Warren as chief executive.
Greg was known for his tireless

950
01:16:07,560 --> 01:16:12,160
work ethic, straightforward
communication and ability to

951
01:16:12,160 --> 01:16:18,000
manage complex operations.
Under his leadership, the energy

952
01:16:18,000 --> 01:16:23,920
unit invested heavily in wind
and solar projects, expanding

953
01:16:23,920 --> 01:16:29,120
its renewable portfolio and
demonstrating A commitment to

954
01:16:29,120 --> 01:16:34,200
long term sustainability.
Ajit Jain, who managed

955
01:16:34,240 --> 01:16:38,280
Berkshire's insurance
operations, was another key

956
01:16:38,280 --> 01:16:42,320
figure.
Born in India, Ajit joined

957
01:16:42,320 --> 01:16:47,760
Berkshire in 1986 after a chance
meeting with Warren's former

958
01:16:47,760 --> 01:16:53,520
colleague Michael Goldberg.
Over the decades, Ajit proved

959
01:16:53,520 --> 01:16:58,760
himself a master underwriter,
crafting reinsurance policies

960
01:16:58,960 --> 01:17:03,880
for complex risks like natural
disasters and aviation.

961
01:17:04,880 --> 01:17:10,040
His disciplined approach and
creativity generated billions in

962
01:17:10,040 --> 01:17:12,920
profits.
Warren said on multiple

963
01:17:12,920 --> 01:17:18,760
occasions that if you could
clone Ajit, it would be the best

964
01:17:18,760 --> 01:17:24,880
investment Berkshire could make.
Together, Greg and Agit provided

965
01:17:24,880 --> 01:17:30,160
complementary strengths in
operations and insurance, 2

966
01:17:30,320 --> 01:17:36,280
pillars of Berkshire's success
Todd Combs and Ted Weschler,

967
01:17:36,760 --> 01:17:41,960
portfolio managers hired in the
2000 tens, handled portions of

968
01:17:41,960 --> 01:17:45,320
Berkshire's vast investment
portfolio.

969
01:17:46,360 --> 01:17:50,600
They had track records of
thoughtful investing and managed

970
01:17:50,840 --> 01:17:55,640
10s of billions of dollars.
Warren gave them increasing

971
01:17:55,640 --> 01:18:00,760
responsibility, allowing them to
make independent decisions and

972
01:18:01,120 --> 01:18:04,960
learn from their results.
Their presence ensured that

973
01:18:04,960 --> 01:18:09,440
Berkshire would have seasoned
investors to guide capital

974
01:18:09,440 --> 01:18:13,520
allocation.
Warren noted that they also ran

975
01:18:13,600 --> 01:18:18,720
operating businesses.
Todd headed Geeko, while Ted

976
01:18:18,720 --> 01:18:24,240
served as chairman of Pilot
Flying J, giving them experience

977
01:18:24,240 --> 01:18:29,080
beyond the stock market, Beyond
individuals, Warren stressed

978
01:18:29,080 --> 01:18:33,680
that Berkshire's decentralized
structure would remain intact.

979
01:18:34,360 --> 01:18:38,960
Each subsidiary operated
autonomously with its own

980
01:18:38,960 --> 01:18:43,160
management and culture.
Headquarters had a small staff

981
01:18:43,520 --> 01:18:46,800
and decisions were made without
bureaucracy.

982
01:18:47,480 --> 01:18:52,120
This autonomy attracted
entrepreneurs who wanted to sell

983
01:18:52,120 --> 01:18:55,640
their companies but continue
leading them.

984
01:18:56,600 --> 01:19:01,080
Warren often said that Berkshire
bought businesses with the

985
01:19:01,080 --> 01:19:03,360
intention of owning them
forever.

986
01:19:03,720 --> 01:19:08,920
This promise of permanence gave
managers confidence to invest

987
01:19:09,320 --> 01:19:15,360
for the long term without fear
of being sold at the next market

988
01:19:15,360 --> 01:19:19,240
cycle.
The trust placed in managers

989
01:19:19,520 --> 01:19:25,080
created loyalty and stability.
As he prepared to hand over

990
01:19:25,080 --> 01:19:29,320
leadership, Warren wrote that he
would remain available for

991
01:19:29,320 --> 01:19:34,360
consultation and would stay on
the board as long as he felt

992
01:19:34,360 --> 01:19:37,800
useful.
He reminded shareholders that

993
01:19:37,800 --> 01:19:42,360
change is inevitable and that
succession is a mark of

994
01:19:42,360 --> 01:19:47,080
strength, not weakness.
He expressed full confidence in

995
01:19:47,080 --> 01:19:52,120
Greg, Agit, Todd, Ted and the
many other managers.

996
01:19:52,760 --> 01:19:57,200
He urged shareholders to judge
them on their adherence to

997
01:19:57,200 --> 01:20:02,160
Berkshire Score principles
rather than on attempts to mimic

998
01:20:02,440 --> 01:20:07,560
his personal style in essence.
He wanted the culture of

999
01:20:07,560 --> 01:20:12,560
integrity, patience and
rationality to endure.

1000
01:20:12,920 --> 01:20:17,000
By building a system that
rewarded those traits, he hoped

1001
01:20:17,040 --> 01:20:22,240
Berkshire would continue to
thrive long after his own quiet

1002
01:20:22,240 --> 01:20:25,520
retirement.
Charlie Munger's presence loomed

1003
01:20:25,520 --> 01:20:27,920
large throughout Warren's
career.

1004
01:20:28,920 --> 01:20:34,200
The two men met in 1959 when a
mutual friend introduced them

1005
01:20:34,200 --> 01:20:40,240
over dinner in Omaha.
Charlie, trained as a lawyer and

1006
01:20:40,240 --> 01:20:43,920
running his own Investment
Partnership in California,

1007
01:20:44,560 --> 01:20:48,240
shared Warren's passion for
business and humor.

1008
01:20:48,640 --> 01:20:53,880
They quickly recognized in each
other a complimentary intellect.

1009
01:20:54,880 --> 01:20:58,960
Charlie encouraged Warren to
broaden his lens beyond the

1010
01:20:58,960 --> 01:21:04,480
cigar butt approach and to
consider businesses with strong

1011
01:21:04,480 --> 01:21:09,520
economics, even if they were not
statistically cheap.

1012
01:21:09,920 --> 01:21:15,560
His sharp wit and ability to cut
through complexity became a

1013
01:21:15,560 --> 01:21:19,840
perfect counterbalance to
Warren's methodical analysis.

1014
01:21:20,840 --> 01:21:25,320
Their conversations were filled
with both laughter and debate,

1015
01:21:25,920 --> 01:21:29,680
each pushing the other to refine
his thinking.

1016
01:21:30,000 --> 01:21:35,040
For more than 60 years, they
worked together, talking every

1017
01:21:35,040 --> 01:21:38,360
day and making countless
decisions.

1018
01:21:39,320 --> 01:21:43,640
Charlie's influence can be seen
in Berkshire's pivot toward

1019
01:21:43,640 --> 01:21:48,680
quality companies like See's
Candies and Coca-Cola.

1020
01:21:49,080 --> 01:21:53,960
He coined phrases such as it's
better to buy a wonderful

1021
01:21:53,960 --> 01:21:58,440
company at a fair price than a
fair company at a wonderful

1022
01:21:58,440 --> 01:22:02,840
price, which Warren adopted
wholeheartedly.

1023
01:22:03,920 --> 01:22:08,920
Charlie also introduced Warren
to the idea of mental models,

1024
01:22:09,480 --> 01:22:14,440
frameworks for thinking drawn
from multiple disciplines, which

1025
01:22:14,440 --> 01:22:17,200
helped them avoid narrow
perspectives.

1026
01:22:17,600 --> 01:22:22,920
He famously said that the first
rule of compounding was never to

1027
01:22:22,920 --> 01:22:28,200
interrupt it unnecessarily, a
concept that applied equally to

1028
01:22:28,200 --> 01:22:34,760
money and to learning.
In November 2023, Charlie passed

1029
01:22:34,760 --> 01:22:39,640
away at the age of 99, leaving
Warren without his closest

1030
01:22:39,640 --> 01:22:44,240
partner for the first time in
over six decades.

1031
01:22:45,240 --> 01:22:50,240
Warren described Charlie as the
architect of Berkshire, saying

1032
01:22:50,240 --> 01:22:53,600
that he had done more to shape
its culture and investment

1033
01:22:53,600 --> 01:22:58,840
philosophy than anyone else.
The loss was deeply felt by

1034
01:22:58,840 --> 01:23:01,680
shareholders and admirers around
the world.

1035
01:23:02,440 --> 01:23:07,840
In his tribute, Warren wrote
that Charlie had the best 32nd

1036
01:23:07,840 --> 01:23:13,320
mind he had ever encountered and
that his ability to see the

1037
01:23:13,320 --> 01:23:17,320
essence of a problem quickly was
unmatched.

1038
01:23:18,160 --> 01:23:22,920
He thanked Charlie for being not
just a partner, but a teacher

1039
01:23:23,320 --> 01:23:26,920
and a friend.
The absence of Charlie's voice

1040
01:23:26,920 --> 01:23:32,240
at the annual meeting in 2024
was palpable.

1041
01:23:33,200 --> 01:23:37,400
Warren sat on the stage without
the familiar banter, but he

1042
01:23:37,400 --> 01:23:41,600
invoked Charlie's wisdom often.
He reminded the audience of

1043
01:23:41,600 --> 01:23:46,680
Charlie's quips, like the
importance of avoiding envy and

1044
01:23:46,680 --> 01:23:51,800
the value of reading widely.
He shared stories of arguments

1045
01:23:51,800 --> 01:23:57,760
they had, moments when Charlie
changed his mind, and jokes that

1046
01:23:57,760 --> 01:24:01,200
kept them laughing when
decisions were hard.

1047
01:24:01,600 --> 01:24:06,840
He admitted that Berkshire would
feel different, but he pledged

1048
01:24:06,880 --> 01:24:10,920
to carry on the principles they
had forged together.

1049
01:24:11,960 --> 01:24:17,360
He encouraged younger investors
to read Charlie's writings and

1050
01:24:17,360 --> 01:24:21,760
to study his approach to
thinking in private moments.

1051
01:24:22,080 --> 01:24:26,760
Warren continued to hear
Charlie's voice in his head when

1052
01:24:26,760 --> 01:24:30,880
evaluating a business.
He imagined what Charlie would

1053
01:24:30,880 --> 01:24:35,440
say about its competitive
position or management's

1054
01:24:35,440 --> 01:24:39,680
incentives.
He recalled the times Charlie

1055
01:24:39,680 --> 01:24:44,440
had stopped him from making poor
decisions and the times Charlie

1056
01:24:44,440 --> 01:24:47,720
had urged him to take bold
steps.

1057
01:24:48,000 --> 01:24:52,360
The friendship had left an
imprint deeper than anyone

1058
01:24:52,360 --> 01:24:56,480
investment.
Warren found solace in knowing

1059
01:24:56,480 --> 01:25:01,000
that their ideas lived on in
Berkshire's culture and in the

1060
01:25:01,000 --> 01:25:05,600
millions of people who had read
their letters and learned from

1061
01:25:05,600 --> 01:25:09,960
their example.
As he drifted toward retirement,

1062
01:25:10,440 --> 01:25:16,920
he carried with him Charlie's
counsel to think clearly, to act

1063
01:25:16,920 --> 01:25:21,640
rationally, and to remain humble
in success.

1064
01:25:22,000 --> 01:25:26,560
Warren's Thanksgiving letters
evolved into meditative

1065
01:25:26,560 --> 01:25:31,560
reflections on the future.
He wrote about his intention to

1066
01:25:31,840 --> 01:25:36,840
continue giving while living,
noting that he had transferred

1067
01:25:36,840 --> 01:25:41,800
billions of dollars in Berkshire
stock to the Susan Thompson

1068
01:25:41,800 --> 01:25:46,880
Buffett Foundation and to the
foundations run by his children.

1069
01:25:47,320 --> 01:25:54,760
His gifts in July 2025 worth
more than 6 billion included a

1070
01:25:54,760 --> 01:25:59,280
large donation to the Bill and
Melinda Gates Foundation.

1071
01:26:00,080 --> 01:26:05,520
He explained that his estate
plan would direct about 99 nine

1072
01:26:05,520 --> 01:26:10,800
.5% of his wealth to
philanthropy within 10 years

1073
01:26:10,800 --> 01:26:15,080
after his death.
He wanted his children to act as

1074
01:26:15,080 --> 01:26:19,880
trustees of his fortune, but not
to bear the burden alone.

1075
01:26:20,520 --> 01:26:24,520
He named successor trustees to
step in if needed.

1076
01:26:25,520 --> 01:26:30,240
He made clear that his will
included no additional gifts to

1077
01:26:30,240 --> 01:26:35,240
the Gates Foundation, as he had
already fulfilled his pledge.

1078
01:26:35,600 --> 01:26:39,880
In these letters, he
acknowledged that his children

1079
01:26:39,880 --> 01:26:45,080
were in their 70s and that time
was of the essence.

1080
01:26:45,800 --> 01:26:49,760
He increased the pace of his
gifts to ensure they could

1081
01:26:49,760 --> 01:26:53,640
deploy the funds while still
active.

1082
01:26:54,000 --> 01:26:59,120
He assured them they did not
need to perform miracles, they

1083
01:26:59,120 --> 01:27:03,360
simply needed to do somewhat
better than government programs

1084
01:27:03,360 --> 01:27:08,560
or average philanthropy.
He emphasized that failures and

1085
01:27:08,560 --> 01:27:14,640
disappointments were inevitable
and that he had experienced his

1086
01:27:14,640 --> 01:27:17,920
share.
He urged them to be courageous

1087
01:27:18,200 --> 01:27:23,000
and to learn from setbacks.
He believed that good

1088
01:27:23,000 --> 01:27:27,360
intentions, combined with
intelligence and persistence,

1089
01:27:27,640 --> 01:27:33,240
would yield meaningful results.
Warren also shared thoughts on

1090
01:27:33,240 --> 01:27:38,680
broader societal issues.
He wrote about the importance of

1091
01:27:38,680 --> 01:27:44,200
Fair taxation, arguing that
wealthy individuals should pay

1092
01:27:44,200 --> 01:27:51,160
more to support public goods.
He supported policies that

1093
01:27:51,160 --> 01:27:58,400
levelled the playing field, such
as improved education and health

1094
01:27:58,400 --> 01:28:01,520
care.
He acknowledged the challenges

1095
01:28:01,520 --> 01:28:07,760
of climate change and praised
companies that were investing in

1096
01:28:07,760 --> 01:28:12,560
renewable energy.
He warned against political

1097
01:28:12,560 --> 01:28:18,600
polarization, encouraging people
to look for common ground and to

1098
01:28:18,600 --> 01:28:21,680
respect those with different
views.

1099
01:28:22,760 --> 01:28:27,320
These reflections showed that
his concern for the world

1100
01:28:27,320 --> 01:28:31,200
extended far beyond corporate
earnings.

1101
01:28:31,640 --> 01:28:36,240
He continued to encourage others
to consider philanthropy,

1102
01:28:36,920 --> 01:28:42,600
reminding readers that giving
was not the exclusive domain of

1103
01:28:42,600 --> 01:28:47,440
billionaires.
He cited stories of people who

1104
01:28:47,440 --> 01:28:52,880
made modest donations that had a
profound impact in their

1105
01:28:52,880 --> 01:28:58,320
communities.
He argued that even small acts

1106
01:28:58,320 --> 01:29:04,440
of generosity could inspire
others and create a ripple

1107
01:29:04,440 --> 01:29:08,120
effect.
He believed that the collective

1108
01:29:08,120 --> 01:29:14,120
power of millions of thoughtful
donors was as important as a few

1109
01:29:14,120 --> 01:29:18,840
large gifts.
He called on business leaders to

1110
01:29:18,840 --> 01:29:25,040
integrate social responsibility
into their operations, not as an

1111
01:29:25,040 --> 01:29:29,040
afterthought, but as a core
principle.

1112
01:29:29,400 --> 01:29:34,440
Through these messages, Warren
connected his early fascination

1113
01:29:34,440 --> 01:29:40,560
with compounding to the idea of
compounding social good.

1114
01:29:41,440 --> 01:29:46,880
Just as money invested wisely
can grow exponentially, he

1115
01:29:46,880 --> 01:29:52,160
believed that resources devoted
to education, health, and

1116
01:29:52,160 --> 01:29:58,640
opportunity could multiply
benefits across generations.

1117
01:29:59,040 --> 01:30:03,880
He encouraged readers to imagine
a world where compounding

1118
01:30:04,560 --> 01:30:09,720
applied to kindness and
knowledge as well as to dollars.

1119
01:30:10,720 --> 01:30:15,800
As he prepared to step back from
public life, he hoped that his

1120
01:30:15,800 --> 01:30:22,840
example of patience in investing
and generosity in giving would

1121
01:30:22,840 --> 01:30:28,320
continue to inspire others to
build and to share.

1122
01:30:28,680 --> 01:30:34,560
Looking back, Warren recognized
that his story had become part

1123
01:30:34,560 --> 01:30:42,000
of America's economic narrative.
He was dubbed the Oracle of

1124
01:30:42,000 --> 01:30:48,360
Omaha, a nickname he found
amusing but also humbling.

1125
01:30:48,840 --> 01:30:54,080
He often reminded people that
his success rested on the

1126
01:30:54,080 --> 01:30:59,440
foundation of a thriving
economy, a robust financial

1127
01:30:59,440 --> 01:31:04,840
system, and the rule of law.
He attributed much of his

1128
01:31:04,840 --> 01:31:10,080
fortune to being born at the
right time in the right place.

1129
01:31:11,160 --> 01:31:16,400
He urged young entrepreneurs to
appreciate the opportunities

1130
01:31:16,400 --> 01:31:21,640
available in a market economy
and to be mindful of the

1131
01:31:21,640 --> 01:31:25,400
responsibility that came with
success.

1132
01:31:25,760 --> 01:31:30,560
He remained optimistic about
America's future despite

1133
01:31:30,560 --> 01:31:32,960
political and economic
turbulence.

1134
01:31:33,760 --> 01:31:38,400
He pointed to the nation's
capacity for innovation, from

1135
01:31:38,440 --> 01:31:42,920
Silicon Valley startups to
breakthroughs in medicine and

1136
01:31:43,000 --> 01:31:46,760
energy.
He invested in companies that

1137
01:31:46,760 --> 01:31:52,400
reflected this optimism.
Berkshire's energy businesses

1138
01:31:52,880 --> 01:31:57,440
built wind farms across the
plains and solar arrays in the

1139
01:31:57,440 --> 01:32:01,920
desert, supplying clean power to
millions.

1140
01:32:02,320 --> 01:32:07,280
The railroad BNSF continued to
transport goods efficiently

1141
01:32:07,840 --> 01:32:11,120
reducing carbon emissions
compared to trucks.

1142
01:32:12,160 --> 01:32:18,480
In October 2025, Berkshire
announced plans to acquire

1143
01:32:18,480 --> 01:32:24,000
Oxychem, the chemical division
of Occidental Petroleum.

1144
01:32:24,400 --> 01:32:28,840
The deal promised to expand
Berkshire's industrial footprint

1145
01:32:29,400 --> 01:32:34,800
and to provide exposure to
products like PVC and chlor

1146
01:32:34,840 --> 01:32:39,880
alkali chemicals used in
construction and manufacturing.

1147
01:32:40,720 --> 01:32:44,680
The acquisition showed that even
in his final months as Cao,

1148
01:32:45,200 --> 01:32:50,120
Warren remained willing to make
bold moves in industries he

1149
01:32:50,120 --> 01:32:53,560
understood.
Over the years, Berkshire's

1150
01:32:53,560 --> 01:33:00,360
ownership of businesses like
See's Candies, GEICO, BNSF, and

1151
01:33:00,360 --> 01:33:05,680
Mid American Energy showed that
great companies could come from

1152
01:33:05,720 --> 01:33:09,600
any sector.
Warren valued industries with

1153
01:33:09,600 --> 01:33:13,360
strong barriers to entry and
consistent demand.

1154
01:33:13,760 --> 01:33:19,120
He avoided fads and stayed away
from businesses dependent on

1155
01:33:19,120 --> 01:33:24,160
government subsidies or
unpredictable commodity prices.

1156
01:33:25,080 --> 01:33:30,000
He favored companies with honest
managers who treated

1157
01:33:30,000 --> 01:33:34,720
shareholders like partners.
These preferences created a

1158
01:33:34,720 --> 01:33:40,520
mosaic of businesses that
collectively generated reliable

1159
01:33:40,520 --> 01:33:45,000
cash flows.
The steady returns allowed

1160
01:33:45,000 --> 01:33:50,400
Berkshire to weather recessions,
pandemics and energy crises.

1161
01:33:50,760 --> 01:33:54,760
Warren's legacy extended beyond
investing.

1162
01:33:55,280 --> 01:33:59,360
His folksy manner and plain
spoken wisdom made him a

1163
01:33:59,360 --> 01:34:03,400
cultural figure.
People quoted his sayings at

1164
01:34:03,400 --> 01:34:05,520
graduations and business
meetings.

1165
01:34:06,160 --> 01:34:09,880
Students read his letters to
learn about patience and

1166
01:34:09,880 --> 01:34:13,840
integrity.
Journalists sought his

1167
01:34:13,840 --> 01:34:19,640
commentary on economic events.
Yet he never sought celebrity.

1168
01:34:20,280 --> 01:34:24,640
He preferred to spend evenings
with family or at the bridge

1169
01:34:24,640 --> 01:34:28,320
table rather than attending
glamorous events.

1170
01:34:29,040 --> 01:34:35,840
His humility and consistency
made his advice more powerful.

1171
01:34:36,320 --> 01:34:41,440
He lived the values he espoused.
As he prepared to hand over the

1172
01:34:41,440 --> 01:34:46,080
reins to Greg Abel, Warren
reflected on the arc of his

1173
01:34:46,080 --> 01:34:49,760
career.
He had transformed A failing

1174
01:34:49,760 --> 01:34:54,800
textile mill into one of the
world's most valuable companies,

1175
01:34:55,320 --> 01:35:00,400
giving away 10s of billions of
dollars to charity, and remained

1176
01:35:00,400 --> 01:35:05,680
devoted to the city of Omaha.
He had done all of this while

1177
01:35:05,680 --> 01:35:10,320
living in the same house, eating
the same simple meals and

1178
01:35:10,320 --> 01:35:12,560
reading the same daily
newspapers.

1179
01:35:13,400 --> 01:35:19,400
His life stood as evidence that
wealth and fame need not change

1180
01:35:19,400 --> 01:35:23,320
a person score.
He hoped that future business

1181
01:35:23,320 --> 01:35:28,760
leaders would see Berkshire not
just as a profitable enterprise,

1182
01:35:29,400 --> 01:35:35,720
but as a testament to the power
of patience, rationality and

1183
01:35:35,720 --> 01:35:39,680
compassion.
Tonight, as our story winds

1184
01:35:39,680 --> 01:35:45,480
gently to a close, we think of
Warren Buffett's journey from

1185
01:35:45,480 --> 01:35:50,760
curious boy to thoughtful elder.
We have wandered with him

1186
01:35:50,760 --> 01:35:54,960
through dusty grocery aisles,
early morning paper routes,

1187
01:35:55,440 --> 01:36:00,800
quiet university libraries,
bustling trading floors, and the

1188
01:36:00,800 --> 01:36:04,960
soft hum of insurance officers.
We have listened to his

1189
01:36:04,960 --> 01:36:09,400
conversations with mentors and
friends, felt the weight of

1190
01:36:09,400 --> 01:36:14,320
decisions that shaped
industries, and marvelled at the

1191
01:36:14,320 --> 01:36:19,320
discipline that allowed him to
build wealth without losing

1192
01:36:19,320 --> 01:36:22,760
himself.
He showed that compounding

1193
01:36:22,760 --> 01:36:27,840
applies not only to money, but
to knowledge, kindness, and

1194
01:36:27,840 --> 01:36:31,800
trust.
By patiently stacking good

1195
01:36:31,800 --> 01:36:36,440
habits, fair dealings, and
thoughtful investments, he

1196
01:36:36,440 --> 01:36:41,480
constructed a life that
resonated far beyond balance

1197
01:36:41,480 --> 01:36:45,560
sheets.
Warren reminded us that success

1198
01:36:45,800 --> 01:36:50,240
is not a Sprint but a slow,
steady walk.

1199
01:36:51,080 --> 01:36:55,320
He taught that mistakes are
inevitable and that admitting

1200
01:36:55,320 --> 01:36:58,200
them early prevents greater
harm.

1201
01:36:59,080 --> 01:37:05,360
He encouraged us to read widely,
think independently, and measure

1202
01:37:05,360 --> 01:37:08,400
ourselves by our own inner
standards.

1203
01:37:08,760 --> 01:37:13,520
He urged us to be generous with
both resources and praise to

1204
01:37:13,520 --> 01:37:18,000
lift others as we climb.
He cautioned against envy and

1205
01:37:18,000 --> 01:37:23,320
short term thinking, knowing
that these emotions erode joy

1206
01:37:23,400 --> 01:37:28,200
and clarity.
He showed that a simple life can

1207
01:37:28,200 --> 01:37:34,000
be rich in meaning, that a quiet
routine can yield extraordinary

1208
01:37:34,000 --> 01:37:37,960
results.
As we lay down now, we let the

1209
01:37:37,960 --> 01:37:42,360
lesson settle.
We imagine the hum of a textile

1210
01:37:42,360 --> 01:37:47,520
mill fading into the quiet hum
of a desk lamp, the rustle of

1211
01:37:47,680 --> 01:37:52,400
annual reports giving way to the
rustle of leaves outside an

1212
01:37:52,400 --> 01:37:56,200
Omaha window.
We feel the steady beat of our

1213
01:37:56,200 --> 01:38:00,960
own hearts and recognize that
compounding applies there too.

1214
01:38:01,600 --> 01:38:07,400
Each beat builds upon the last.
Each breath sustains the next.

1215
01:38:08,320 --> 01:38:12,560
Just as Warren's patience
allowed small sums to grow into

1216
01:38:12,560 --> 01:38:17,880
billions, our own patience can
allow small acts of kindness and

1217
01:38:17,880 --> 01:38:21,560
curiosity to grow into lives of
purpose.

1218
01:38:22,040 --> 01:38:25,960
The world around us moves
quickly, filled with headlines

1219
01:38:25,960 --> 01:38:30,720
and notifications.
But Warren's story invites us to

1220
01:38:30,720 --> 01:38:35,120
slow down.
It invites us to seek clarity,

1221
01:38:35,640 --> 01:38:40,040
to value substance over
appearance, and to invest our

1222
01:38:40,040 --> 01:38:45,520
time and attention wisely.
It reminds us that we do not

1223
01:38:45,520 --> 01:38:50,080
need to chase every opportunity.
We need only choose carefully,

1224
01:38:50,240 --> 01:38:53,400
act decisively, and allow time
to work.

1225
01:38:54,240 --> 01:38:58,040
His life assures us that
generosity does not diminish

1226
01:38:58,040 --> 01:39:00,840
wealth, it amplifies its
meaning.

1227
01:39:01,680 --> 01:39:04,840
With these thoughts we drift
into stillness.

1228
01:39:05,400 --> 01:39:11,480
The night deepens, our minds
quiet, and we carry with us the

1229
01:39:11,480 --> 01:39:15,800
gentle wisdom of a life well
lived.

1230
01:39:16,840 --> 01:39:17,520
Good night.