As the calendar rolls to January 2, 2026, the investing business marks a tragic milestone: Warren Buffett was officially the CEO of Berkshire Hathaway for the last time. Over the course of more than sixty years, this modest entrepreneur from Omaha, Nebraska, has built a small textile company into a gigantic conglomerate worth hundreds of billions of dollars.
He didn't utilize flashy trades or cutting-edge algorithms; instead, he relied on patience, common sense, and a deep understanding of how people work. Buffett is still the chairman, thus his power will last like a good investment. He is leaving his job as CEO and handing over the reins to Greg Abel, who has been with the company for a long period.
“Be afraid when others are greedy and greedy when others are afraid.
Many others, from Wall Street professionals to everyday citizens preparing for retirement, have been inspired by Buffett's narrative. His letters to shareholders every year are like tutorials in how to think clearly. What about the Berkshire annual meetings? They turned into a Woodstock for entrepreneurs, with thousands of people filling an arena only to hear him offer his insights and make them laugh.
Contrarian Investing: Be Fearful When Others Are Greedy
One of Buffett's most important commandments is "Be afraid when others are greedy and greedy when others are afraid." This isn't simply a philosophical theory; it's the way he made his money. Do you remember the 2008 financial crisis? While the markets were in a panic and stocks were going down, Buffett was buying stocks like Bank of America and Goldman Sachs for very low prices. He saw hope when other people saw no hope. Then he buys when the price goes down. It reminds us that emotions can move markets in the short term, but logic wins out in the long term. For normal investors, this means disregarding what TV news and social media say and focusing on what a firm really makes and owns.
This is why he told you to stay within your "circle of competence." Buffett says you shouldn't follow trends that aren't in your field of expertise. He has mostly kept away from computer stocks during his career because he didn't fully comprehend them. That changed when he bought Apple, which is now one of Berkshire's most valuable holdings. For what reason? He knows a lot about branding, how people act as consumers, and moats, which are the things that give a business an edge over its competitors. You can make this circle bigger by studying; it isn't set in stone. But if you don't do your research before going into hot industries like biotech or AI, you're sure to lose. If you don't know how to play poker, you're the one who loses.
Then there are his "golden rules," the first of which is "Don't ever lose money." Rule #2: Always keep Rule #1 in mind. Doesn't it sound easy? But it's quite profound. Buffett isn't saying you'll never have difficult years; he's had them too. The most important thing is to keep your money safe.
He buys assets that are so cheap that he won't lose too much money even if things go wrong. He bought American Express stock early on during the "salad oil scandal" of 1963, when the price dropped because people were worried about fraud.
Buffett looked deeper, discovered that the business was solid, and bought a lot. The stock shot up again, and it paid off big time. This approach shifts the focus from quick gains to avoiding losses over the long run.
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Ethics and Reputation: The Newspaper Test
Buffett has always put ethics at the center of how he sees the world. His experience at Salomon Brothers in the early 1990s is one of the clearest instances of this. Buffett became acting chairman after a crisis in the bond market that almost ruined the company. He told Congress about his "newspaper test": "After they first follow all the rules, I want employees to ask themselves if they are willing to have any planned action appear on the front page of their local paper the next day, where their spouses, children, and friends can read it, with an informed and critical reporter covering it." This isn't just business speak; it's a test of how honest you are.
He got rid of the people who were in charge of Salomon, overhauled the culture, and saved the company. He has done this test over and over again in Berkshire's code of conduct to show that it takes years to build a good reputation but only seconds to trash it. This advice is more relevant than ever because of all the business scandals that are happening right now, including the Enron hoax from back in the day and the FTX disaster.
It's not about breaking the law; it's about doing the right thing even when no one is watching. For leaders, this means making sure that ethics are not up for debate. And for people? Think about how you could utilize this in your daily life, such lying on a résumé or not doing your best at work. Would you like your family to read about it?
Seeing Through Booms: When the Tide Goes Out
Buffett is skilled at employing metaphors, and one of his greatest is, "When the tide goes out, you can see who is swimming naked." Picture a beach where everyone is having a great time when the tide is high. Everything looks okay. But when the water level drops, flaws become clear. This was in his letter to shareholders from 2001, which talked about the dot-com meltdown.
Companies that did well during boom times sometimes did so by borrowing money, gaining a lot of attention, or employing models that weren't very reliable. The weak ones come apart during a recession, as the one in 2008 or the COVID-19 drop. Buffett uses this to put businesses through a lot of stress tests when they are under a lot of stress.
At Berkshire, he loves companies with strong balance sheets, especially those that earn money without a lot of debt. Think of See's Candies or Coca-Cola. These businesses are simple, long-lasting, and able to get through challenging times. It's a general warning not to become too comfy. Bad habits are hidden by good times, but terrible circumstances reflect who you truly are.
The Power of Association and Optimism
Buffett is skilled at employing metaphors, and one of his greatest is, "When the tide goes out, you can see who is swimming naked." Picture a beach where everyone is having a great time when the tide is high. Everything looks okay. But when the water level drops, flaws become clear. This was in his letter to shareholders from 2001, which talked about the dot-com meltdown.
Companies that did well during boom times sometimes did so by borrowing money, gaining a lot of attention, or employing models that weren't very reliable. The weak ones come apart during a recession, as the one in 2008 or the COVID-19 drop. Buffett uses this to put businesses through a lot of stress tests when they are under a lot of stress.
At Berkshire, he loves companies with strong balance sheets, especially those that earn money without a lot of debt. Think of See's Candies or Coca-Cola. These businesses are simple, long-lasting, and able to get through challenging times. It's a general warning not to become too comfy. Bad habits are hidden by good times, but terrible circumstances reflect who you truly are.
A Lasting Legacy Beyond Wealth
Buffett's legacy isn't simply the money he made; it's also the smart things he said that had nothing to do with investing. For years, they've helped individuals make choices about money, values, and their own lives.
Buffett's voice will be heard in those letters and meetings every year, even though Greg Abel inherits a powerful company. Discipline, honesty, and hope are the keys to success.
In a world that changes swiftly, these norms seem more necessary than ever. Whether you're an experienced trader or just starting out, channeling a little bit of Buffett might make a big difference. He can add that the best thing to invest in is yourself and advise that will always be valuable.
Benjamin Hayes
Business Journalist
Benjamin Hayes is a seasoned business journalist with a special focus on corporate finance, global markets, and entrepreneurial trends. He has covered major startups, tech investments, and economic shifts in multiple sectors.
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