Warren Buffett warned Berkshire Hathaway shareholders that the $905 billion company is unlikely to deliver dramatic growth in the near future. The chairman presented this view in his annual message to investors, explaining that few large U.S. firms remain that can meaningfully influence Berkshire’s results.
At 93 years old, Buffett suggested it would be challenging for his successors to replicate the track record built through landmark deals such as Geico, National Indemnity, and the BNSF railroad. He noted that opportunities outside the United States have become scarce for significant acquisitions, a point echoed by industry observers.
The challenge has intensified in recent years. Even after acquiring Alleghany and other assets, Berkshire’s cash reserves rose to about $168 billion. Competition for merger and acquisition deals has grown, leading to broader concerns that many potential targets carry inflated valuations.
Buffett also emphasized that Berkshire should maintain fiscal conservatism and strive for returns just above the overall market average. He warned against expecting the extraordinary profits seen in earlier years, given shifting market dynamics and limited large-scale opportunities.
Following the passing of Vice Chairman Charlie Munger in 2023, Berkshire began a formal generational transition. Greg Abel, Ted Weschler, and Todd Combs are positioned to guide the company after Buffett steps back, though repeating past success will not be easy in a more complex environment.
Buffett once described himself as the leader of Berkshire’s construction team, while acknowledging that Munger should be viewed as the chief architect. In the real world, great structures are associated with the designer, and those who physically build them are often forgotten over time.
Earlier discussions had hinted that Michael Burry, famously depicted in the film The Big Short, took an unexpected position related to Chinese equities, signaling that a shift in global bets could occur, even for a firm of Berkshire’s scale. Observers note that Buffett has at times invested in lesser-known companies, taking calculated risks where he sees long-term value. This pattern continues to define Berkshire’s cautious yet opportunistic approach.