Cryptonist Wan B

Warren Buffett is stepping down as CEO of Berkshire Hathaway by the end of 2025, and that’s not the big story.  The real problem is that the company he built is clearly lagging.

 The structure, the strategy, the way it moves — all of it feels frozen in time while the rest of the global finance world is changing to real-time crypto plays, high-frequency ETF flows, and tech-powered decisions.

 Warren confirmed his retirement two weeks ago at the annual meeting, and Omaha World-Herald reported he will no longer take the stage at future gatherings.  Instead, his successor, Greg Abel, will front the 2026 event on May 2.

 Warren, who started using Berkshire in 1965 to build his investment vehicle, has managed to grow the share price at 20% per year for 60 years.  That’s twice the S&P 500.  But the way he did it simply doesn’t work anymore.

 In the Financial Times, Terry Smith, CEO of Fundsmith, wrote, “I shall not look upon his like again,” after breaking down why no one will be able to repeat Warren’s record.

 Berkshire’s advantage was float and leverage, not just stock picks

 Terry said Warren’s real edge came from his understanding of float, the ability to invest other people’s money before it was needed.  The first time Warren saw this was with American Express.  Back when travelers used paper cheques, they’d buy more than they needed before a trip.

 That meant Amex had extra cash sitting idle — cash that could be invested.  He saw the same thing in Blue Chip Stamps, a company Berkshire took over.  Supermarkets had to buy loyalty stamps in advance before giving them to customers.  That money sat on the books as float.


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