Warren Buffett Took the Long View

Warren Buffett’s legendary investment philosophy has always centered on patience, discipline, and a relentless focus on long-term value. In 2024–2025, these principles shone through as Berkshire Hathaway deployed capital strategically, weathered macroeconomic storms, and positioned itself for decades of growth. From Japan’s trading giants to U.S. energy stocks, Buffett’s moves reflect a strategy that prioritizes stability over short-term gains—a theme underscored by his record-breaking cash reserves and subsidiary successes.

The Japan Gambit: A Decade-Long Play

Buffett’s $20 billion bet on Japan’s five major trading companies—Mitsubishi, Sumitomo, Itochu, Marubeni, and Toyota Tsusho—is one of the most significant moves of his career. These investments, acquired over years, are framed as “super long-term holdings,” with no plans to sell for decades. The rationale? Japan’s consumer markets remain robust for Berkshire’s global brands like Coca-Cola and Apple, while its trading firms offer access to Asia’s supply chains.

Crucially, Berkshire secured regulatory approval to exceed Japan’s 10% ownership limit, signaling intent to deepen ties. Buffett’s confidence is backed by results: as of late 2024, these stakes were already profitable, and he emphasized that Berkshire’s $334 billion cash pile could fund even larger investments if opportunities arise.

Subsidiaries: The Engine of Resilience

Berkshire’s subsidiaries—often overlooked in favor of its stock portfolio—delivered record-breaking performance in 2024.
- See’s Candies: Set a sales record of $317,000 on the day of the 2025 shareholder meeting, up 12% from 2023.
- Brooks Running: Achieved an all-time sales high of $310,000, fueled by a cult following for its minimalist sneakers.
- Jazwares: Doubled sales to $250,000, driven by demand for pop-culture merchandise.

These results highlight Buffett’s belief in “moats” built through brand loyalty and operational excellence. The subsidiaries’ cash flow, combined with Berkshire’s insurance underwriting profits, underpins its ability to weather market volatility.

Beyond Japan: New Frontiers in Energy and Tech

While Japan remains a cornerstone, 2025 saw Buffett expand into sectors critical to the 21st-century economy:
1. Energy Dominance:
- Occidental Petroleum: Berkshire raised its stake to 28%, now worth over $12 billion. This follows a $35.7 million February 2025 purchase, reflecting Buffett’s bet on oil’s enduring role in global energy.
- BYD (China): Despite geopolitical risks, Berkshire held onto its 54-million-share stake, valued at $2.7 billion. BYD’s 49% year-to-date gain in 2025 underscores its leadership in electric vehicles.

1. Tech and Beverages:
2. Apple: A $600 million addition to Berkshire’s existing $120 billion stake reaffirmed its trust in tech giants.

3. Constellation Brands: A $1.2 billion bet on the alcoholic beverage giant signals a shift toward consumer discretionary sectors.

4. Defensive Plays:

5. A $50 million investment in a U.S. media conglomerate and a $200 million railroad logistics venture highlight Buffett’s focus on stabilizing declining industries.

The Risks and the Reward

No strategy is without risk. Berkshire’s Q1 2025 results revealed vulnerabilities:
- Insurance Headwinds: A $1.1 billion loss from California wildfires and a 48.6% drop in underwriting profits to $1.34 billion.
- Trade Policy Uncertainty: Buffett’s criticism of U.S. tariffs as an “economic war” underscores concerns about supply chains and global stability.

Yet, the cash reserves—now $347 billion—act as a bulwark. Buffett’s mantra of waiting for “fat pitches” ensures Berkshire can capitalize when markets falter.

Leadership Transition: The Next Chapter

Buffett’s confidence in successors Greg Abel and Ajit Jain is clear. The cash hoard, he says, offers Abel a “clean slate” to deploy capital. The 60th anniversary book project, which raised $148,000 for charity, symbolizes Berkshire’s enduring culture of stewardship—a culture Abel and Jain must preserve.

Conclusion: The Long View Pays Off

Warren Buffett’s 2024–2025 strategy is a masterclass in disciplined, long-term investing. With record operating earnings ($47.4 billion), a cash pile unmatched in corporate history, and subsidiaries hitting all-time highs, the results speak for themselves.

Critics may question Buffett’s reluctance to act in volatile markets, but the data supports patience. The Japan investments, energy bets, and subsidiary resilience collectively position Berkshire to thrive through cycles. As Buffett quipped at the 2025 shareholder meeting: “The value of Berkshire isn’t in its stock price today—it’s in the compounding of value over 50 years.” For investors, the lesson is clear: follow the long view.

Data as of Q1 2025. Past performance does not guarantee future results.