On 28 February 2026, Greg Abel published his first annual letter as CEO of Berkshire Hathaway.

What struck me reading it is not what has changed — but what hasn’t.

After 25 years working across fund management and advisory roles, I have learned that consistency at the highest level is not the absence of ambition. It is the result of it.

Here are the principles that stood out.

Stewardship, Not Ownership

“Your capital is commingled with ours, but it does not belong to us. Our role is stewardship.”

That is not a marketing line. It is a governing philosophy.

When leaders forget they are stewards, capital gets misallocated — deployed for activity’s sake, driven by ego, shaped by narrative. In easier markets, that behaviour can be masked. In uncertain ones, it is exposed.

The continuity from Buffett to Abel is not stylistic. It is structural. And that continuity may be one of Berkshire’s greatest assets.

Cash Is Strategic Flexibility

Berkshire ended 2025 with over $370 billion in cash and U.S. Treasuries. Some call that caution. I call it optionality.

In geopolitical uncertainty, liquidity is not dead capital — it is strategic flexibility. It is the ability to move when others cannot. To buy when others are forced sellers. To absorb shocks without dilution or distraction.

Financial strength is not a by-product of Berkshire’s success. It is a deliberate choice that underpins everything else.

Decentralisation as Risk Architecture

Capital today operates in a world shaped by trade fragmentation, AI infrastructure races, energy transition politics and regulatory divergence.

Shocks are uneven. Energy policy hits utilities differently from rail. Insurance cycles turn independently of consumer demand. Regulation is increasingly regional.

Berkshire’s decentralised model — autonomy with accountability, decisions made close to reality — is built for exactly this kind of complexity.

It is not simply organisational preference. It is risk architecture.

Discipline Over Volume

In 2025, Berkshire wrote less insurance where pricing softened. No announcement. No narrative management. Just restraint.

The criteria remain unchanged:

• Businesses understood deeply
• Durable competitive advantages
• High-integrity leadership
• Concentrated conviction

And critically — walk away when the price is wrong.

In uncertain markets, the quality of what you decline is as important as what you pursue.

Downside First, Compounding Second

The quietest idea in the letter is also the most important:

Long-term per-share improvement — with a constant focus on managing downside risk.

That ordering is everything.

Protect capital first.

Avoid permanent impairment.

Then let compounding do the work.

Across cycles, the biggest wealth destroyers are not volatility events. They are structural errors made under pressure — overpaying, over-levering, overreaching.

Berkshire’s framework is built to avoid those errors.

Why It Matters Now

The global backdrop is more complex than it was a decade ago.

Capital allocation is now influenced by geopolitical realignment, supply-chain reordering, technological sovereignty and regulatory asymmetry. The margin for error is narrower. The consequences of fragility are sharper.

And yet, the principles that built one of the greatest long-term records in capital allocation history remain unchanged:

• Stewardship.
• Financial strength.
• Decentralisation.
• Discipline.

Long-term intrinsic value per share.

Sustained excellence is rarely dramatic. It is deliberate, disciplined and often quiet.

That is what this letter reinforces.

And in uncertain times, it is worth studying.

Have a great week!