The Shifting Sands: Berkshire’s Legacy

This year…a peculiar year, indeed. It marks the cessation of an era, the quiet retreat of the Oracle from the daily machinations of Berkshire Hathaway. For over half a century, Warren Buffett, alongside the late Mr. Munger, guided this behemoth, transforming it into a trillion-dollar entity. Now, a successor, Mr. Abel, assumes the mantle. One feels a certain…fragility in such transitions, a sense that the very soul of the enterprise is being tested. The market, of course, cares only for numbers, but numbers conceal a multitude of sins, and even more profound anxieties.

Change is inevitable, they say. A platitude, yet one that echoes with a dreadful truth. Even the most steadfast of holdings, the seemingly unshakeable Apple, finds itself subject to the currents of time and the whims of a new steward. One wonders if Mr. Abel truly comprehends the weight of his inheritance, the moral burden of managing such vast wealth. Does he see the faces behind the figures, the hopes and fears invested in each share?

The Apple’s Diminishing Bloom

For a decade, Apple has reigned supreme within Berkshire’s portfolio, a glittering monument to technological innovation. Buffett, a man of simple tastes, found a strange comfort in the consumer aspect of Apple’s operations. The loyalty of its customers, the willingness to pay a premium for polished metal and glass…it spoke to a deeper, more unsettling human need. A need for…belonging, perhaps? Or merely the illusion thereof?

The share buybacks, of course, were a clever maneuver, a way to artificially inflate earnings per share. A game of smoke and mirrors, played with billions of dollars. But even such a masterful illusion cannot mask the underlying truth: Apple, like all things, is subject to decay. The relentless pursuit of novelty, the constant demand for the next shiny object…it’s a fever dream, a collective madness.

Buffett, in his final years, began to subtly, almost imperceptibly, divest from Apple. A tax-advantaged maneuver, he claimed. But one suspects there was more to it than that. A growing unease, a premonition of decline? He saw, perhaps, that Apple’s valuation had become…untenable. A house of cards, built on the shifting sands of consumer desire.

The price-to-earnings ratio…a vulgar metric, yet a necessary one. Apple, once a bargain, had become…expensive. A victim of its own success. And Mr. Abel, a man of stern disposition, is unlikely to repeat his predecessor’s mistakes. He will demand a good deal, a fair price. And if Apple cannot provide it…well, the consequences could be…significant.

The Ascent of American Express: A Steadfast Companion

As Apple’s star begins to fade, another holding emerges from the shadows. American Express. A company built on…trust. On the promise of…security. It is a peculiar thing, this human need for credit, for the ability to purchase now and pay later. A form of…self-deception, perhaps? But a profitable one, nonetheless.

The numbers tell a story, of course. Apple, once six times larger than Amex, has seen its stake diminish. While Amex has quietly, steadily, grown. It is a tale of…prudence. Of…stability. Buffett, in his final letter to shareholders, identified Amex as an “indefinite” holding. A company he intended to hold…forever. A curious notion, isn’t it? To believe that any enterprise can truly endure the ravages of time.

Amex benefits from the resilience of the American economy. A strange, paradoxical beast, this American dream. It promises prosperity, yet delivers inequality. It fosters innovation, yet rewards greed. But it endures, nonetheless. And Amex, like a parasite, thrives on its host.

The ability to earn fees on both sides of the transaction…a clever trick. A way to extract value from every purchase. And the affluent clientele…they are less likely to default on their debts. They are, in a sense, the moral guardians of the system. Or perhaps merely the most adept at exploiting it.

The dividend…a paltry sum, in the grand scheme of things. But it provides a steady stream of income. A reassurance, in a world of uncertainty. And the cost basis…a mere $8.49 per share. A relic of a bygone era. Berkshire is doubling its initial investment in Amex solely from dividend income in less than three years. A remarkable feat. A testament to the power of…compounding. Or perhaps merely a sign of the times.

The market, of course, cares only for numbers. But behind those numbers lie…stories. Stories of ambition, greed, and despair. And as the sands shift, and the old order gives way to the new, one can only wonder…what will become of Berkshire Hathaway? Will it continue to thrive, or will it succumb to the same fate as all the other empires of the past? The answer, my friends, remains shrouded in…mystery.

2026-02-23 13:13

The Apple’s Diminishing Bloom

The Ascent of American Express: A Steadfast Companion

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