Overview
- Warren Buffett stepped down as Berkshire Hathaway’s CEO at the end of last year after decades of leadership.
- His guidance for 2026 centers on a strict pre-purchase test that confines stock picks to businesses an investor truly understands.
- Buffett long avoided fast-changing tech sectors, with Apple as a notable exception and a newly disclosed Alphabet stake added in the third quarter of last year.
- Berkshire’s holdings reflect this approach by concentrating on consumer brands, financial institutions, and energy companies viewed as easier to analyze.
- Applying the test requires humility about the limits of one’s knowledge and a deep grasp of products, markets, growth prospects, financials, and management performance.