Download the 06.06.25 Top 3 Lessons from Warren Buffett in 2025 for advisors’ use with clients

By Kostya Etus, CFA®

Chief Investment Officer, Dynamic Asset Management

“We will make our best deals when people are the most pessimistic. I was born in 1930. When I was born, things got much more attractive over the next two years and apparently, I didn’t do anything about it.”

– Warren Buffett, Berkshire Hathaway Annual Shareholder Meeting, May 3, 2025

Per tradition, I present my fourth annual summary of the Berkshire Hathaway Annual Shareholder Meeting, held in my hometown of Omaha, Nebraska.

As you may recall, last year was a very emotional meeting as Warren Buffett’s close friend and partner, Charlie Munger, passed away several months before the meeting. This year wasn’t short on tears as Warren, at 94 years young, announced he will be stepping down as CEO at the end of the year, and named Greg Abel as his preferred successor.

This is truly the end of an era, and a true investment legend taking a bow. We salute you.

Despite the sad news, and in typical fashion, Warren still spent a full day answering audience questions, telling stories and cracking jokes. Here are some of my key takeaways:

Turn Every Page

1. Hidden Key to Investing:
   “Turn every page.” Most people don’t. Before you even think about investing in a stock, read through all the financial statements. And then after you make the decision to invest, keep reading them. Warren reminds everyone that he still reads 50 to 60 financial statements each month. By understanding companies intimately, you get into the mindset of owning a piece of the company, not simply investing in stock certificates — this is a very important concept. After all, nobody knows what the market will do; investing is a treasure hunt. To find the treasure, you must look harder than everyone else.

2. Focus on Risk:
   Greg recalls one of the best pieces of advice he received from Warren: When investing, focus primarily on risk, not potential return. Focus on the detail in the financial statements, particularly the balance sheet, not just the income statement. The balance sheet is where the skeletons are buried, and a strong balance sheet also means never having to rely on anyone. Warren follows with something Charlie taught him: Don’t take a position in anything unless you can argue the case against it better than the opposition. This deep focus on understanding and managing risk is engrained in the culture and values of Berkshire — and will live on beyond the Oracle’s departure.

3. Market Pullbacks:
   The events of the last 100 days are nothing compared to what Warren has been through in his lifetime. Berkshire has fallen 50% three times over its history without anything fundamentally being wrong with the company — THOSE were big events, and great buying opportunities. If you care about positive or negative 15% moves in the stock market, then investing may not be for you. That’s just part of what the market is, and you need the right temperament to be a successful investor. Check your emotions at the door. Warren doesn’t get fearful. In fact, when markets are down 50%, he gets very excited, no other emotions are present.

Patience vs. Action

1. Patience:
   Opportunities don’t come along in an orderly way; you must wait and be patient for the right one. But that doesn’t mean sitting around doing nothing; being patient means being prepared. When waiting for an opportunity, use the time wisely to read and study to be ready to act in five seconds without any self-doubt.

2. Action:
   Acting fast and being patient are not opposite attributes for an investor. You can be patient when waiting for an opportunity. But when the opportunity comes, you can act very fast to take advantage. Keep in mind, you don’t need to be the first mover. Wait for things to crystalize and be ready to jump in when the opportunity presents itself. Warren references the current case with artificial intelligence (AI) as an example.

3. Change:
   Once you patiently wait for the right investment and act at the right time, it may seem like time to relax. After all, a great investment is one Warren recommends holding for 50 years (or forever). When you find that perfect investment, you don’t need to change anything, just sit back, cheer and clap. Unfortunately, no matter how good an investment may seem, or how much success you achieve, the mission is never done. Always be ready for change and have the ability to learn from mistakes, adapt and grow.

Life Lessons

1. Do Things You Like:
   Work with something you enjoy. Find a place with wonderful people and go there (people you work with and work for). You need to “find your sound.” It’s like finding someone in marriage. It may not be your first job or your second but keep at it. When you find the place with the right environment, don’t worry about the salary or benefits, make the most of it. One easy way to know when you found it is when you realize you don’t do it for the money.

2. Do Things with People You Like:
   You only get a few breaks in life in terms of the people you meet. When you find them, treasure them and hold on to them. Within business, it’s most important to find mentors and take advantage of the lessons they are able to bestow on you. A great mentor is someone who helps you become a better person and not only be successful in business, but also in life. But ultimately, finding key people to surround yourself with —people with mutual trust — is the most pleasant way to succeed. He jests that it may allow you to live longer.

3. Be Mindful of Risks:
   It’s important to take on the habits of successful people around you but be careful who you trust. You need to surround yourself with smart people who are humble and don’t take credit for things they didn’t do. Over time, you learn how to identify risks and be mindful of stupid people. He references a couple examples of investors who borrow to invest (leverage) or buy junk (highly speculative positions). The lesson is to not associate yourself with people or businesses that ask you to do something you’re not comfortable with. The greatest pleasure or achievement in business is having people trust you; don’t ever do anything to jeopardize that.

   

As we all know, Warren loves compounding and often references the iconic Albert Einstein quote, “Compound interest is the eighth wonder of the world.” He relates it to life in that the compounding of good intentions and good behavior can pay dividends for a lifetime.

And perhaps the best advice he gives is to focus on the good things in your life, to look to the bright side despite the setbacks. After all, if you hit a home run each time, life wouldn’t be very interesting, or fun.

It has been one of the greatest joys in my life to see Warren and Charlie speak, and although I am deeply saddened that we have reached the end of an era, I will cherish all those experiences forever.

Thank you, Warren, for everything.

Should you need help navigating client concerns, don’t hesitate to reach out to Dynamic’s Asset Management team at (877) 257-3840, ext. 4 or investmentmanagement@dynamicadvisorsolutions.com.

Disclosures

This commentary is provided for informational and educational purposes only. The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. This is not intended to be used as a general guide to investing, or as a source of any specific recommendation, and it makes no implied or expressed recommendations concerning the manner in which clients’ accounts should or would be handled, as appropriate strategies depend on the client’s specific objectives.

This commentary is not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation. Investors should not assume that investments in any security, asset class, sector, market, or strategy discussed herein will be profitable and no representations are made that clients will be able to achieve a certain level of performance, or avoid loss.

All investments carry a certain risk and there is no assurance that an investment will provide positive performance over any period of time. Information obtained from third party resources are believed to be reliable but not guaranteed as to its accuracy or reliability. These materials do not purport to contain all the relevant information that investors may wish to consider in making investment decisions and is not intended to be a substitute for exercising independent judgment. Any statements regarding future events constitute only subjective views or beliefs, are not guarantees or projections of performance, should not be relied on, are subject to change due to a variety of factors, including fluctuating market conditions, and involve inherent risks and uncertainties, both general and specific, many of which cannot be predicted or quantified and are beyond our control. Future results could differ materially and no assurance is given that these statements or assumptions are now or will prove to be accurate or complete in any way.

Past performance is not a guarantee or a reliable indicator of future results. Investing in the markets is subject to certain risks including market, interest rate, issuer, credit and inflation risk; investments may be worth more or less than the original cost when redeemed.

Investment advisory services are offered through Dynamic Advisor Solutions, LLC, dba Dynamic Wealth Advisors, an SEC registered investment advisor.