After Buffett: Greg Abel’s Berkshire test, says R360’s Barbara Goodstein

? (?) 00:00.000

All right, I was looking at the chart. You look at this chart, Berkshire has gained about 6 million percent since Warren Buffett took over. Just an astronomical move higher just for context, the S&P's up about 46,000%. So incredible gains. Does this company Does it lose

? (?) 00:14.760

something without the aura of Warren Buffett in charge? Even though he's still the executive chairman, does the stocks attractiveness change for you, your members, and just how you're looking at it?

Barbara Goodstein (Managing Partner) 00:23.880

No, the attractiveness doesn't change. We are strong into Berkshire Hathaway the way we've always respected their moves and there's a lot of opportunity here now. We're calling this a succession discount. So we think that stock is trading below what it will become because

Barbara Goodstein (Managing Partner) 00:38.080

everybody's waiting to see how Greg Abbott performs. And there will be a number of checkpoints along the way, but this is basically what our members do. They plan for succession. So they're entrepreneurs who hand over their businesses just like what Warren Buffett's doing. So

Barbara Goodstein (Managing Partner) 00:52.800

we're watching this with great excitement because we think it's going to be a big opportunity. All

? (?) 00:57.640

right. So you're seeing an opportunity. There's an opportunity that you're looking at in particular, the cash pile they have, $382 billion. But you're this is one of the benchmarks I think you're talking about. You want to see him make some investments, but you want to see the

? (?) 01:08.640

return over the risk-free rate of about 4% or so. So, what areas would you like to see invest? Where do you see the potential to get that that gain above the risk-free rate?

Barbara Goodstein (Managing Partner) 01:17.760

Well, there's an opportunity on railroads and we've talked about that before. We think he might be able to create a conglomerate on the railroad side, but it's more watching Greg Abel's moves. Is Greg Abel going to invest significantly in his own business. That's the sign of a

Barbara Goodstein (Managing Partner) 01:32.440

true entrepreneur. That's what our members are constantly doing. They invest in themselves. They invest in the businesses they know. So, we're going to look for a number of different checkpoints and yes, he's going to have He's got a lot of cash on hand now. They've been sitting

Barbara Goodstein (Managing Partner) 01:44.840

on it for a while and we think they're sitting on it so he can make a big move in 2026. All right.

? (?) 01:49.160

Possibly in the energy space. I know his his histories in the energy space. Do you think of moving the energy space as top priority? Is it transportation? Is it insurance? I mean, if you had to kind of use your crystal ball, which I know you're don't really have. Uh, but if you

? (?) 02:01.360

had to use your crystal ball, where do you see that first move coming?

Barbara Goodstein (Managing Partner) 02:03.960

Well, possibly energy or industrials. They're also big into defense and we think energy and defense are two sectors that are going to play very well over the next over the next year or two. So, Berkshire Hathaway is well positioned. They've always been looking at the trends and

Barbara Goodstein (Managing Partner) 02:18.400

we think that those are the two sectors that have lots of upside.

? (?) 02:21.720

Uh, one story that we're following this morning is SoftBank buying a basically a PE firm for for data centers and things like that. Warren Buffett is famous for saying he doesn't really invest in things things that he doesn't understand. Do you think Greg Abel has a different

? (?) 02:32.960

understanding of investments, tech, and things like that? Will that change some of the investments of this company?

Barbara Goodstein (Managing Partner) 02:38.040

Well, he is an operator and we've known that for a while. And I think Warren Buffett has a very well thought out succession plan. And as I said, that's what we are very focused on doing. Succession for entrepreneurs is a practice of ours. And I think that Warren Buffett knows

Barbara Goodstein (Managing Partner) 02:52.960

that Greg Abel has the background and the operating skills to make a good selection. So, whether it So, here's an asset class that I don't think has really any exposure to Bitcoin. You and I were actually talking,

? (?) 03:04.600

your members are really bullish on Bitcoin. Scarcity, they're they're seeing this as a viable dip. Would you like to see Berkshire Hathaway dip its toes in some things that are well outside the box of it historically like a Bitcoin or Ethereum? Well, that would be particularly

? (?) 03:17.520

interesting because Warren Buffett has not been interested in Bitcoin. So, this

Barbara Goodstein (Managing Partner) 03:21.120

might be another breakout move for Greg Abel. But yes, we are very bullish on Bitcoin we think based on the scarcity of Bitcoin and also the fact that ultimately digital currency has got to succeed just like direct response was ultimately going to overtake snail mail. So we

Barbara Goodstein (Managing Partner) 03:44.680

think that ultimately Bitcoin is going to be a digital asset is going to be successful. So this might be Greg Abel's opportunity to prove himself. What

? (?) 03:53.880

about Japan? Lot of news about Berkshire Hathaway in Japan over the last couple years. Do you expect Greg Abel to also look at the international markets. We've been doing a lot of stories about international outperforming the US markets, even though the US is having a fantastic

? (?) 04:05.640

year, potentially on pace for its first back to back to back 20% gain since the dot com error.

Barbara Goodstein (Managing Partner) 04:11.120

Uh I think of course he's going to look at international. Warren Buffett found little slices in Japan and that was a nice percent of his portfolio because he was very successful in his picks. But of course Greg Gable's going to look at the whole world. He's got an enormous

Barbara Goodstein (Managing Partner) 04:24.640

opportunity and a giant cash fund sitting at his feet. So he's got a lot of opportunity to make some big moves and that's what we're going to be watching for. Okay. Your

? (?) 04:33.160

group, ultra high net worth individuals. I think all of us we we want to invest like those kind of people and kind of have the same inside as they are. How are they looking at this stock going forward? Um what are the benchmarks to buy more potentially? What are the benchmarks

? (?) 04:45.400

to say I'm not sure Greg Abel's working out? One of the things you said is a strategic allocation over the next year or 18 months or so. Um how important is that? Like what's the thing that's going to say, "Hey, this is working or this is not working?"