Image source: The Motley Fool
After a lifetime of building wealth in the stock market, on 31 December, billionaire investor Warren Buffett officially stepped down as CEO of Berkshire Hathaway (NYSE:BRK.B). But prior to his journey into retirement, the ‘Oracle of Omaha’ gave some final words of advice for investors.
As we start 2026, here are some of his thoughts.
1. Be patient. Don’t chase enthusiasm
With the ‘Buffett Indicator’ reaching a staggering 230% versus its post-2000 average of 110%-130%, the US stock market’s among one of the most richly valued in the world right now. And as a result, the billionaire has suggested investors become far more disciplined and selective with their choices.
“Because of market levels, ideas are few – but not zero.”
Clearly, Buffett believes valuations are stretched. And with a track record of holding out for more attractive prices, it isn’t surprising to see him take a more cautious stance in the current market environment. In fact, looking at Berkshire’s balance sheet, Buffett and his team have accumulated over $380bn of cash & equivalents.
Yet, as he highlighted, there are still opportunities to be had. And throughout 2025, even though Berkshire was a net seller of US stocks, the company was still deploying capital in niche opportunities.
This included health insurance (UnitedHealth), residential housing (Lennar and D.R Horton), American steel (Nucor) and, quite unusually, AI cloud computing (Alphabet). And these aren’t the only investments Berkshire’s recently been making.
2. Volatility’s part of the journey
Even as a value investor, Buffett’s encountered and endured multiple periods of widespread market volatility. In fact, over the last 60 years, Berkshire Hathaway’s share price has collapsed more than 50% on three separate occasions. And Buffett’s warned this will eventually happen again.
“Our stock price will move capriciously, occasionally falling 50% or so as has happened three times in 60 years under present management.”
However, he also reiterated that this is just a normal part of the investing journey:
“Don’t despair; America will come back and so will Berkshire shares.”
Some of Buffett’s biggest investing success stories are those made during times of crisis. A perfect example is Coca-Cola – one of Berkshire’s most profitable investments. Buffett started snapping up shares in 1988 shortly after the 1987 stock market crash, profiting from widespread volatility instead of panicking about it.
Is Berkshire still a good investment?
With the mantle of leadership being passed along to Greg Abel, Berkshire Hathaway’s transitioning into a post-Buffett era. But that doesn’t mean its shares are less attractive.
Abel has already demonstrated his strong understanding of capital discipline and long-term thinking throughout his journey of building Berkshire Hathaway Energy. And with a fortress balance sheet flooded with cash, he has plenty of financial flexibility to execute his vision.
Of course, steering Berkshire won’t be an easy task. The sheer size of the business makes future grow far more challenging. And since he’s not viewed as an icon in the same way Buffett is, investors and shareholders may hold him on a much shorter leash.
Nevertheless, much like Buffett’s timeless wisdom, I think Berkshire Hathaway shares are still worth considering in 2026, especially for investors who are unsure about how to navigate a complex market environment.
