BERKSHIRE OPERATING PHILOSOPHY
CAPABLE MANAGERS
↓
DECENTRALIZED OPERATIONS
↓
CENTRAL CAPITAL ALLOCATION
↓
FINANCIAL STRENGTH
↓
LONG-TERM OWNERSHIP
↓
INTRINSIC VALUE COMPOUNDING
BUILDING INTRINSIC VALUE
We evaluate businesses and capital decisions
through the lens of long-term economic reality
rather than short-term accounting earnings.
EARNINGS + ALLOCATION + QUALITY
↓
INTRINSIC VALUE
DURABLE BUSINESSES
Focusing on companies with durable economics,
capable management, and attractive long-term
prospects across
Insurance, Rail, Energy,
Manufacturing, and Retail.
THINK IN DECADES
Long-Term Ownership:
Focus on durable value
creation over many years.
Patient Capital:
Avoiding unnecessary short-term
actions to allow compounding to work its magic.
A CULTURE BUILT TO ENDURE
Entering a new chapter with Greg Abel as CEO
(Jan 1, 2026), the core philosophy remains:
continuity of culture, decentralized operations,
and disciplined stewardship.
Berkshire Hathaway Inc. | Shared Philosophy & Long-Term Direction | 2026 Reference Document
