As Warren Buffett retires, here’s his final piece of advice to investors.
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 âOracle of Omahaâ 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 âBuffett Indicatorâ reaching a staggering 230% versus its post-2000 average of 110%-130%, the US stock marketâs 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 â but not zero.”
Clearly, Buffett believes valuations are stretched. And with a track record of holding out for more attractive prices, it isnât 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 Berkshireâs recently been making.
2. Volatilityâs part of the journey
Even as a value investor, Buffettâs 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 Buffettâs 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 Hathawayâs 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.
The post As Warren Buffett retires, here’s his final piece of advice to investors. appeared first on The Motley Fool UK.
Should you invest £1,000 in Berkshire Hathaway right now?
When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Berkshire Hathaway made the list?
More reading
- Here’s my number 1 passive income stock for 2026
- How I’m aiming to outperform the S&P 500 with just 1 stock
Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
