To all shareholders of Berkshire Hathaway:

Warren Buffett stands as arguably the greatest investor in history, with generations benefiting from his investment wisdom. He is also an exceptional Chief Executive Officer who, since acquiring National Indemnity Company in 1967, has consistently pursued his vision of building a premier insurance operation and successfully deployed insurance float to make investments across major core American industries. (Although Warren himself would be displeased with the letter opening on such a note, we all know it to be true.)

In the past, Buffett has often referenced the inspiration he drew from Baseball Hall of Famer Ted Williams. Ted divided the strike zone into 77 cells, choosing to swing only at pitches in a very small "sweet spot," which ultimately led to a career batting average of .344 and an epic single-season average of .406 in 1941. Buffett's investing embodies the same discipline, patience, and judgment: identify the ideal opportunity, wait patiently for the right moment, and then act decisively.

Yet he is far more than just a master investor. Together with his business partner, Charlie Munger, Buffett built Berkshire Hathaway into an enduring enterprise. They combined world-class capital allocation abilities with foresight and leadership, enabling the company to transition smoothly from being founder-driven to possessing the capacity for sustained development over the next 60 years and beyond.

Even more valuable than these achievements is that for six decades, Berkshire has consistently treated its shareholders as true partners. Buffett has frequently expressed his respect and gratitude for Berkshire's long-term investors, who rank among the finest owner groups of any public company. He invests alongside us, candidly documents every success and mistake, and invites us to Omaha each year for open, straightforward dialogue. His annual letters to shareholders and his direct interactions at the Berkshire annual meetings most clearly reflect the commitment of Buffett—and Berkshire—to walking side-by-side with shareholders.

We are fortunate that Buffett continues to serve as Chairman of Berkshire, working five days a week to provide guidance on insurance underwriting, the operations of non-insurance businesses, and capital allocation, including equity investments. Warren remains an owner of Berkshire (although his holdings will be dedicated entirely to philanthropy over approximately the ten years following his death).

For a long time, investing in Berkshire has meant placing a vote of confidence in our founders—a trust that is now entrusted to the entirety of Berkshire. Your capital is pooled with ours, but it always remains yours. Our duty is one of fiduciary responsibility. This duty has shaped Berkshire's corporate culture and solidified a set of core values. These values are not the outcome of success; they are the very reason for our success.

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I am honored that the Board has decided to appoint me as Chief Executive Officer of Berkshire, and I write my first letter to shareholders with humility, succeeding Warren. Buffett is clearly an exceedingly difficult benchmark to surpass.

Assuming any leadership role begins with understanding the institution—why it exists, how its culture shapes its people, and which values guide its decisions. You will see that I share similarities with, as well as differences from, Warren and Charlie, but we share a fundamental belief: Berkshire is, to a very great extent, shareholder-centric.

My own understanding of Berkshire began in 1992 when I moved to Omaha and joined CalEnergy, before it was part of Berkshire. CalEnergy was partly owned by Peter Kiewit Sons' and chaired by Walter Scott, Jr., who was also a director of Berkshire. Walter, who had succeeded Peter Kiewit as CEO, exemplified a leadership style that profoundly influenced me.

The specifics of my role at CalEnergy are unimportant now. What matters is that those years were an immensely valuable period of personal growth. I am grateful to have lived in Omaha—a city representing a form of capitalism grounded in fundamentals and driven by values, rooted in long-term endeavors across insurance, construction, railroads, manufacturing, and soon, energy.

After CalEnergy was renamed MidAmerican Energy Holdings and acquired by Berkshire, I came to know Warren and Charlie. I deeply admire the way they built a company that reflects their beliefs about business and life. These beliefs gave rise to Berkshire's culture and values, which continue to guide the company today, enabling it to navigate market cycles, industry disruptions, and generational change. Our enduring stability stems from knowing who we are and how we choose to operate.

Our deep appreciation for the role of culture and values in success is shared by our unique shareholders—the partners in the enterprise. Through interactions at our annual meetings, I know you want us to succeed together, and to do so in the right way.

Berkshire's culture and values form the bedrock of our operating framework, guiding the strategies we pursue and the choices we make as we develop Berkshire. As CEO, this framework dictates my daily approach to leadership.

The perspective of a business owner extends beyond the tenure of any single CEO. Realistically, I cannot expect to be your CEO for the next 60 years—that would be an overly ambitious goal. However, two decades from now, even if my tenure is only a fraction of Warren's, my objective is for you—or your successors—to feel proud that your company has grown stronger.