To The Moon

Buffett stepping down is undoubtedly the end of an era, but it doesn't automatically weaken my confidence in Berkshire Hathaway as a defensive stock. What Buffett built over six decades is not just a portfolio of businesses, but a deeply embedded culture of capital discipline, long-term thinking, and risk control. In my view, that culture matters far more than any single individual, even someone as legendary as Buffett.

I do have confidence in his successor, largely because this transition has been planned for years, not rushed at the last minute. The operating businesses are already run independently by strong managers, and capital allocation has long been a shared process with clear principles. Berkshire today is less about stock picking genius and more about a system that prioritizes cash flow, balance sheet strength, and patience.

As a defensive stock, Berkshire $Berkshire Hathaway(BRK.A)$  $Berkshire Hathaway(BRK.B)$  still stands out to me. It holds massive cash reserves, owns businesses with pricing power, and has minimal reliance on external financing. In uncertain markets, that flexibility is a huge advantage. Even without Buffett at the helm, Berkshire's diversified earnings and conservative financial structure make it one of the few names I'd still be comfortable holding through a full market cycle.

The comparison to Apple $Apple(AAPL)$  under Tim Cook is actually quite relevant in my eyes. Cook didn't replace Steve Jobs' creativity; he scaled Apple's execution, supply chain, and capital returns. Similarly, Berkshire's next phase may be less about legendary deals and more about efficiency, disciplined deployment of capital, and steady compounding. That doesn't sound exciting, but defensively, it can be very powerful.

Overall, I don't expect Berkshire to outperform aggressively in a bull market, but I do believe it can continue to compound value quietly after Buffett steps down. For me, that's exactly what a defensive stock should do—protect capital, reduce downside risk, and still deliver respectable long-term returns, even as leadership changes.

As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community. 

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