Omaha, Nebraska is the site of Warren Buffett’s Berkshire Hathaway annual shareholder meeting, which takes place in May. It was a watershed moment in Buffett’s illustrious 60-year investment career, and the conference this year was also his final as CEO. The nearly 7-hour meeting was jam-packed with highlights, as expected, covering corporate strategy adjustments, record cash reserves, deep insights on AI and global trade, fiscal deficits, Apple, and long-term holdings logic. Buffett, demonstrating his consistent investment wisdom and long-term perspective, remained unwavering in his belief in emotional management and free markets.

Very few North American high-net-worth families have expertise trading on a long-term basis. Berkshire is a prime example of this sort of company because of its decision to invest in a small number of enterprise-type assets that have the ability to outlast economic cycles. Knowing Berkshire and sharing in its profits is more about changing one’s perspective on wealth and investing for the rest of one’s life for mainland Chinese investors than it is about learning about a stock.

1.Berkshire is not a “stock” or a “product,” but rather a sustainable, controllable platform for enterprise capital.

Institutionally planned returns support structured wealth management products, bank-distributed trusts, and fixed-income products, which are commonplace among Chinese investors. With a wide range of interests, including railways, utilities, manufacturing, insurance, and large holdings of high-quality US stocks, Berkshire is essentially a holding corporation. The platform is more akin to an operational asset portfolio.

Capital allocation at Berkshire Hathaway is overseen by Buffett and his staff over the long term, with an emphasis on stability, conservatism, “margin of safety,” and “cash generation capability.” This is in contrast to standard forms of fund or ETF delegation management. So, instead of putting your money into the market, you’re putting it into a methodical, profit-driven asset portfolio.

By acquiring BNSF Railway in 2010, one of the biggest freight railways in North America, Berkshire has been able to diversify its revenue streams away from reliance on the market and into transportation services, generating around $6 billion in consistent operating profits yearly for investors and the business. Long-term, low-cost “float” for future investment opportunities is provided by GEICO Insurance, one of the top five auto insurance firms in the US, to Berkshire. This is an internal mechanism for the circulation of company cash, as opposed to general wealth management.

2. Corporate Profits and Capital Reinvestment Drive It, Not Market Sentiment or Valuations

High valuation repricing and “future earnings imagination” are not the keys to Berkshire’s success. Rather, it derives more than 90% of its net assets from steady cash flows and operational earnings from top-notch businesses.

This is why, when the economy is weak, it usually has better defensive qualities. For instance, in 2025, when Trump instituted new tariff war tactics, the US stock market was extremely volatile. Despite this, Berkshire kept its net asset value unchanged and even grew its long-term holdings in energy, consumer staples, and financials.

The attractiveness of this investment strategy stems from its foundational asset structures, which are stress resistant and have compounding potential. It is also stable and not dependent on short-term thematic investing.

3. Past Results Show That It Has Outperformed The Majority of Market Tools and Asset Classes Over the Long Run.

The long-term returns for Berkshire are very attractive, according to the numbers:

Berkshire Class B shares, which are cheaper and have less voting rights, had an annualized compound return of almost 13.1% between 1994 and 2024, whereas the overall return of the S&P 500 was roughly 10.3% during the same time. If one were to invest $100,000 CAD at the outset, in 30 years, the amount would be $1.36M, while it would be $0.92M.

Its maximum drawdowns were substantially smaller than tech growth assets, and its average yearly volatility was much lower than the market average. Given its unique combination of “excess returns” and “risk mitigation capabilities,” Berkshire is an ideal core holding for the portfolios of ultra-wealthy individuals.

Function in Asset Allocation: A Foundation for Compounding, a Bridge to Liquidity, and an Inflation Hedge

Berkshire has treble the value of a traditional financial product’s portfolio:

The Compounding Foundation is able to provide more stable net worth growth over the long run since its wholly-owned businesses produce a large amount of free cash flow every year. The record-breaking $367.7 billion in free cash flow this year is sitting on the sidelines, ready to be invested in the market.

For high-net-worth clients looking to swiftly reallocate assets across several currencies and accounts, Berkshire Class B shares are a viable liquidity bridge because they trade daily on US markets and have flexible holding methods, unlike domestic structured products or PE/VC lock-up periods.

As a natural hedge against currency depreciation, substantial businesses related to real assets and consumer endpoints provide inflation protection.

Investors in high-tax regions (like Canada) who have their money in non-registered or corporate accounts might benefit from the company’s lack of dividend payments and its growth through capital reinvestment rollover.

In summary

A large portion of the investing community is stuck in the old “product thinking” mentality, where they only consider returns, cycles, and redemption strategies. In developed markets, however, asset allocation is more about managing the quality, predictability, commitment to compounding, and “risk stickiness” of a family’s assets as a whole.

Berkshire is special because it is an all-encompassing asset platform that does not get caught up in the ups and downs of the economy, unlike traditional tech growth stocks or value defensive stocks. It may supplement the active capital growth logic that ETFs, defensive cash, and overseas real estate cannot accomplish, making it an essential holding in a “core-satellite strategy” for families aiming to develop solid wealth structures.