🧓 Warren Buffett Steps Down as CEO of Berkshire Hathaway

• Buffett officially steps aside as CEO at age 94, replaced by Greg Abel.
• Still remains Chairman
• Berkshire A shares up ~44,000% since the 80s
• No dividends ever paid, only share buybacks
• His legacy: simplicity, repeatable process, and long-term vision
• Emphasis on reading years of balance sheets and loving cash flow
• Fun fact: 96% of his net worth came after age 65

🏦 Investing Lessons from Buffett * Stick to quality companies at reasonable prices * Focus on permanent capital and compounding * Keep your process simple and repeatable * Don’t chase hype — focus on fundamentals * South Africa's Chris Seabrooke noted as a local Buffett-like investor

🌸 "Sell in May and Go Away" – Myth Busted * Simon critiques the old market adage. * S&P returns from May–October average 0.49%, Nov–Apr average 1.02% * Transaction costs, taxes, and missed rallies make timing unreliable * Verdict: It's a nursery rhyme, not an investment strategy

🛢️ Oil Falling as OPEC Hikes Production * OPEC+ accelerating production increases * Brent now ~$60/barrel

Impacts: * ✅ Good for fuel prices & oil consumers * ❌ Bad for Sasol (though price hasn’t reacted much) * 🏚️ Fracking rigs in US may shut down if prices fall further * Possible geopolitical angle: helping Trump by lowering gas prices

💵 Rand Strengthens * ZAR at R18.24/USD, nearing a key R18.30 technical level * Boosted by stronger exports, higher gold prices * Could trend toward R17 if momentum continues

🪙 Gold Surging Again * Gold bouncing back above $3,000 after recent dip * Driven by: + Central bank buying + Rebound in ETF inflows (especially in Europe, Asia, and US) + General inflation and recession fears + Upcoming FOMC decision adding fuel to the rally

🏛️ FOMC Decision This Week * Fed expected to hold rates * US inflation stickiness, strong jobs data, and political independence from Trump all in play * Simon expects no change but criticizes SARB for being too hawkish despite low SA inflation (2.7%)

🧠 Palantir Results – Big Numbers, Big Risks * Q1 Revenue up 39% YoY to $884M * Customers up 39%, EPS (non-GAAP) at $0.13 * Price-to-book: 58x ⚠️ * EV-to-sales: 100x ⚠️ * Heavy stock-based comp = shareholder dilution * Analysts split: mostly neutral or bearish * You’re investing in Peter Thiel’s vision, not value metrics

Simon Brown

• I hold ungeared positions.

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