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Warren Buffett’s principles guide Berkshire as a new era of leadership begins

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Good morning. The Warren Buffett era is soon coming to an end.

When the legendary investor announced in May 2025 that he would step down as CEO of Berkshire Hathaway (No. 6 on the Fortune 500) effective Jan. 1, 2026, it marked a shift in decades of leadership. Buffett will be succeeded by Greg Abel as CEO, who has been vice chairman of Berkshire’s non-insurance operations. Buffett will remain with the company as chairman of the board after the transition.

For six decades, Berkshire shareholders have never needed to study Buffett’s investing aptitude. They could just buy Berkshire stock and let him do the work, with amazing results. In his new Fortunefeature article, my colleague Geoff Colvin examines what life will be for shareholders and the company after Buffett steps down.

Colvin raises the following questions: Is Berkshire Hathaway so immersed in Buffett’s way of investing that his successors will carry it on institutionally? Or is Buffett unique in so many ways that Berkshire can never hope to continue his staggering performance?

He suggests that Buffett’s 1977 letter to shareholders may suggest an answer.

Colvin writes: “He described the criteria of a truly great, enduring business, as understood by him and his longtime business partner, Charlie Munger. The criterion of ‘enduring,’ he wrote, ‘eliminates the business whose success depends on having a great manager…Of course, a terrific CEO is a huge asset for any enterprise…But if a business requires a superstar to produce great results, the business itself cannot be deemed great.’”

“Buffett is obviously a superstar, and it’s hard to see any inherent factors, other than Buffett, that have made Berkshire Hathaway so hugely successful. He seems to have chosen excellently with Abel and Berkshire’s other top executives. But the world won’t know how good they really are until they’re on their own.”

“Has Buffett picked a successor as superbly as he picks stocks? After 60 years, it’s the hardest call Berkshire’s shareholders have ever had to make.” Colvin offers a deep dive into five investing lessons everyone can learn from Buffett. You can read the complete article here.

I recall asking Jonté Harrell, CFO at ZenLedger, a tech company that provides tax and compliance software for digital assets, about his thoughts on Buffett after he attended Berkshire Hathaway’s annual shareholder meeting in Nebraska for the first time last year. Harrell told me that Buffett’s insights have been helpful to him throughout his career.

Harrell added that along with investing advice, Buffett offers a lot of life advice: how to live (ethically, and below your means), how to do business (with emotional discipline), and how to give back (through The Giving Pledge), he said.

Only time will tell whether Berkshire Hathaway’s next chapter can live up to the legacy Buffett leaves behind, but his enduring principles ensure that the company, and its shareholders, are ready for what comes next.

SherylEstrada
sheryl.estrada@fortune.com

Leaderboard

Eric Gerratt, CFO of Bridger Aerospace Group Holdings, Inc. (Nasdaq: BAER, BAERW), one of the nation’s largest aerial firefighting companies, is planning to retire. Anne Hayes was appointed deputy CFO. Hayes has resigned from the board as part of the transition and is anticipated to assume the CFO role following Gerratt’s retirement, planned for after the filing of the Company’s 10-K in March. Hayes has two decades of experience in principal investing and financial leadership at private and publicly listed companies, most recently with Quadrant Capital Advisors. 

Olivier Leonetti, EVP and CFO executive vice president and CFO of intelligent power management company Eaton (NYSE: ETN), will be leaving the company on April 1, 2026, as part of a planned transition. Leonetti joined Eaton in January 2024, having previously served for almost five years as a member of Eaton’s board. An internal and external search will be conducted. Leonetti will continue with his current responsibilities until a successor is named.

Big Deal

MIT Sloan Management Review and Boston Consulting Group (BCG) have released a new report, “The Emerging Agentic Enterprise: How Leaders Must Navigate a New Age of AI.” According to the findings, 76% of the executives surveyed view agentic AI as more like a coworker than a tool.

The report is based on a survey of 2,102 executives across 21 industries and 116 countries, as well as interviews with senior leaders. Additional key findings are that more than half (58%) of agentic AI leaders expect governance structure changes within three years, with expectations that AI systems will have decision-making authority growing 250%. Ninety-five percent of individuals at leading agentic AI organizations report AI positively impacting their job satisfaction, according to the report.

Going deeper

Rewiring the future of work” is PwC’s 2025 Global Workforce Hopes and Fears Survey. The findings highlight workers’ sentiment on topics including AI’s impact on productivity, growth, and jobs. The findings are based on nearly 50,000 respondents spanning 28 sectors in 48 major economies.

Overheard

“The Exit Economy is here. If policymakers ignore it, Black women will continue to pay the highest price.”

—Katica Roy, the CEO and founder of Denver-based Pipeline, a SaaS company, writes in the Fortune opinion piece, “The exit economy is here. Black Women are paying the highest price.” Roy writes: “Since February, Black women have lost 297,000 jobs. Another 223,000 remain unemployed. And 75,000 have been pushed out of the labor force entirely. I estimate that these exits alone are draining an estimated $9.2 billion from U.S. GDP this year.”



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The rise of on-demand leadership in the AI economy

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A quiet but consequential shift is underway in the executive labor market. Companies are rethinking how they access senior judgment in the AI era. 

Rather than defaulting to full-time executive roles that command lofty salaries and long-term overhead, companies are increasingly turning to experienced consultants, strategists, and advisors to provide leadership on a limited and targeted basis.

This is not a dilution of leadership, but a recalibration of where experience delivers the most value.

According to LinkedIn’s latest Jobs on the Rise report, the fastest-growing roles in the U.S. economy sit at the intersection of AI and strategy. AI engineers claimed the top spot, while AI consultants and strategists ranked No. 2 overall. Strategic advisors and consultants also placed in the top 10. Together, the data show that as execution becomes cheaper, human judgment becomes more valuable.

The underlying driver is the implementation gap. After years of AI experimentation, organizations are struggling to convert tools into returns. While they do not lack models or software, many lack orchestration. Companies are increasingly turning to AI consultants and strategists to align technology with business realities, governance, and incentives, work that requires credibility, cross-functional fluency, and the kind of judgment typically associated with senior leadership roles.

The labor market now reflects a clear division of labor. Demand is rising simultaneously for full-time technical AI talent and for senior professionals who can translate those capabilities into business outcomes. As companies scale internal AI teams, they are increasingly relying on external advisors and consultants to provide the judgment required to direct that work at critical moments.

The supply side of this shift is shaped by organizational reality. Executives continue to make daily decisions, but AI has concentrated risk into fewer, more complex, and higher-impact choices around operating models, capital allocation, and governance. Rather than expanding permanent headcount, companies are bringing in experienced external leaders to guide those decisions when the stakes are highest.

The economics reinforce the model. Although senior advisors and consultants often command higher hourly rates, their total annual cost is typically a fraction of a comparable full-time executive role because they are engaged for a limited scope and time. Just as important, this approach allows organizations to draw on multiple forms of expertise rather than binding themselves to a single permanent hire.

The talent profile filling these roles is equally telling. Many of these advisors are former founders, CEOs, and COOs. Experience functions as a filter. LinkedIn’s data shows that many of the fastest-growing strategic roles carry a median of eight or more years of experience. These are not entry-level positions, but mid- or second-act careers for professionals with deep industry context.

The rise of founders and independent consultants on the Jobs on the Rise list also signals that this shift is driven by talent behavior, not just employer demand. Senior professionals are increasingly opting for career paths that offer autonomy, variety, and the opportunity to leverage their skills rather than committing to a single organization in an uncertain environment.

As AI automates and cheapens execution, the market value of human judgment, strategy, and accountability rises. As a result, pricing power shifts from doing the work to deciding what work should be done and how it should scale.

In this environment, experience is the moat. What is often described as “fractional leadership” is better understood as the unbundling of executive judgment from full-time roles. Over time, this model is likely to become not a stopgap but a structural response to the redistribution of value, risk, and expertise in the AI economy.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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Trump finds a ‘solution’ to Greenland crisis, backs off on 10% tariff threats

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President Donald Trump seems to have found a “solution” to the Greenland crisis following talks with NATO leadership on Wednesday. He said he will back away from the threat to impose 10% tariffs on eight European allies — an announcement that had sparked a mass sell-off on Tuesday — that were set to take effect on Feb. 1.

The reversal came only hours after Trump walked back an earlier threat to use force to secure Greenland during his World Economic Forum speech in Davos, Switzerland.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on Truth Social, adding that the plan would be “a great one for the United States of America, and all NATO Nations.” He said the tariffs would be shelved “based upon this understanding.”

The announcement followed a meeting with NATO Secretary General Mark Rutte, who has been seeking to defuse growing tensions between Washington and its European allies as Trump escalated rhetoric over Greenland’s strategic importance. Trump also said on Truth Social that additional discussions were underway concerning what he called the “Golden Dome” initiative related to Greenland, without providing details.

Markets reacted sharply to the apparent de-escalation. The S&P 500 rose 1.5% in afternoon trading, while long-term U.S. Treasury yields fell, signaling investor relief after days of volatility. Despite this pullback potentially confirming yet another instance of the “TACO trade,” or “Trump Always Chickens Out,” major questions remain over the substance of the framework. 

Trump has repeatedly said that anything less than controlling all of Greenland is “unacceptable.” It’s unclear, and seems unlikely, that the outline discussed with NATO leadership satisfies that particular condition, given that Denmark reiterated that it would not give up Greenland’s sovereignty after Trump’s speech on Wednesday. 

In his Truth Social post, Trump said Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would lead negotiations going forward and report directly to him.The announcement also comes after the EU suspended trade negotiations with the U.S. and suspended the trade agreement they have had in place since August. CATO scholar Kyle Handley, in a statement provided to Fortune, wrote that the suspension should have never been seen as a “dramatic breakdown,” because “there was never a real deal to begin with.”

“What’s unraveling now was a fragile, politically convenient set of press releases that papered over fundamental disagreements and was always vulnerable to executive-level tariff threats.”



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Trump says Europe does one thing right: drug prices

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President Donald Trump told an audience of thousands of executives and global leaders at the World Economic Forum that European countries have taken a turn for the worse. Trump said his friends who visit the continent tell him they don’t recognize the region—and “not in a positive way.”

“I love Europe, and I want to see Europe go good,” Trump said on Wednesday at the Davos, Switzerland, meeting. “But it’s not heading in the right direction.”

But the president conceded that Europe is doing one thing better: keeping its drug prices low. 

“A pill that costs $10 in London costs $130. Think—it costs $10 in London, costs $130 in New York or in Los Angeles,” he said to murmurs from the crowd. 

Europe may not be recognizable to Trump’s friends, but Trump said he has other friends returning from London, remarking on the affordability of medication there. Indeed, a 2024 Rand study found that across all drugs, U.S. customers paid on average 2.78 times higher prices than in 33 other countries, including France, Germany, and the United Kingdom, in 2022.

The president has adopted a “most favored nation” policy meant to both lower drug costs for Americans while pushing other countries to pay more. Trump made a concerted effort in his second term to address astronomical drug costs, including minting a deal with 17 pharmaceutical companies to slash U.S. prices to match medication costs overseas. The move followed a sweeping executive order issued in May to introduce the most-favored-nation policy. On Wednesday, Trump alluded to an executive order he signed last week, pledging to lower drug prices by up to 90%.

Fallout with France

Trump said pharma companies did not initially believe countries would be willing to change prices. Trump noted in his remarks that he first approached French President Emmanuel Macron about increasing drug prices, but Macron refused.

“I said, ‘Emmanuel, you’re going to have to lift the price of that pill,” Trump said.

Trump said that threatening a 25% tariff on French goods, including wines and champagne, sealed the deal. Macron’s office disputed Trump’s assertion that he pressured the French president into lowering drug prices. 

“It’s being claimed that President @EmmanuelMacron increased the price of medicines. He does not set their prices. They are regulated by the social security system and have, in fact, remained stable,” Macron’s office said in an X post. “Anyone who has set foot in a French pharmacy knows this.”

Included in the post was a gif of Trump with animated “Fake news!” text overlaid on the image.

Health policy experts say drug prices in the U.S. are so high because of a system structured differently from other countries that allow companies to negotiate with individual insurance companies or pharmacy benefit managers, giving them more leverage to raise prices than in other countries’ systems, where there is one regulatory agency negotiating drug prices for a population.

Efficacy of Trump’s efforts to lower drug costs

Industry leaders think Trump’s efforts to lower drug costs could pay off. Vas Narasimhan, CEO of pharmaceutical giant Novartis, told Fortune’s Jeremy Kahn at a USA House session in Davos on Wednesday that Trump identified a valid issue in the high cost of U.S. drugs.

About two-thirds of new drugs on the market over the last decade have come from the U.S., a result of its highly developed research and development (R&D) infrastructure. Some argue that other countries benefit from U.S. innovation without paying their fair share to support the industry’s growth.

“When you look at what underpins R&D in our industry, it’s been primarily in the United States,” Narasimhan said. “The United States is the source of more than half the profits of the industry, and without the United States, you wouldn’t have all of these innovations, all these incredible medicines.”

Narasimham emphasized the need for a “more balanced approach” to funding R&D, implying that other countries should pay more for U.S.-produced pharmaceuticals. He pointed to Trump’s deal with the 17 drug companies as a “reasonable” solution.

Early signs, however, suggest drug prices have not come down. A January report from drug price research firm 46brooklyn found drug companies, including 16 firms with which Trump made deals since September, raised drug prices for at least some of their drugs in the first two weeks of 2026. The median increase of the 872 brand-name drugs with hiked prices was about 4%, the same rate as the year before.

Reuters similarly reported earlier this month, citing data from 3 Axis Advisors, that those 17 drug companies had raised the prices of 350 medications. Public health experts attributed the rise to the behind-the-scenes nature of the deals between drug companies and insurers.

“These deals are being announced as transformative when, in fact, they really just nibble around the margins in terms of what is really driving high prices for prescription drugs in the U.S.,” Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, told the outlet.

The Department of Health and Human Services did not immediately respond to Fortune’s request for comment.



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