- Stocks To Space
- Posts
- The Buffett Blueprint
Hey everyone,
The conference hall at the London Stock Exchange buzzed with portfolio managers comparing notes over coffee.
But when the speaker from one of the major SA asset managers clicked to his next slide—"The Buffett Blueprint"—the room went quiet.
His presentation reflected on Warren Buffett's final Berkshire Hathaway annual meeting held in Omaha in May.
“Thirty-five thousand people packed that arena,” he said, his voice carrying the weight of witnessing history. “It really was Woodstock for Capitalists. But this time, we all knew we were watching the end of an era.”
We were about to hear what it felt like to watch a 94-year-old legend pass the torch after six decades of compounding brilliance.
The investing legend who had built one of the most successful businesses in history was stepping away.
And suddenly, I realized I was thinking less about portfolio allocation and more about what we could learn about building something that lasts.
Mind-boggling numbers
Buffett announced his retirement at 94 after a 60-year run that delivered 9.5% alpha over the S&P 500.
Said differently, Berkshire Hathaway could fall 99% from its peak and still beat the index over his tenure.
But here's the stat that I still struggle to wrap my head around: 90% of Buffett's net worth was accumulated after age 65.
Ninety percent.
After sixty-five.
While most people were thinking about winding down, Buffett was just hitting his stride in compounding.
The patient builder
“Someone's sitting in the shade today because someone planted a tree a long time ago.”
A lot of founders struggle with the tension between moving fast and building something that lasts.
We live in a world that celebrates overnight successes and unicorn valuations.
But Buffett's entire philosophy runs counter to that narrative.
He understood something most builders miss: the real magic happens when you optimize for decades, not quarters.
For founders, this translates into compound product improvements that competitors can't replicate quickly.
It means building user trust over time rather than burning through goodwill for short-term growth.
It means treating your equity like Buffett treated Berkshire shares—not as lottery tickets, but as ownership stakes in something you're building to last generations.
The founders who grasp this plant their trees early and tend them obsessively.
They ship features that won't pay off for years.
They say no to revenue that doesn't align with their long-term vision.
They build systems and culture that can scale beyond their personal involvement.
Courage in being contrarian
“Be fearful when others are greedy and greedy when others are fearful.”
Most founders will know this quote.
But hearing it in the context of Buffett's final act hit differently.
Here was someone who had lived through decades of market cycles, tech bubbles, and economic crashes.
Someone who bought when others were selling and held when others were trading.
For builders, this principle extends far beyond investment timing.
It's about having the courage to work on problems that seem boring or unsexy when everyone else is chasing the latest shiny object.
It's about doubling down on your core business when competitors are pivoting to whatever's trending on Product Hunt.
It's about building in spaces others have written off as ‘too hard’ or ‘already solved.’
The most successful founders I know have this contrarian instinct baked into their DNA.
They see opportunity where others see obstacles.
They build when others are talking.
They stay focused when others are scattered.
The market rewards this kind of thinking, but only over time horizons that most people can't stomach.
The compound effect of character
“It's better to hang out with people better than you. Pick out associates whose behavior is better than yours and you'll drift in that direction.”
This was the quote the speaker had opened with, and it lingered in my mind long after his presentation ended.
As founders, we obsess over product-market fit and growth metrics.
But Buffett understood something deeper: the people you surround yourself with compound just like investment returns.
Your cap table should embody the character and wisdom of the people betting on your vision.
Your early hires shape the DNA of your company culture for decades.
Your peer group should positively influence how you think about problems, opportunities, and trade-offs.
Jeff Bezos studied Buffett's letters religiously and adopted the same long-game mindset for Amazon.
He understood that surrounding himself with patient, principled thinkers would help him make better decisions during the inevitable storms.
The founders who get this right curate their inner circle as carefully as Buffett curated Berkshire's portfolio.
They choose advisors who think in decades, not quarters.
They hire people who challenge their thinking rather than sycophants.
They build relationships with other founders who understand compounding.
Planting your trees
As founders, we plant trees every day without realizing it.
Every system we build thoughtfully rather than hastily.
Every hire we make based on character rather than just skills.
Every decision we make with ten-year consequences in mind rather than ten-quarter targets.
The shade we'll sit in years from now is determined by the trees we plant today.
Buffett spent 60 years proving that patient, principled building compounds into something magical.
The question is: what trees are you planting today?
And more importantly: will you have the patience to let them grow?
Was this newsletter forwarded to you? If you liked it, sign up here.
And, if you loved it, forward it to your friends and family.
Thanks for reading,
— Luca
What did you think of today's edition?(Let me know how I can improve) |
HOW I CAN HELP 🤞
P.S. Want to work together?
Get your free AI audit: If you’re still manually doing work that AI could handle in minutes, I'll show you exactly where you're bleeding time and money. In 25 minutes, I'll audit your current workflow and map out your personalized AI transformation roadmap. This is the same process I used to save 15+ hours per week in my own business. 🤖
See my complete tool stack: Beyond what I've shared in my AI operating system, I maintain a living document of every AI tool I test, why I use it, and which ones actually move the needle. Access my complete AI toolkit by reaching out here. 💼
That’s it from me. See you next week, Luca 👋
Reply