🌊 And With That... Buffett's Out

The 🐐 of investing calls it quits.

It’s the end of an era: Warren Buffett is stepping down as CEO of Berkshire Hathaway. The Oracle of Omaha may go down as the most successful investor in modern history, having put together a track record whose numbers are hard to fathom:

• He outperformed the S&P 500 by 140x over the last 60 years;

• If you invested $1,000 in Berkshire Hathaway in 1964, it would be worth over $55M today;

• And 96% of Warren Buffett's net worth was accumulated after his 65th birthday.

Gen Z will probably say he’s overrated and that he invested against plumbers, but what a run for Mr. Buffett. Enjoy your Egg McMuffins in retirement, Mr. Money Bags.

–Max and Max

KEY STORY

Buffett to Retire

Warren Buffett announced his retirement, effective at the end of the year

• Buffett is the CEO of Berkshire Hathaway and arguably the greatest investor in history. Since 1965, he has invested in what he considers well-managed, long-term, and under-valued companies to turn Berkshire into the world’s eighth-most valuable company

• Today, it owns large stakes in many of the world’s most valuable companies, and fully owns dozens more, including GEICO, Dairy Queen, and BNSF, the US’ largest freight railroad

• Buffett said he intends for his successor to be Greg Abel, a top executive who Buffett first picked to succeed him in 2021

Dig Deeper

• At Berkshire’s shareholder meeting on Saturday, Buffett announced that he would be stepping down at the end of the year and that he intended for Greg Abel, a top lieutenant, to replace him

• Since 2021, Buffett has telegraphed that his retirement was nearing and that Abel would be the best replacement

• Buffett has formerly written that “Greg will be more successful than I have been, and if I said otherwise, my nose would grow.” In 2024, he wrote, “[Abel] in all respects is ready to be CEO of Berkshire tomorrow”

KEY STORY

AFD Labeled Extremist

Germany’s domestic intelligence service labeled the Alternative for Germany (AFD) extremist

• Polls suggest the AFD – an anti-immigration, populist conservative party – may currently be Germany’s most popular political party, although many Germans believe it poses a threat to democracy

• On Friday, German intelligence applied the “extremist” label to the party. The designation enhances the intelligence agency’s ability to surveil the AFD and would make it easier for the high court to ban it

Dig Deeper

• The AFD condemned the announcement, labeled it as politically motivated, and vowed to challenge it in court

• US Secretary of State Marco Rubio supported the party in a statement on X, writing, “Germany just gave its spy agency new powers to surveil the opposition. That’s not democracy – it’s tyranny in disguise.” He added that Germany’s “deadly open border immigration policies,” not the AFD, are extremist

• Germany’s foreign ministry responded to that tweet, writing that the designation “is the result of a thorough & independent investigation to protect our Constitution & the rule of law”

QUOTE OF THE DAY

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KEY STORY

Strong Jobs Data

After strong jobs data, US stocks made up for all their post-“Liberation Day” losses

• On April 2, Trump’s announcement of reciprocal tariffs (“Liberation Day”) caused a massive sell-off in stocks as economists forecasted an imminent recession

• Economic data released last week showed that the US economy remained strong, though, including a jobs report released Friday that showed 177,000 jobs were created, 40,000 more than economists expected

• The news led the S&P 500 to jump. It’s now above where it was before Trump announced the tariffs

Dig Deeper

• Some economists have warned that the tariff impacts may not be felt for months to come, as prices rise and supply chains reorient, and in April, one widely-used poll from the University of Michigan found that consumer sentiment was near all-time lows

• Despite those concerns, markets climbed on Friday, with the S&P notching its ninth-straight day of daily gains – its longest “winning streak” since 2004

KEY STORY

Trump Orders

President Trump issued orders to defund US public media and announced his intent to modify several holidays

• In the media order, Trump ordered the Corporation for Public Broadcasting – the CPB, which oversees government funding for PBS and NPR – to “cancel existing direct funding to the maximum extent allowed by law and shall decline to provide future funding.” It’s unclear if he has the right to do so

• Trump also announced his intent to change Veterans Day, on November 11, to “Victory Day for World War I” and to declare May 8, the date of Nazi Germany’s 1945 surrender, “Victory Day for World War II”

Dig Deeper 

• Regarding the former order, the CPB quickly responded to say that it answers to Congress, not the president

• “Congress directly authorized and funded CPB to be a private nonprofit corporation wholly independent of the federal government,” the organization said in a statement

• PBS’ chief executive called the order “blatantly unlawful,” while NPR said it would challenge it “using all means available”

• PBS received around 16% and NPR 2% of funding directly from the federal government, although both also indirectly receive public funding. At NPR, for example, government-funded local radio stations buy distribution rights from NPR

RUNDOWN
Some Quick Stories for the Office

🇺🇸 The White House reportedly intends for Secretary of State Marco Rubio to serve as National Security Adviser for at least six months, putting him in a powerful role that was famously held by Henry Kissinger under Presidents Nixon and Ford

💊 China is reportedly considering jumpstarting tariff negotiations with offers to crack down on the export of fentanyl ingredients

🗳️ The Reform Party – a populist conservative party led by Brexit architect Nigel Farage – performed well in numerous local elections, eating away at the center-right Conservative Party’s support

🇦🇺 Prime Minister Anthony Albanese and his center-left Labor Party won a second term in Australia. Like in Canada, where the left won days prior, Trump’s rhetoric was attributed with boosting the support for Albanese and his party

⚖️ The estranged father of Virginia Giuffre – the prominent Epstein accuser who apparently died by suicide late last month – said there’s “no way that she did… Somebody got to her”

What does Roca Nation think?

🧠 Today’s Question: What was a sign of wealth when you were growing up? (E.g., having a trampoline)

Replay to this email with your thoughts!

POPCORN
Some Quick Stories for Happy Hour

🇺🇸 Hide and Seek Champion: A woman in Wisconsin was found alive and well after being reported missing 62 years ago

🇬🇪 Courthouse Lost and Found: A jail in Georgia went into lockdown after officers couldn’t find a missing inmate convicted of murder, only to realize they had left him at the courthouse holding cell overnight

🔥 Firefighter Fanatic: A man from the UK was sentenced after admitting to setting his house on fire twice in one night, just to watch the firefighters work on extinguishing the flames

🐍 Double Header: A snake in California was born with two heads

🎡 Fyre Sale: The founder of the infamous Fyre Festival announced he is selling the festival after its sequel, scheduled for later this month, was canceled

ROCA WRAP
Starbase, Texas

Texas

Elon Musk's Starbase has officially been voted to become a city in this state.

Texas, the second-largest US state by both area and population, has increasingly become a magnet for tech companies and entrepreneurs seeking looser regulations and business-friendly policies. In recent years, the state has attracted numerous high-profile corporate relocations from California, including several of Elon Musk's ventures.

The southern coastal region near the Mexico border, once known primarily for beaches and wildlife preserves, has since become home to one of the world's most advanced rocket launch facilities, as SpaceX has bought up significant amounts of land and established facilities and housing for hundreds of employees.

On Saturday, this community voted overwhelmingly to become the new city of Starbase.

The election results showed 212 votes in favor versus just six opposed, with most of the 283 eligible voters being SpaceX employees. "Starbase, Texas is now a real city!" Musk proclaimed on X following the vote.

The newly formed city will be governed by a mayor and two commissioners who will have authority over planning, taxation, and other local matters. Bobby Peden, a SpaceX vice president who ran unopposed, will serve as Starbase's first mayor, alongside two commissioners who also have ties to the company. As a municipality with under 5,000 residents, Starbase will be able to levy property taxes up to 1.5%.

The Starbase incorporation represents another step in Musk's growing Texas footprint, which already includes the headquarters of his companies X and Boring near Austin. Unlike his development outside Austin, Starbase includes housing for company workers in what was previously a sparsely populated area.

Texas prides itself on independence and entrepreneurial spirit, and Starbase is the latest evidence of that.

EDITOR’S NOTE
Final Thoughts

Hope you all had a nice weekend (and a belated May the Fourth to all of you). Max T is currently in Connecticut for a report from richest part of the state (Greenwich and Darien) and later from its ex-industrial capital, Bridgeport. If you’re in the area, let us know where we should eat dinner the next two nights!

–Max and Max