Three Things (5/5)

Buffett Passes the Torch

Warren Buffett announced he will step down as CEO of Berkshire Hathaway at the end of 2025, naming Vice Chairman Greg Abel as his successor. Buffett, now 94, expressed full confidence in Abel’s leadership and used the occasion to reiterate his skepticism of tariffs as a long-term economic strategy. Berkshire’s Q1 operating profit fell 14% to $9.64 billion, but the firm’s cash hoard reached a record $347.7 billion—giving Abel plenty of dry powder as he prepares to take the reins.

The transition is more than symbolic—it’s strategic. Abel now holds the keys to one of the largest capital allocators in the world at a time of historic cash build-up and macro volatility. The sharpest lens will be on how aggressively he puts that cash to work—and whether he can write the next great chapter without rewriting Buffett’s playbook. This is the end of an era, but also a test: can Berkshire thrive without the world’s most legendary investor at the helm?

No Cuts, No Compromise

Despite loud calls from President Trump to slash interest rates, the Federal Reserve is expected to hold its benchmark rate at 4.25%-4.5% when it meets this week. Chair Jerome Powell remains focused on battling inflation—especially as tariff-related pressures build—and is signaling little urgency to ease, even as GDP shrank 0.3% in Q1. This data-political mismatch has heightened market tension and left investors parsing every Fed word for signs of future movement.

Powell’s stance reinforces the Fed’s independence—but also its dilemma. Holding firm protects policy credibility and inflation control, but risks letting a shallow slowdown deepen. The Fed now finds itself walking a tightrope between fiscal noise and real economic fragility, with inflation, growth, and political pressure pulling in different directions. The next move won’t just steer rates—it will shape trust in the Fed’s ability to stay apolitical under fire.

From Likes to LLMs

Meta has officially launched its standalone AI assistant app, challenging OpenAI’s ChatGPT and Google’s Gemini with a new consumer-facing platform built on its Llama 3 model. Unlike previous integrations within Instagram or Facebook, the new Meta AI app lives on its own—available on iOS, Android, and the web—offering image generation, search, productivity tools, and conversational capabilities in one place.

This launch isn’t just about keeping pace in the AI race—it’s about owning the next interface layer. By stepping beyond social media, Meta is positioning itself to become a daily-use AI utility—part assistant, part engine for future ad and commerce revenue. With open-source cred and massive distribution, Meta has a shot at reshaping how users interact with information and entertainment. The question now: can it turn usage into dominance, and dominance into monetization? Either way, Zuckerberg isn’t just chasing AI—he’s trying to control the front door to it.