Drawing Lessons from the Berkshire Hathaway 2025 Annual Meeting, Bill Gates’ Announcement, and the One Big Beautiful Bill (H.R. 1)
Introduction
At Inter CPA, we view risk and opportunity as two sides of the same coin. Every new challenge brings potential for adaptation, innovation, and value creation. In this edition of the Risk & Opportunity Report, we draw lessons from three significant events that hold wide-ranging implications for investors, businesses, and mission-driven organizations:
- The 2025 Berkshire Hathaway Annual Meeting
- The announcement that the Gates Foundation will wind down within the next 20 years
- The recently proposed One Big Beautiful Bill (H.R. 1)
Two themes emerge as especially critical: the accelerating impact of AI and the strategic importance of leadership transitions. Both represent areas where risk and opportunity are accelerating rapidly and where strategic decisions made today will shape outcomes for decades to come.
Climate Risk & Resilience
Risk: The most glaring takeaway from the Berkshire meeting was Warren Buffett’s candid admission of miscalculating the climate risk exposure of PacificCorp, the Berkshire-owned utility. The increasing frequency and cost of climate-related disasters, particularly wildfires, had not been fully integrated into the company’s risk framework.
Opportunity: This underscores the urgency for organizations to treat resilience not as a cost, but as a source of competitive advantage:
- Integrate climate scenario modeling into decision-making.
- Invest in adaptive infrastructure and diversified revenue streams.
- Engage proactively with insurers and regulators on climate-related adjustments.
- Align investment and operational policies with ESG principles to strengthen climate risk management.
Lesson: No sector is immune to climate risk, but proactive resilience, supported by robust ESG frameworks, can build trust, value, and long-term sustainability.
Policy Volatility & Strategic Foresight
Risk: The “One Big Beautiful Bill” introduces significant political and regulatory uncertainty:
- Reduced federal revenues may lead to future cuts in public services and nonprofit funding.
- Rollbacks of clean energy incentives could disrupt the momentum for sustainability investments.
- Expansion of capital gains deductions may fuel asset bubbles in certain sectors.
- Higher Excise Tax on Private Foundation Investment Income
Opportunity: In volatile environments, strategic foresight becomes a differentiator:
- Develop proactive fiscal stress tests that include updated tax planning and forecasting scenarios.
- Conduct sector-by-sector analysis to identify where mission-driven capital and services will be most needed.
- Engage in advocacy to promote balanced, sustainable policies.
Lesson: Policy shifts create both risks and windows of opportunity for those who prepare strategically. Nonprofits and mission-driven businesses must integrate fiscal agility into their core operating models.
AI Risks & Responsible Innovation
Risk: Buffett warned of AI-driven scams, deepfakes, and fraud, highlighting the reputational and financial dangers posed by the rapid adoption of generative AI.
Opportunity: Organizations that lead with responsible innovation and robust governance will stand out:
- Establish board oversight and AI ethics frameworks.
- Strengthen internal controls and public communications.
- Educate stakeholders about the risks and opportunities associated with artificial intelligence (AI).
- Leverage AI ethically to improve efficiency and transparency.
Lesson: Trust is a competitive asset in the AI era. Responsible leadership in this space will build long-term stakeholder confidence. At Inter CPA, we view AI as both a critical risk and a transformational opportunity that will redefine how financial sustainability is managed.
Leadership in Times of Transition & Global Adversity
Risk: In politically and economically polarized environments, global leadership faces increasing pressure to compromise on transparency, ethics, and democratic values. The announcement that the Gates Foundation will wind down within the next 20 years also highlights a risk of mission discontinuity in the nonprofit sector. Meanwhile, amid political backlash, some leaders are downplaying the importance of ESG (Environmental, Social, Governance) principles, heightening reputational, regulatory, and operational risks.
Opportunity: Buffett’s recommendation to watch Becoming Katharine Graham and the election of Pope Leo XIV serve as timely leadership lessons: authentic leadership grounded in values can guide organizations through adversity and transition. ESG continues to matter greatly; organizations that align with these principles will attract trust and capital.
Additionally, while some legacy institutions are planning transitions, a growing number of foundations are increasing their investments in philanthropy and leadership development. This includes organizations such as the MacArthur Foundation, the Marguerite Casey Foundation, Freedom Together, the Northwest Area Foundation, the Mellow Foundation, and others. Mission-driven organizations should actively engage with this emerging philanthropic landscape, building new relationships and positioning their work for greater impact and sustainable funding.
Lead by example: The recent passing of José “Pepe” Mujica, former President of Uruguay, offers a lasting lesson in ethical leadership. Known as “the world’s poorest president,” Mujica lived an austere life and donated 90% of his salary to nonprofit organizations supporting low-income and small businesses. His legacy reminds us that authentic leadership is not measured by wealth or power, but by values and service to others. This message resonates deeply in today’s complex global environment.
Organizations and mission-driven entities should:
- Reaffirm organizational values and leadership principles.
- Develop leadership pipelines, succession planning, and governance innovation.
- Engage in global dialogues on peace, sustainability, and ethics.
- Align investment and operational policies with ESG frameworks or the Sustainable Development Goals (SDGs)
- Model transparency, humility, and resilience.
Lesson: Planned leadership transitions, principled leadership in adversity, robust ESG practices, proactive engagement with new philanthropic opportunities, and personal examples of servant leadership offer pathways to strengthen and future-proof organizations. In a divided world, ethical leadership and moral clarity remain powerful differentiators.
Geopolitical Risk & Global Resilience
Risk: The ongoing conflicts in Ukraine, Sudan, and Gaza serve as a reminder that geopolitical instability has become a permanent characteristic of the global landscape, affecting supply chains, capital markets, donor priorities, and regulatory frameworks.
Opportunity: Organizations that embed geopolitical awareness and adaptive scenario planning into their risk management will be better prepared to thrive.
- Diversify funding sources and markets.
- Monitor geopolitical signals and regulatory shifts. Align donor engagement strategies with emerging humanitarian priorities.
- Build flexibility into supply chains and partnerships.
- Promote global solidarity, recognizing that we are one human race living on the same planet. Support organizations such as the International Committee of the Red Cross, Save the Children, CARE International, United Nations agencies, World Central Kitchen, International Rescue Committee, Médecins Sans Frontières (Doctors Without Borders), Caritas, and other peacebuilding agents to help address conflicts and foster shared humanity.
Lesson: In an interconnected world, geopolitical resilience and solidarity must become part of every organization’s financial sustainability strategy. We cannot ignore what is happening around the world; we must actively seek pathways toward peace and human dignity.
Conclusion
From climate risk miscalculations to regulatory overhauls to timeless lessons in ethical leadership, we are entering an era where traditional models of value investing and risk management are no longer sufficient. But as always, where there is risk, there is opportunity.
At Inter CPA, we will continue to deepen our focus on:
- ESG integration
- Dynamic scenario planning
- Ethical leadership in finance
- Responsible innovation
We encourage our clients and peers to reflect on these lessons and to embrace risk as an engine for smarter, more sustainable growth. These lessons underscore that agility, ethics, and resilience will increasingly define long-term value.
#RiskManagement #Opportunities #WarrenBuffett #HR1 #ClimateRisk #FinancialSustainability #InterCPA #EthicalLeadership #Nonprofits
References:
The 2025 Berkshire Hathaway Annual Meeting. (May 3, 2025) https://www.youtube.com/live/1LWBphTImy4
Gates, Bill (May 8, 2025). My new deadline: 20 years to give away virtually all my wealth. https://www.gatesnotes.com/work/save-lives/reader/20-years-to-give-away-virtually-all-my-wealth
H.R.1 – One Big Beautiful Bill Act (House Committee on Rules) https://www.congress.gov/bill/119th-congress/house-bill/1
Becoming Katharine Graham (2025) https://www.amazon.com/Becoming-Katharine-Graham-George-Kunhardt/dp/B0DCCCRYKL
