Need a break from AI stocks? Here's how Warren Buffett still looms over red-hot Brooks Running.
I need a mental cleanse from thinking about AI and writing about AI and talking about AI on TV.
I am 1,000 fried to a crisp mentally from looking at Big Tech cash flow statements. I just need one day off to recharge, and this is that day.
So here’s what I have for you: a quick peek into the evolving Berkshire Hathaway (BRK-B), which still resembles pretty much the Warren Buffett-led Berkshire Hathaway — except Greg Abel is the CEO and Howard Buffett is the chair.
Recall that in September, the Oracle of Omaha stepped down as chairman and moved to the chairman emeritus role.
“What I do know is how fortunate we are to be owned by Berkshire Hathaway. I often talk about it with partners and our employees — that it’s a competitive advantage for us,” Brooks Running CEO Dan Sheridan said on Sozzi Unleashed. “I think on different time horizons than many of our competitors. I think in five-, 10-year time horizons. We’re investing for the long term. And the reason we can do that is because of Berkshire. And Warren is obviously the author of all of that, now with Greg. I report to Adam Johnson [NetJets CEO] at NetJets. We’ve got just consistent leadership, and it’s a competitive advantage for us in every market we go into.”
Berkshire Hathaway originally brought Brooks under its corporate umbrella in 2006 when Berkshire subsidiary Fruit of the Loom acquired Russell Athletic.
Recognizing the brand’s disciplined focus on high-performance footwear and consistent market share gains under then-CEO Jim Weber, Buffett elevated Brooks to a direct, standalone Berkshire subsidiary in 2012.
The move exemplified Berkshire’s classic acquisition playbook: backing an operationally autonomous business with a durable consumer moat and patient capital rather than imposing corporate synergies.
Under Berkshire’s decentralized ownership, Brooks avoided discounting wars and expanded globally, capturing the No. 1 market share spot across US specialty running retail with flagship franchises like the Ghost and Adrenaline GTS shoes.
Today, the brand is on fire around the world, partly because running is hot, but also because its product innovation has been on point. Brooks is seen as having some of the best running sneakers in the game today.
Brooks Running delivered 12% revenue growth through the first three quarters of this year.
Year to date through September, Brooks grew sales in all regions, increasing 9% in the Americas and Asia-Pacific (APAC) and 24% in Europe, the Middle East, and Africa (EMEA).
These results are so far removed from struggling Nike (NKE) and Under Armour (UA) that it’s laughable.
Score another W for Warren.
And Sheridan has big plans for more innovation.
“The next frontier for us is neuroscience and what the brain is unlocking to keep people in their flow state,” he said.
Back to Nvidia (NVDA), Google (GOOG, GOOGL), and CoreWeave (CRWV) analysis live on Sozzi Unleashed at 9:30 a.m. ET!
Follow Brian Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email him at brian.sozzi@yahoofinance.com.