Squawk Pod – "2025 Winds Down: Warren Buffett, AI Automation, & WBD’s Bidders"
Date: December 31, 2025
Hosts: Becky Quick, Joe Kernan
Notable Guests: Sal Khan (Khan Academy), Courtney Reagan (CNBC), Bill Simon (Former Walmart US CEO)
Episode Overview
On this special year-end episode, the Squawk Box team reflects on an eventful 2025 packed with market superlatives, major corporate leadership changes, and the mounting impact of artificial intelligence (AI) on jobs. From Warren Buffett’s official step-down as CEO of Berkshire Hathaway to Sal Khan’s provocative proposal for companies to fund worker reskilling in an AI-driven world, the episode explores the year’s biggest headlines and what’s ahead for 2026. Key topics include Wall Street’s performance, seismic shifts in retail, intensifying media M&A activity, and the pressing need for corporate responsibility amidst technological disruption.
Key Discussion Points & Insights
1. 2025 Market Wrap-Up and Security in NYE Celebrations
Timestamps: 02:33 – 04:41
- NYE Security: Times Square is described as "the most locked down I have ever seen," with a massive police presence due to heightened global security threats.
- Market Superlatives:
- Dow: up ~14%
- S&P: up >17%
- NASDAQ: up 21%
- Russell 2000: up just over 12%
- “All of the major averages are on pace for their sixth positive year out of the last seven.” (Becky Quick, 03:37)
- Precious Metals Rally: Silver (+143%) and Gold (+60%) see huge surges, marking their best years since 1979.
- Debate on Correlation: Despite technical arguments, gold and silver's tandem moves remain a point of curiosity for hosts.
- Bitcoin: Remains resilient, illustrating different trajectories compared to precious metals.
2. Media M&A: Warner Bros. Discovery and Paramount Deal Making
Timestamps: 07:51 – 09:54
- Warner Bros. Discovery (WBD): Poised to reject Paramount/Skydance’s offer, potentially favoring an $80B cash and stock play from Netflix.
- Personal Guarantees & Valuations:
- Discussion on value extraction from traditional cable assets during media consolidation, with the hosts playfully speculating about their own valuation in the coming spin-offs.
3. Warren Buffett’s Last Day as Berkshire Hathaway CEO
Timestamps: 10:05 – 13:56
- Major Transition: Warren Buffett steps down as CEO after 60 years; Greg Abel assumes the role but Buffett remains as chairman, still controlling 30% of the vote.
- Buffett’s Legacy:
- "He's done a lot for the NCAA March Madness… A lot of things. I mean, he's given me a brick." (Becky Quick, 11:37)
- Philanthropy focus: Already given away $50B+ with plans to donate 99.9% of wealth.
- “He's changed the... way that you invest. How many people's lives is he enriched?” (Joe Kernan, 11:09)
- Leadership Structure:
- “Greg has been running a lot of the non-insurance companies for years now… and a lot of the problems that Warren Buffett didn’t really want to deal with were the things that Greg Abel’s been dealing with.” (Becky Quick, 12:29)
- Munger’s Wisdom: Charlie Munger noted companies want you to overpay but only once, stressing the importance of long-term value for shareholders.
4. AI-Driven Automation and Corporate Responsibility: Sal Khan’s 1% Proposal
Timestamps: 19:28 – 25:55
- Job Displacement Predictions:
- Sal Khan argues that automation’s employment effects will dwarf those seen in globalization or immigration, citing impacts on call centers and driving jobs.
- “His motivation was he’s taken over a call center in the Philippines and he’s going to be laying off 80% of the workforce and replacing them with an AI.” (Sal Khan, 20:28)
- 1% for Reskilling:
- Advocates that any company benefitting from automation should dedicate 1% of profits to retrain displaced workers—a “modest proposal” with international precedents (e.g., India mandates 2%, UK requires 0.5% for reskilling).
- “If folks wait too long, the political winds are going to switch.” (Sal Khan, 01:12 and 20:53)
- Skepticism and Pushback:
- Becky Quick challenges the voluntariness and effectiveness of such a measure, suggesting many companies claim automation will actually create more jobs in the long run.
- Sal Khan responds: “The pitchforks already seem to be coming out… This is before things have really gotten bad.” (Sal Khan, 24:08)
- Importance of urgency and peer pressure if voluntary efforts are not enough; warns that heavy-handed regulation could be worse for business.
- “If this is something that still stays in the private sector… it can be nimble, because we know what the alternatives are going to be.” (Sal Khan, 25:22)
5. Retail: 2025 Review and 2026 Outlook
Timestamps: 31:06 – 41:02
- XRT (Retail ETF): Up 8%, lagging S&P 500; e-commerce ETF (IBUY) gained 16%.
- Top Performers: Discounters/staples outperformed:
- Dollar General, Five Below: +79%
- Dollar Tree: +65%
- Walmart: +23%
- Victoria’s Secret: nearly +200% in six months
- Department Store Rebound: Kohl’s: +45%, Macy’s: +31%—though seen as temporary by UBS.
- Challenges: Tariffs and cost pressures, but big retailers like Walmart, Costco, Amazon were able to “digest the tariff news and really… push back on the manufacturers and get some assistance there.” (Bill Simon, 36:00)
- Leadership Shakeups:
- Walmart: Doug McMillon retires, John Furner ascends (Feb 1)
- Target, Lululemon: Also incoming leadership changes
- Expert Outlook (Bill Simon):
- Scale will continue to dominate; small/mid-sized retailers may struggle.
- “If you can’t find a reason to be, then you’re not going to be,” reflecting the existential crisis for traditional department stores. (Bill Simon, 37:41)
- Bullish on Target (“it only has to get better”), Costco (“a beast... valuation is pretty low”), and Home Depot (home improvement rebound expected).
- “Consumer’s been resilient. Their paychecks have been healthy because wages have gone up… but any number of things could happen.” (Bill Simon, 40:01)
6. Global New Year’s Celebrations
Timestamps: 28:15 – 30:14
- Hosts cheer on New Year’s Eve fireworks as midnight sweeps across time zones worldwide, with commentary on security, traditions, and the transience of New Year’s resolutions (“around 80% of people abandon their New Year’s resolutions by February”—Becky Quick, 30:14).
Notable Quotes & Memorable Moments
-
On 2025’s Market Performance:
“It has been a good time for investors these last seven years, but it has been a year of a lot of superlatives.”
—Becky Quick, 03:37 -
On Buffett’s Impact:
“He’s changed the... way that you invest. How many people’s lives is he enriched?”
—Joe Kernan, 11:09“His plan is to give away more than 99.9% of all his wealth.”
—Becky Quick, 11:42 -
On Automation & AI:
“If folks wait too long, the political winds are going to switch.”
—Sal Khan, 01:12 / 20:53“Automation is going to hit a lot harder.”
—Sal Khan, 20:51“Hope isn't a strategy here. We have to get ahead of the curve.”
—Sal Khan, 21:45 -
On Retail Winners:
“Scale is going to continue to win... the big guys, Wal Mart, Costco, Amazon, find ways to digest the tariff news and really... push back on the manufacturers and get some assistance there.”
—Bill Simon, 36:00“If you can't find a reason to be, then you're not going to be.”
—Bill Simon, 37:41
Segment Timestamps Guide
- [02:33–04:41]: Markets and security at Times Square
- [07:51–09:54]: WBD–Paramount–Netflix M&A & cable valuations
- [10:05–13:56]: Warren Buffett’s transition; succession insights
- [19:28–25:55]: Sal Khan on AI automation and the 1% profits proposal
- [31:06–41:02]: Retail sector review & Bill Simon on industry trends
Conclusion
This closing episode of 2025 captures the optimism, turbulence, and big pivots shaping business and society as the year ends. Anchored by trademark energy and candid banter, Squawk Box recaps 2025’s standouts—ranging from Berkshire’s biggest succession to the existential questions posed by AI and the evolving retail landscape. Looking ahead to 2026, the message is clear: adaptability, urgency, and thoughtful leadership will be essential for business and workers alike.
Happy New Year from the Squawk Pod team!