Warren Buffett’s CEO Challenge: ‘Which Of Your Competitors’ Stocks Would You Buy?’

Legendary investor Warren Buffett has produced stock market returns that typically beat the S&P 500 each year.

Known for his long-term investing and buy and hold approach, Buffett may have another trick up his sleeve when talking to CEOs.

Buffett’s Desert Island Question: At the 2025 Berkshire Hathaway BRKBRK annual shareholders meeting, Buffett surprised the crowd with the announcement he would step down as CEO of the company at the end of the year.

While this may have put a somber mood on the weekend’s festivities, Buffett also provided many pieces of advice and pearls of wisdom to those in attendance through prepared remarks and question-and-answer segments.

At the shareholder meeting, Buffett gave one piece of advice involving a desert island.

“If you can talk to a CEO, ask them this question: if you were stuck on a desert island for 10 years, which of your competitors’ stocks would you buy? And which would you short?” Buffett said, as reported by CNBC’s Andrew Ross Sorkin.

Buffett added that this question would give CEOs the opportunity put their entire net worth into a competitor’s business or bet against a competitor, as reported by Financial Express.

“Every manager enjoys talking about the competition. They’re like school kids. I probably gained most of my industry insights just by ensuring they didn’t expect me to stick around too long.”

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Why It’s Important: Over the years, Buffett has provided plenty of investing advice and tips on how he helped grow the value of Berkshire Hathaway stock.

The desert island question follows an old question of asking people what CDs/music, books, or other forms of entertainment they would want to have if stuck on a desert island for years.

Investing in one stock for 10 years and not being able to sell it could be tense for investors in the current generation of short-term trading and 24-hour trading markets.

The question of CEOs answering which of their competitors stock they would want to own could provide clues about which companies have strong growth, are feared by the competition and have catalysts coming. Likewise, CEOs picking which stock to short could reveal competitors with weaknesses and potential market share losses or other negative items coming.

While this is a desert island indicator of sorts, it’s not to be confused with Buffett’s “desert island indicator.” Buffett previously said that if he was stuck on a desert island and could only get one financial metric, it would be the number of rail carloads, which he believes is one of the best ways to show the health of the economy.

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