Don’t lose sight of the long term. It’s a core message from the eighth edition of Valuation: Measuring and Managing the Value of Companies, McKinsey’s seminal guide for corporate-finance professionals. It also describes the unique investment approach of the legendary investor Warren Buffett, who will step down as CEO of Berkshire Hathaway at the end of 2025. In this episode of The McKinsey Podcast, we hear an excerpt from our Author Talks series featuring Valuation coauthor and McKinsey Partner Tim Koller and Editorial Director Roberta Fusaro. They talk about what’s changed in the business world since the first edition of Valuation was published, some 35 years ago. He also touches on Buffett’s approach to investing, including why it worked and whether it can be replicated.

Articles/pieces mentioned:

Tariffs and trade: Preparing for the unpredictable

Confronting the affordable-housing crisis

Theme music composed, performed, and produced by Joy Ngiaw