Warren Buffett’s advice to Brooks CEO: ‘Make sure the brand is stronger at the end of the year than it was at the beginning’
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Warren Buffett’s advice to Brooks CEO: ‘Make sure the brand is stronger at the end of the year than it was at the beginning’

July 31, 2025
09:29 AM
8 min read
AI Enhanced
investmenteconomymoneytradingfinancialconsumer discretionaryretailmarket cycles

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July 31, 2025

09:29 AM

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s·CEO DailyWarren Buffett’s advice to Brooks CEO: ‘Make sure the brand is stronger at the end of the year than it was at the beginning’By Diane BradyBy Diane BradyExecutive Editorial Director, Fortune Media and author of CEO DailyDiane BradyExecutive Editorial Director, Fortune Media and author of CEO DailyDiane Brady is an award-winning journalist and author who has interviewed newsmakers worldwide and often speaks the global landscape

As executive editorial director of the Fortune CEO Initiative, she brings together a growing community of global leaders through conversations, content, and connections

She is also executive editorial director of Fortune Media and interviews newsmakers for the magazine and the CEO Daily .SEE FULL BIO Dan Sheridan, CEO of Brooks Running.Courtesy of Brooks RunningIn today’s CEO Daily: Diane Brady talks to the CEO of Warren Buffett’s favorite sports shoe brand, Brooks Running

The big story: Tariff deadline tomorrow

The : Mostly up except for China

Analyst notes from Wedbush on Apple’s AI strategy, Apollo Management on stablecoins, and Parthenon-EY on GDP

Plus: All the news and watercooler chat from Fortune

One of the toughest challenges for any company is making a niche brand feel new and cool

That’s especially tough in a market where costs are rising and consumers are spoiled for choice

And yet Brooks Running has been on a tear, with the Berkshire Hathaway subsidiary reporting it had 15% annual revenue growth in the first quarter

In the episode of Fortune’s Leadership Next podcast, CEO Dan Sheridan talks turning a favorite among hardcore runners into a broader lifestyle brand

It helps that health and wellness has become a priority for consumers at a younger age when brand preferences have yet to be set. “Gen Z right now is engaging and running earlier than any other generation in the history of fitness,” he says, noting that many started at the age of 11. “If you put one foot in front of the other, you’re our customer.” Nike, HOKA and plenty of other brands are chasing those feet, too

One reason Brooks can claim to have No. 1 market in U.S. adult performance running footwear across national and specialty retail channels is its track record of focusing on performance

That’s a hard-won reputation for a 111-year-old company that once manufactured shoes for a broad range of sports, went bankrupt, overext, reinvented itself and became part of the Berkshire family in 2006 after getting acquired by Fruit of the Loom

Buffett made it a standalone unit in 2012

Now, Sheridan is trying to expand into new while catering to his core customer and contending with tariffs. “We’re so fortunate

We’re owned by who I would call the GOAT of capitalism,” he says, recalling the Oracle of Omaha’s message when he came to Brooks headquarters in 2014: “He said, ‘Berkshire focuses on the long term, and your jobs are simply this, to make sure the brand is stronger at the end of the year than it was at the beginning.’” And from the late Charlie Munger, Sheridan says learned the importance of “organizations avoiding the ABCs: arrogance, bureaucracy, and complacency.” As for his own workout routine, Sheridan is more of a yoga aficionado than a hardcore runner—but he does put those Brooks shoes to use. “I joke that I think I was genetically engineered to plow a field and sit on a bar stool, but I love running

It’s a part of my life.”(Here’s a transcript of the episode

You can also listen to our conversation on Apple or Spotify.) Top newsIt’s Tariff Eve!President Trump’s August 1 deadline for reaching a trade deal with the U.S. is tomorrow, and most countries don’t have a deal

Only eight countries have signed pacts

South Korea is the most recent to reach an agreement—15%, plus $350 billion in unspecified investments “selected by myself, as President” and another $100 billion in fossil fuel purchases.Trump is angry with India and RussiaIndia will receive a 25% tariff because “they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” the president said

He also said he would impose more sanctions on Russia if Putin did not stop his war on Ukraine in 10 days.Not happy with Brazil, eitherBrazil will get a 50% tariff because Trump is unhappy that the government there is secuting its former president, Jair Bolsanaro, for attempting to stage a coup after he lost an election

There will be further duties on copper and an end to the “de minimis” rule that allowed tariff-free imports on goods worth less than $800.Tariffs up, prices upWe’re starting to see consumer price rises driven by the tariffs, CEOs say

Chief executives at Adidas, P&G, Walmart, Ralph Lauren, Mattel, Subaru, and Nike have all warned that the increased cost of tariffs will soon show up on price .Ford: Tariffs cost us $2 billionfit at the company was cut by $800 million because of tariff costs, the company said

Ford s declined by 3% on the news, in aftermarket trading.Gloom at Mercedes-Benz and PorscheBoth companies slashed their earnings forecasts for the rest of the year after fits were hurt by tariff costs and lessened demand.Microsoft market cap exceeds $4 trillionFor the quarter June 30, 2025, Microsoft reported revenue of $76.4 billion, an 18% jump over the previous year

Net income climbed even more swiftly, up 24% to $27.2 billion.Accenture CEO Julie Sweet’s bold AI playbook CEO Julie Sweet has led consulting giant Accenture with conviction through global trade uncertainty and geopolitical conflict

Now, she’s positioning the company to fit from AI when others thought the nology would threaten the industry entirely

Fed leaves rates unchangedThe Federal Reserve kept rates steady during a meeting on Wednesday, though two Fed governors dissented from the decision for the first time in 30 years

Chairman Jerome Powell noted that the institution needs more information the effects of tariffs before lowering rates.Marc Benioff talks AISalesforce CEO Marc Benioff claims that AI agents now do 30% to 50% of the work within the company, but he doesn’t think the nology will displace a large amount of white collar workers

During a recent interview with Fortune, Benioff explains why.Jamie Dimon is speaking to Trump againThey have met twice in the ast two months, the WSJ says

They discussed interest rates and the housing market

The pair haven’t met in years and have a history of publicly insulting each other.Bessent airs notion of privatizing Social SecurityTreasury Secretary Scott Bessent said the White House was committed to tecting Social Security hours after he said in an interview that a new children’s savings gram President Donald Trump signed into law “is a back door for privatizing Social Security.”The S&P 500 futures were up 1% this morning, premarket, after the index closed down 0.12% yesterday

STOXX Europe 600 was up 0.14% in early trading

The U.K.’s FTSE 100 was up 0.33% in early trading

Japan’s Nikkei 225 was up 1.02%

China’s CSI 300 Index was down 1.82%

The South Korea KOSPI was down 0.28%

India’s Nifty 50 was up 0.08%

Bitcoin is still above $118K.From the analystsWedbush on Apple’s AI strategy: “The ‘elephant in the room’ continues to be Apple's AI growth strategy which right now is invisible while the rest of the world is laser focused on monetizing the biggest theme in 40 years....the AI Revolution

Apple's WWDC event in June felt an episode out of Back to the Future with barely no mention of AI,” per Daniel Ives et al.Apollo Management on stablecoins and Treasuries: “Almost 90% of stablecoin use is crypto trading, which will ly continue to grow

The big breakthrough will be if US dollar stablecoins will be used for retail payments globally

If the US dollar stablecoin market grows into the trillions, it will significantly grow demand for US T-bills [which back stablecoins 1:1]

There are financial stability risks because money will be moved around quickly if depositors lose confidence in a stablecoin issuer,” per Torsten Sløk.Parthenon-EY on GDP growth: “Real GDP advanced at a solid 3.0% annualized pace in Q2 2025, partially unwinding the 0.5% contraction recorded in Q1

However, this apparent strength is an economic mirage reflecting a sharp pullback in imports after the tariff-driven front-loading of demand in Q1

Stripping out the noise, the US economy expanded at a muted 1.2% average pace in the first half of the year, revealing soft underlying private sector demand,” per Gregory Daco.Around the watercoolerRobinhood ‘hulk smashes’ earnings as push to diversify revenue pays off by Ben WeissEventbrite’s CEO walked away from Hollywood to build a $225 million ticketing company with her own money: ‘If it’s a disaster, we’ll just be broke’ by Emma BurleighDan Ives slams Apple’s showcase as ‘an episode out of ‘Back to the Future” and turns up the heat on Tim Cook over ‘elephant in the room’ by Dan IvesAI and robots can help the world grow more food—even if they’re still not quite as good as a human farmer by Cecilia HultCEO Daily is compiled and edited by Joey Abrams and Jim Edwards.This is the web version of CEO Daily, a of must-read global insights from CEOs and industry leaders. to get it dered free to your inbox.