Warren Buffett retires, his lessons don't–What would he buy in India today?

2025 marked the end of an era for Berkshire Hathaway. Investing legend Warren Buffett retired from his role as CEO on 31 December 2025. Even as he steps back from professional responsibilities at the ripe age of ninety-five, his investing mantras are likely to endure.

One of the most influential proponents of long-term value investing, Buffett popularised the idea of being greedy when others are fearful, and fearful when others are greedy. At its core, this philosophy urges investors to step away from the herd and assess businesses and management teams for their “true” worth.

While short-term headwinds can spook markets, investors are better served by staying focused on long-term fundamentals and management quality. In industries with favourable prospects, strong governance, responsible leadership, and a proven track record of growth and profitability can create multibaggers. Temporary troubles often sweeten the deal by pulling stock prices down to attractive valuations.

Let us look at three listed Indian businesses that appear well placed on Buffett’s yardstick.

HDFC Bank – Scale slowed it down, but temporarily?

India’s banking giant, HDFC Bank, has been navigating a challenging phase since its merger with HDFC Ltd in 2023. As the parent housing finance company relied on high-cost borrowings rather than deposits, the bank’s cost of funds rose sharply post the merger. The absorption of low-yielding home loans further compressed net interest margins. Margins were also weighed down as regulatory requirements, such as maintaining low-yield CRR and SLR assets, were applied to HDFC Ltd’s loan book.

Strategic benefits, however, remain intact. The merged entity is now a full-service financial conglomerate with a vast mortgage customer base. This creates significant cross-selling opportunities and expands banking distribution, aided by the former non-banking financial company’s (NBFC) strong rural reach, even as corporate overheads decline.

But the benefits have taken longer to accrue than initially anticipated, because apart from the usual integration efforts required in a merger, strategic focus has shifted towards deposit-mobilization to bring down the overall cost of funds. This has held back credit growth. Return on equity and return on assets have dipped. The stock has underperformed the private bank index since 1 July 2023, when the merger took effect.

That said, for long-term investors, this is an opportunity rather than a challenge. The mega bank now trades at 2.7x its book value, a significant discount to the 3.5x P/BV right before the merger. More importantly, its long-term prospects remain promising, even as short-term merger-induced disappointments have scared away the herd.

Growth has started picking up pace. With one of the cleanest books in the industry, a long track-record of robust governance and growth, and benefits from the merger expected along the way, HDFC is likely to fit Buffett’s bill as a fundamentally strong business going through surface-level pain that has brought the stock down to attractive valuations.

Hero Motocorp – Industry winds turning?

Think two-wheelers, and Hero MotoCorp is among the first names that come to mind. The company dominates entry-level mobility, commanding a 29% market share in FY25. Yet the market itself has contracted, with FY25 wholesale volumes still 6% below pre-pandemic levels. While the post-pandemic YOLO phase fuelled a surge in premium demand, the other side of the K-shaped recovery—strained rural demand amid erratic weather and elevated inflation—hurt entry-level mobility.

Result? Entry-level mobility sales suffered, and Hero has lost ground to premium players like Honda. While Hero still leads the domestic two-wheeler market, its market-share has tanked to the lowest in 25 years. The stock has underperformed the broader auto index over the last five years.

That said, industry tailwinds appear to be shifting. Aided by inflation which has remained well within the RBI’s mandated range, and underpinned by healthy monsoons, rural demand is recovering. Hero’s recently launched variants of Glamour and Xtreme125R have enabled a pickup in volume growth in H1FY26.

The hope is to eventually reclaim lost ground in the entry-level segment. It has also made huge strides in electric vehicles. It holds stake in Ather Energy, which has been quickly gaining ground. Hero’s Vida VX2 has also been well received, propelling its share to 12% of the electric two-wheeler market. It hopes to eventually claim a leadership position in the EV space, with the near-term target set at 14-15% of the market by FY26.

Exports can also propel growth, thanks to Hero’s premium-positioning in the segment. Exports contributed 8% to total volumes, which is expected to touch 10% by the end of this fiscal. As a bulk of the expansion has been funded by internal accruals, Hero’s debt position has also been maintained at a healthy level. Hopes of a turnaround, along with a cash-rich book, make for the perfect ingredients in Buffett’s books.

Pidilite Industries

Despite Fevicol’s status as a household name and Pidilite’s near-monopoly in adhesives, the business has faced industry-wide headwinds. Competition from unorganized players, a slowdown in construction following softer government capex, and muted consumption demand have weighed on growth and realizations.

The stock has remained flat over the past one year. It is now trading at 62x its earnings, less than half the 135x P/E seen at the end of last year. Apart from the now palatable valuations, fundamentals also promise potential.

Pidilite’s margins have been supported by benign raw material prices as well as the pricing power that comes with being the market leader. An asset-light model and consistent debt discipline have also helped contain volatility in a challenging environment.

More importantly, realizations have improved in recent quarters. Backed by spillover effects from GST 2.0, revival in rural demand, and enhanced demand from the construction sector post monetary easing, the gap between volume growth and value growth has narrowed down. While more volatility cannot be ruled out, Pidilite’s robust fundamentals, a consumer-facing industry that is gearing up for a turnaround, and attractive valuations have all the makings of a Buffett pick.

Summing it up

While Buffett’s retirement marks the end of an era, his principles feel especially relevant today—when narratives often move faster than fundamentals, and investor patience is in short supply.

The common thread across HDFC Bank, Hero MotoCorp, and Pidilite Industries is that each faces short-term challenges but is underpinned by strong franchises, sound governance, and balance sheets built to withstand cycles. Their valuations reflect caution, not collapse, and make for great Buffett-style picks.

For more such analysis, read Profit Pulse.

History suggests that markets reward those willing to look beyond the noise. Buffett’s enduring lesson was simple: ignore the next quarter and trust good businesses to compound over time. That lesson, much like his legacy, is not retiring anytime soon.

Ananya Roy is the founder of Credibull Capital, a SEBI-registered investment adviser. X: @ananyaroycfa

Disclosure: The author holds shares of some of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.