In the high-stakes world of athletic footwear, where brands battle for consumer loyalty amid shifting trends and economic pressures, one piece of advice from investing legend Warren Buffett has become a guiding principle for Brooks Running’s chief executive. Dan Sheridan, who has helmed the company since taking over as CEO more than a year ago, recently revealed in an interview that Buffett’s counsel boils down to a simple yet profound directive: Ensure the brand emerges stronger each year than it started.

Sheridan, speaking on the Leadership Next podcast hosted by Fortune, elaborated on how this mindset shapes Brooks’ strategy under Berkshire Hathaway’s ownership. Acquired by Buffett’s conglomerate in 2006 after a stint under Fruit of the Loom, Brooks has grown into a $1.6 billion powerhouse focused on serious runners, but it’s now pushing into casual wear and global markets to counter rivals like Hoka and On.

Buffett’s Enduring Influence on Brand Stewardship

The Oracle of Omaha, as Buffett is often called, doesn’t micromanage his subsidiaries, but his philosophy resonates deeply with Sheridan. “We’re owned by who I would call the G.O.A.T. of capitalism: Warren Buffett,” Sheridan told Fortune in a separate piece, highlighting the autonomy Berkshire provides. This hands-off approach allows Brooks to innovate without quarterly earnings pressures, a rarity in an industry dominated by public companies fixated on short-term gains.

Yet, Buffett’s brand-strength mandate isn’t mere platitude. For Brooks, it translates to meticulous operational agility, as Sheridan explained. The company, primarily North America-focused, is expanding apparel lines and partnering with global retailers, which introduces complexities in supply chains and distribution. “We want to assort our brand wherever the greatest retailers are that are focused on running,” Sheridan noted, per the Fortune report from June, emphasizing the need to build systems that integrate seamlessly with partners worldwide.

Navigating Competition and Consumer Shifts

Industry insiders point to Brooks’ recession-resistant model as a Buffett-inspired strength. In a May interview on Yahoo Finance, Sheridan discussed how running’s popularity—fueled by a post-pandemic wellness boom—insulates the brand from economic downturns. Posts on X, formerly Twitter, echo this sentiment, with users like business strategists praising Buffett’s emphasis on durable competitive advantages, aligning with Brooks’ focus on high-performance gear over fleeting trends.

Still, challenges loom. Competitors like New Balance have broader casual offerings, while upstarts Hoka and On are eroding market share with innovative cushioning tech. Sheridan’s team is responding by leveraging consumer “permission” to expand, as he put it, into apparel and international sales, aiming for balanced growth without diluting the core running identity that Buffett’s advice safeguards.

Lessons for Broader Business Strategy

Buffett’s wisdom extends beyond Brooks, offering a blueprint for executives in volatile sectors. At the 2025 Berkshire Hathaway annual meeting, covered live by CNBC, the investor reiterated themes of long-term value creation, which Sheridan embodies by prioritizing brand health over aggressive expansion. X discussions, including threads on strategy models like Hambrick and Fredrickson, underscore how such advice fosters resilience.

For Sheridan, who has spent over 25 years at Brooks, this means daily decisions that fortify the brand’s equity. As he shared in the latest Fortune article published just hours ago, the goal is incremental strengthening—measuring success not in quarterly spikes but in enduring consumer trust. In an era of rapid disruption, this Buffett-backed strategy positions Brooks not just to compete, but to lead.

The Path Ahead for Athletic Brands

Looking to 2025 and beyond, Brooks’ trajectory under Sheridan’s leadership illustrates the power of patient capital. While peers grapple with tariffs and supply chain woes—topics Sheridan addressed on Yahoo Finance in June—the company invests in agility, from eco-friendly materials to digital retail integrations. X users, including influencers like Gary Vaynerchuk, highlight the missed opportunities in social commerce that Brooks is now seizing, aligning with Buffett’s value discipline.

Ultimately, Sheridan’s embrace of Buffett’s advice serves as a case study for industry leaders: In a crowded market, true strength lies in consistent brand elevation, ensuring longevity over ephemeral wins. As Brooks strides forward, it exemplifies how timeless principles can outpace even the fastest competitors.