Warren Buffett, the 95-year-old billionaire, informed shareholders on Monday that he will retire from his CEO role at Berkshire Hathaway at the end of this year. Buffett, who has run the conglomerate since 1965, is one of the longest-serving bosses in business history.Â
He penned his final annual letter to shareholders this week-a ritual that began nearly 60 years ago. Readers around the world have used the letters as a way to learn about investing and business. Buffett said he’s “going quiet,” but he won’t disappear. He will continue to write an annual Thanksgiving message and will devote more time to giving away his enormous fortune to charity.
The End of an Era
Over the decades, Buffett’s letters to shareholders became famous. Investors everywhere study his words for hints about how he thinks about money and business. He built Berkshire Hathaway into a giant company, well over $1 trillion in value. The company owns many well-known businesses, ranging from Dairy Queen ice cream shops to GEICO insurance. Berkshire also holds huge chunks of stock in companies like Apple and Coca-Cola.
The new CEO will be Greg Abel, who will start next year. He is 63 years old now and currently serves as the vice chairman, handling the affairs of Berkshire’s non-insurance businesses. Back in 2021, he was chosen to be the new leader by Buffett. In his letter, Buffett praises Abel for doing even better than expected. Buffett added that he is very confident that Abel can do the job quite well.
Annual meetings have always been unique affairs at this company. The events are referred to as “Woodstock for capitalists,” as thousands of shareholders attend annually. Buffett spends his time walking around an exhibit floor, munching on Dairy Queen ice cream and wowing fans. His face is emblazoned on merchandise sold at the meetings. Security guards keep crowds back in an attempt to take photos with him and ask questions.
Giving Away His Fortune
He’s the owner of $149 billion worth of Berkshire Hathaway stock. He has said he intends to give virtually all of that away before he dies. On Monday, he converted 1,800 shares worth $1.35 billion into cheaper “B shares” and sent them to four family foundations. This, he wrote in a press release, is because he must quicken the pace of his giving. At age 95, Buffett isn’t counting on having many years left.
The billionaire has always said he wants his money to help others, not to leave huge amounts to his children. Instead, he wants it to be used by foundations for good causes while he’s alive to see it take place. By giving faster now, Buffett can make sure the money gets used the way he wants.
Buffett also spoke of his health in the letter. He said that he moves slowly these days and that he has trouble reading, but generally, he feels rather well for a man of his age. Still, he goes to the office five days a week to work with his team. That is impressive for a 95-year-old man.
What Made Buffett Special
They call Buffett the “Oracle of Omaha” because he seems to predict which investments will succeed. He grew up in Omaha, Nebraska, and still lives there today. But even though he is one of the richest people in the world, Buffett acts like a regular guy. He lives in the same house he bought decades ago. He eats at McDonald’s for breakfast. This down-to-earth style made him popular with ordinary Americans.
His strategy for investing lay in seeking good value. Buffett seeks out companies that sell for less than they are really worth, then waits patiently for the price to increase. Often, Berkshire Hathaway has billions of dollars in cash on hand, doing nothing but waiting for just the right deal. Few CEOs could keep such a strategy without their investors shouting about how wasteful it is with the money. People trust Buffett so much, though, that they let him do things his way.
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