In a significant turn of events, Warren Buffett, the revered CEO of Berkshire Hathaway, announced on Saturday his intention to step down later this year, marking the end of an illustrious career that has spanned decades. Known affectionately as “the Oracle of Omaha,” Buffett has been a beacon of wisdom in the investment community, often seen with his beloved red can of Coca-Cola at his side. At 94 years old, Buffett leaves behind a legacy of remarkable financial acumen and success.
Buffett transformed Berkshire Hathaway from a struggling manufacturer of suit linings in the 1960s into one of the world’s most formidable economic enterprises, boasting a market capitalization of $1 trillion. This milestone made Berkshire Hathaway the first U.S. non-tech company to reach the coveted $1 trillion mark. Throughout his tenure, Buffett became known for making savvy, long-term investments in a diverse array of predominantly American companies, always advocating for the principles of patience and emotionless decision-making.
Under his leadership, Berkshire Hathaway acquired significant stakes in renowned consumer brands such as Domino’s Pizza, Coca-Cola, and Kraft Heinz, alongside investments in insurance, railways, and oil companies. Buffett and his team consistently avoided investing trends and maintained a healthy skepticism towards corporate claims that seemed overly optimistic.
Buffett’s influence extended beyond mere investment strategies; he transformed Berkshire Hathaway’s annual shareholder meetings into a cultural phenomenon, often referred to as “Woodstock for capitalists.” These gatherings attracted tens of thousands of investors to Omaha, where Buffett’s insightful commentary provided attendees with invaluable nuggets of investing wisdom. His annual letters to shareholders became highly anticipated documents, packed with guidance and thoughtful reflections.
During Berkshire’s 60th annual meeting, Buffett revealed that he will recommend longtime executive Greg Abel to succeed him as CEO at the end of 2025. Abel, who has been with Berkshire for over two decades and currently oversees its Wall Street investments, has long been viewed as Buffett’s potential successor. The timing of the announcement took many by surprise, including most board members, who were unaware of Buffett’s plans for retirement.
Despite stepping down, Buffett plans to retain his substantial stake in Berkshire Hathaway and intends to remain an informal presence within the company. “I would still hang around and conceivably be useful in a few cases, but the final word would be what Greg said,” Buffett stated, emphasizing his commitment to supporting Abel’s leadership.
Buffett’s retirement comes two years after the passing of his long-time business partner and Berkshire vice-chair, Charlie Munger, who died in 2023 at the age of 99. Berkshire director Ron Olson expressed hope that Buffett would continue to play an advisory role similar to that of Munger's influence within the company. “I am very anxious to see Warren become the Charlie Munger for Greg Abel,” Olson remarked.
Buffett’s legacy also includes his past involvement with The Washington Post Co., where he served on the board until 2011, before the newspaper was acquired by billionaire Jeff Bezos in 2013. Former Post executive Don Graham fondly recalled Buffett’s early interactions with his mother, Katharine Graham, highlighting the profound impact Buffett had on her success as a CEO.
Warren Buffett’s journey to wealth is remarkable not only for its success but also for its contrast to the typical narratives of the ultra-rich. He famously resides in the same five-bedroom home in Omaha, which he purchased in 1958 for $31,500. Despite the wealth generated from his investments, Buffett has maintained a modest lifestyle, often starting his day with breakfast from McDonald’s and enjoying several cans of Coca-Cola daily.
Although he eventually embraced private jet travel with Berkshire Hathaway’s acquisition of NetJets, Buffett famously delayed purchasing his first computer until 1994, at the suggestion of Microsoft co-founder Bill Gates. His initial reluctance towards tech stocks has changed over the years, with significant investments in companies like Apple, which constituted over 20% of Berkshire’s holdings by late 2024.
A disciple of the value investing philosophy espoused by Benjamin Graham, Buffett has always focused on identifying undervalued companies overlooked by the market. He has been a vocal critic of financial engineering and the practice of using “adjusted earnings” to paint a rosier picture of a company’s performance. His investment strategy has consistently emphasized the importance of sound fundamentals over speculative trends.
Buffett’s acumen became evident early on; he became a millionaire by 1962, and by 1985, his net worth was estimated at $1 billion by Forbes. Berkshire’s success in picking investment winners led many investors to view their decisions as indicators of confidence, particularly evident during the 2008 financial crisis when Buffett publicly invested $5 billion in Goldman Sachs to help stabilize the firm.
Throughout his career, Buffett has not shied away from expressing his opinions on economic policy. He has been critical of private equity deals and has spoken out against the high fees charged by hedge fund managers, emphasizing that it is often the managers who profit at the expense of their clients. In his 2016 shareholder letter, he cautioned against the risks associated with high-fee fund management.
Buffett has also advocated for tax reforms that ensure the wealthy pay their fair share, famously highlighting that he pays a lower tax rate than his secretary due to the nature of his income. His endorsement of the "Buffett rule" during the Obama administration called for a fairer tax system for high-income households.
At the recent meeting, Buffett addressed trade policies, arguing for the benefits of global trade while cautioning against the use of tariffs. While he refrained from directly criticizing former President Donald Trump, he emphasized that “trade should not be a weapon,” warning that trade wars could isolate the U.S. and lead to detrimental consequences for the economy.
Buffett’s insights reflect a deep understanding of the interconnectedness of global economies and the importance of maintaining healthy trade relationships. As he prepares to transition from his leadership role, the investment world watches closely, eager to see how Berkshire Hathaway will continue to evolve under new leadership.
