At 95 years old, warren buffett has confirmed his gradual retirement from key executive duties at investment conglomerate Berkshire Hathaway, which he led for more than 60 years. In a letter to shareholders published on Monday night, the businessman reported that he would no longer prepare annual reports and participate in traditional meetings with investors, marking a formal step in the transition process to his designated successor, Greg Abel.
In his message, Buffett reaffirmed his full confidence in Abel, who is currently vice president of non-insurance operations. Berkshire Hathaway. “Greg Abel will be my boss at the end of the year. He is a great manager, a tireless worker, and an honest communicator. All I can say is that I wish him a long and fruitful career.” The announcement confirms a succession plan that had been expected in recent years and comes after the passing of his historic partner and vice president, Charlie Munger.
Berkshire’s founder explained that he will retain a significant portion of the stock. Class A stock Until shareholders reached the same level of trust in Abel that he and Munger had shared for decades. “My children already fully support Mr. Greg, and so does the Berkshire Board of Directors,” he added.
Buffett explained that his departure does not mean a complete break with the company. Maintain communication with shareholders through annual message thanksgivingIn this way, we seek to maintain connection with an investor community that we consider to be ‘unique’ in our long-term vision and commitment to the Group’s philosophy.
Warren Buffett’s advice to investors
Warren Buffett’s enumeration of teachings concludes the chapter on one of the world’s most influential voices in the financial sector, after decades of transparency and analysis in his annual reports. without making any new public appearances or sending regular letters to investors.Employers focus on personal attention and support. See people trying their hand at driving Berkshire Hathaway from a discreet location.
In that sense, he defined a series of tips for investors.
- Don’t blame yourself for past mistakes. I learned at least a little from them and moved on. It’s never too late to improve.
- I chose the right heroes and followed their lead.
- Remember Alfred Nobel, who changed his mind after accidentally reading his own obituary. Don’t expect a journalistic mess. Decide what you want your obituary to be and live the life you deserve.
- Greatness is not achieved by amassing large amounts of money, name recognition, or power within government. When you help someone, you help the world. Kindness is not expensive, but it is also very valuable.
- The Golden Rule is a good guide to behavior (the Golden Rule is an ethical principle that exists in many religions and boils down to treating others as you would like to be treated).
- Remember that the cleaners are just as human as the CEO.
- Choose your heroes carefully and try to imitate them. You’ll never be perfect, but you can always be better.
- Don’t be discouraged if the stock price drops 50% or other important numbers drop. American stocks and Berkshire stocks will rebound.
- Company directors need to be vigilant and speak up when necessary, especially if a CEO or executive suffers from a disabling illness.
- Thank you America for the opportunity, even if the distribution of rewards is sometimes unfair.
- Don’t be afraid of failure or disappointment. they are inevitable. It simply seeks to improve upon what governments and private philanthropy typically accomplish.
Planned and gradual withdrawal
message of buffett It reflects a carefully designed transition. Over the past few years, the businessman has reduced his public exposure and delegated business responsibilities as he moved forward with succession planning. The move is being interpreted as the end of a phase in Berkshire Hathaway’s history, after losing Munger at age 95 and in 2023.
”Governance from the grave never worked I had no urge to do so,” Buffett wrote, alluding to the need to allow a new generation to take control of the conglomerate.
The businessman also reflected on moments from his personal life, including his childhood in Omaha and a medical episode that nearly took his life. Despite coming from a Protestant family, he tells how his family doctor took him to a Catholic hospital for surgery for appendicitis, which was a turning point in his life. “I was lucky to be born in Omaha.” he summarized.
In his letter, Buffett dedicated several passages that reminded him of his friendship. Charlie Munger He has shared strategic decisions for more than half a century. He also emphasized the role of his hometown in his personal and professional growth. “Nebraska is my home. The middle of the United States was the perfect place to be born, raise a family, and build a business. By sheer luck, I was born with one hell of a winning card,” he said.
The writing maintains the reflective tone that characterizes annual investor letters, combining personal anecdotes with management observations. However, the main focus is on institutional continuity. Berkshire Hathaway And the appearance of his successor.
Greg Abel and the Continuation of the Berkshire Philosophy
buffett He explained that Abel exceeded the expectations he had for him. “He knows a lot of our businesses and their employees better than I do. He’s quick to learn things that many business owners don’t even consider,” he said.
He also emphasized his understanding of the insurance sector, which is an important pillar of the holding company. “He understands both the opportunities and risks of the insurance business better than many industry veterans,” he wrote. According to Mr. Buffett, Berkshire If the current decentralized and prudent management model is maintained, we will only need “five or six CEOs in the next century.”
The message to shareholders was clear. The philosophy that has guided the conglomerate since its inception remains unchanged. ”Berkshire It will always be managed so that its existence remains the property of the United States. Our managers can be rich, but without ostentation or dynastic ambitions,” he pointed out.
Giving and managing family wealth
Buffett used the letter to report new developments in his giving program. He detailed the conversion of 1,800 Class A shares.n Allocate $2.7 million in Class B (equivalent to more than $1.3 billion) to four family foundations. “The time has come to accelerate giving throughout the lifespan,” he explained, emphasizing that children aged 72, 70 and 67 are already actively participating in the running of charities.
Speaking about his family’s legacy, he said: “My children don’t need to perform miracles or fear failure; they just need to do something a little better than what governments and private philanthropy typically achieve.” buffett Donating the majority of his fortune to charity before he dies is a goal he shares with celebrities such as Bill Gates.
In the final section of the letter, Mr. Buffett included his usual reflections on life and business. “I’m happy to say that the second half of my life feels better than the first,” he wrote, urging readers not to focus on past failures. “Learn from your mistakes and move forward. It’s never too late to improve. Choose your heroes wisely and copy them”.
The letter ends with a message of gratitude and optimism: “I hope you all have a happy Thanksgiving. Yes, even if you are a fool. It’s never too late to change. ” One of Buffett’s last lines summed up his worldview with the following observation: When you help someone, you help the world. Kindness costs nothing, but it is very valuable. ”
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