Inside CEO Warren Buffett’s Farewell Letter to Shareholders

Berkshire Hathaway CEO Warren Buffet has said he will be “going quiet” in his final shareholder letter after 60 years at the helm.

The 95-year-old billionaire, who is also the world’s 10th richest person, stunned Wall Street when he announced earlier in the year that he would be stepping down as CEO at the end of 2025, handing over to Greg Abel.

Warren says that he won’t contribute Berkshire’s famous annual letter anymore but writes that he will continue to talk to shareholders (and his children) via an annual Thanksgiving message.

As his days as CEO draw to a close, shares in the US$1tn company have dipped over the past six months.

However, Warren says that Greg has “more than met” his expectations he had for him when he “first thought he should be Berkshire’s next CEO”.

Faith in the next CEO

Commending the next CEO, Warren says that Greg has a great understanding of the business and personnel “far better” than he himself has now.

“He is a very fast learner about matters many CEOs don’t even consider,” he adds. “I can’t think of a CEO, a management consultant, an academic, a member of government - you name it - that I would select over Greg to handle your savings and mine.”

For example, Warren shares that the next Chief knows “far more about the upside potential and the dangers of our P/C insurance business” than many long-time execs.

This is part of the Warren's long-term goal for Berkshire to have only five or six CEOs over the next century, noting to avoid those “whose goal is to retire at 65”.

At the time of the announcement in May, Greg told shareholders that he would “maintain the reputation of Berkshire” as its next leader.

“It’s really the investment philosophy and how Warren and the team have allocated capital for the past 60 years,” he added. “Really, it will not change. And it’s the approach we’ll take as we go forward.”

Reflecting on his time as CEO

In the letter, Warren reflected on his upbringing and path to CEO, noting that he feels incredibly lucky “to have had the good fortune to make lifelong friends, to meet both of my wives” and “to receive a great start in education at public schools”.

He said he believes that himself and Berkshire did better because of being based in Omaha: “The centre of the US was a very good place to be born, to raise a family and to build a business.”

Warren says that his children, now over retirement age themselves at 72, 70 and 67, have the “maturity, brains, energy and instinct to disburse a large fortune”.

He added that they are also 100% behind Greg, along with the rest of the Berkshire Directors.

Final thoughts in the letter

As a self-serving observation, Warren shared that he feels much better about the second half of his life than the first half.

He shares: “My advice: Don’t beat yourself up over past mistakes - learn a little from them and move on.

“It’s never too late to improve. Get the right heroes and copy them.”

The 95-year-old admits to being thoughtless countless times and making many mistakes. He says: “Kindness is costless but is also priceless.

“Keep in mind that the cleaning lady is as much a human being as the Chairman.”