Warren Buffett, the 95-year-old legendary investor who turned a struggling textile mill into a $1.07 trillion conglomerate, has formally set the stage for Berkshire Hathaway’s next chapter. In what is likely to be his final letter to shareholders before stepping down as chief executive, Buffett endorsed his long-time lieutenant Greg Abel as his successor, signalling a smooth transition at the top of one of the world’s most closely watched companies.
The announcement marks the end of an era for Wall Street and for investors across the world, including India, where Buffett’s value investing principles have shaped the thinking of generations of market participants. Known for his plain-spoken wisdom, Buffett’s decisions at Berkshire have influenced how Indian institutions and retail investors assess long-term businesses and capital allocation.
In his letter released on Monday, Buffett said he would be “going quiet” as Abel takes over the reins at year-end. “As the British would say, I’m going quiet,” he wrote, noting that Abel, 63, will now lead Berkshire’s annual meetings and write its famous shareholder letters. Buffett will remain chairman and continue communicating occasionally.
Despite his age, Buffett said he still felt “generally good”, working five days a week from the Omaha headquarters. But he made clear that the day-to-day leadership now rests with Abel, who has been overseeing Berkshire’s non-insurance operations since 2018 and was publicly named as the successor in 2021.
“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,” Buffett wrote. “He is a great manager, a tireless worker and an honest communicator.”
Buffett downplayed recent declines in Berkshire’s share price, which has fallen 8 percent since he announced his decision to step down, while the S&P 500 has climbed about 20 percent. Analysts say the “Buffett premium” that investors once built into Berkshire shares has eroded slightly, but Buffett himself assured shareholders not to “despair”.
“America will come back and so will Berkshire shares,” he said, adding that the conglomerate’s businesses still have “moderately better-than-average prospects”. He admitted that Berkshire’s enormous size now limits its ability to deliver outsized returns.
“Our size takes its toll,” he said. “Because of Berkshire’s size and because of market levels, ideas are few – but not zero.”
Berkshire today controls nearly 200 businesses, from Geico and BNSF Railway to Dairy Queen, Fruit of the Loom, and See’s Candies. It holds major investments in Apple, American Express and other US giants, ending September with $283.2 billion in equities and $381.7 billion in cash.
In the same letter, Buffett said he had donated $1.3 billion worth of Berkshire shares to family foundations run by his children—Susie, Howard and Peter—accelerating his philanthropic commitments. Since 2006, Buffett has given away more than half his Berkshire shares, largely to the Bill & Melinda Gates Foundation, though future donations to the Gates charity will cease after his death.
His remaining wealth will flow into a charitable trust managed by his children, with instructions to give it away within about a decade. Buffett, currently worth around $148.2 billion according to Forbes, said this redistribution does not reflect any loss of faith in Berkshire’s prospects.
Greg Abel, a Canadian by origin and a former energy executive, has earned the trust of Berkshire’s board and its business heads. Buffett said Abel “understands many Berkshire businesses far better than I do” and predicted shareholders would quickly gain confidence in him.
“My children are already 100 percent behind Greg, as are the Berkshire directors,” Buffett wrote.
For investors globally, and especially in India, where Berkshire’s holdings and Buffett’s investment philosophy are closely followed, this transition is symbolic of the maturing of one of capitalism’s most successful experiments. The “Oracle of Omaha” may be stepping back, but his approach to disciplined investing, patient capital and shareholder integrity will continue to influence markets for decades to come.