Renowned American investor Warren Buffett stated that he only started feeling old at the age of 90 and believes that true talent is rare in any field.
Warren Buffett has been unable to determine exactly when he will hand over the leadership of Berkshire Hathaway to his successor Greg Abel. It was reported by The Wall Street Journal on Wednesday, May 14th that Buffett noticed the increasing difference in work pace between himself and Abel, who energetically worked long hours every day.
“There’s no magical moment,” the 94-year-old Buffett told The Wall Street Journal, “How do you know when you’re going to get old?”
Shareholders of Berkshire Hathaway have long been waiting to see who and when will succeed Buffett. This prominent figure in the American business and financial world admitted that it wasn’t until nearing his 90th birthday that he started experiencing something most people accept early on – his aging.
“For some reason, it just hit me around 90 that I was aging,” he said, “Once you start feeling old, it’s pretty irreversible.”
Buffett began noticing occasional balance issues when walking and sometimes struggling to recall a person’s name. On May 3rd, during the Q&A session at Berkshire Hathaway’s annual meeting, he surprised the investment community by announcing his plan to step down as CEO in December and hand over the position to Abel.
The move shocked the industry. When Buffett made the announcement, the audience at the Omaha Sports Arena fell silent, then erupted in enthusiastic applause. Even Abel, who was on stage with him at the time, was not aware of this news beforehand.
Abel, 62, joined Berkshire Hathaway in 1999 when the company invested in the Iowa utility company MidAmerican Energy. Due to his outstanding performance in expanding the company’s energy business, Abel was promoted to vice chairman in 2018, overseeing all non-insurance operations of Berkshire Hathaway. By 2021, he was chosen by Buffett to succeed him as CEO.
“Truly great talent is very rare,” Buffett told The Wall Street Journal, “Rare in business, rare in capital allocation, rare in almost any human endeavor you can name.”
In the spring of 1965, Buffett took over Berkshire Hathaway at the age of 34 when it was just a struggling New England textile manufacturer. Over the years, he transformed it into a massive business empire, including insurance companies, utilities, railways, and a significant stake in Apple and American Express. Currently, Berkshire Hathaway employs nearly 400,000 people.
Speaking of Abel, Buffett noted his high energy and their differing work ethics. He emphasized that while they both work 10-hour days, Abel’s efficiency surpasses his, and the disparity between them is becoming more pronounced.
Buffett admitted that he never thought he would serve as CEO of Berkshire Hathaway for life. “As long as I feel I’m more useful than anyone else, I’ll keep serving as CEO,” he said, “But you know, it’s surprising that no one has stepped in for so long.”
Despite stepping down as CEO soon, Buffett mentioned his intention to continue working. “I’m in good health and feel fine every day,” he said, “I’m in the office now, working with people I like and who like me. We enjoy each other’s company.”
Acknowledging some decline in abilities with age, Buffett still maintains what may be his most cherished and rarest skill as an investor. “When making decisions now, I don’t feel any difficulty, just like 20, 40, or 60 years ago,” he said. “If there’s panic in the market, I’ll be useful, because when stocks fall or everyone panics, I won’t be afraid. It has nothing to do with age, really.”
Buffett will continue to serve as chairman of Berkshire Hathaway and has not set a specific term limit for his role.