On Monday, November 10th, legendary American investor Warren Buffett, aged 95, announced in his annual letter to shareholders that he will maintain a low profile after stepping down as the Chief Executive Officer (CEO) of Berkshire Hathaway by the end of this year.
In May of this year, Buffett unexpectedly revealed during the annual shareholders’ meeting that he would retire as the CEO by the end of the year and endorsed Greg Abel, Vice Chairman of non-insurance operations, to take over the CEO position starting January 1, 2026. However, Buffett will not completely disengage from the company as he will continue to serve as the chairman of the board.
The shareholder letter released on Monday was Buffett’s first significant statement since announcing his CEO succession plan, signaling the end of his six-decade-long leadership at Berkshire Hathaway. During this time, he has not only become a household name but also one of the most successful investors in history.
“I will no longer write Berkshire’s annual reports or speak endlessly at the annual meeting,” he said in the letter to shareholders on Monday, “I will ‘go quiet,’ as the British say.”
However, he mentioned that he will continue to release annual Thanksgiving messages and “accelerate” his charitable work by donating his $149 billion worth of Berkshire stock holdings.
In the shareholder letter, Buffett stated that he converted 1,800 Class A shares (valued at $1.35 billion) into 2.7 million Class B shares at a lower price and delivered them to four family foundations.
Buffett clarified that although he is accelerating the donation of his lifetime assets to his children’s foundations, it “in no way reflects any change in my view of Berkshire’s prospects.”
“I want to retain a significant amount of A shares until Berkshire’s shareholders, like Charlie and I, have confidence in Gregg (Abel),” Buffett wrote. The Charlie he referred to is Berkshire’s longtime Vice Chairman and his business partner Charlie Munger, who passed away two years ago.
“This level of confidence won’t take long to establish. My kids are 100% behind Gregg, as are Berkshire directors,” he said.
In the shareholder letter released on Monday, Buffett once again praised his successor. He wrote, “Gregg Abel has more than exceeded the high expectations I had for him when I originally thought he should be Berkshire’s next CEO.”
Buffett’s shareholder letters have always been considered a must-read for investors, containing unique insights into Berkshire Hathaway’s performance, practical wisdom, and reflections on business and life. In his latest eight-page letter, Buffett reminisced about his childhood in Omaha, Nebraska, the people who deeply influenced his career, and the values that guided him forward.
The billionaire also provided an update on his health to shareholders. He said, “To my surprise, overall, I feel pretty good. Though I move slower and reading has gotten tougher, I am in the office five days a week, working with a great group of people.”
Buffett expressed high yet realistic expectations for Berkshire Hathaway’s continued prosperity after he steps down as CEO. The company’s stock price has risen by over 10% this year, reaching a market value of $1 trillion.