Warren Buffett’s Final Day as CEO of Berkshire Hathaway
Today marks a significant transition as Warren Buffett steps down after 55 years of leading Berkshire Hathaway, the investment powerhouse.
At 95 years old, Buffett, also referred to as the “Oracle of Omaha” and the “billionaire next door,” is leaving behind a remarkable legacy. He transformed a struggling textile company into one of the world’s preeminent asset management firms.
Taking over is Greg Abel, 63, who has been relatively unknown outside of Berkshire’s energy division. Abel will take the lead, while Buffett will maintain his role as chairman.
Under Buffett’s stewardship, Berkshire has thrived, expertly navigating between Wall Street and Main Street. The company has investments spanning diverse sectors, from railroads to insurance, and even candy and ice cream.
Remarkably, Buffett has lived in the same house he purchased in the late 1950s for slightly over $30,000. Through his practical and straightforward investment advice, he not only became one of the wealthiest individuals globally but also pledged much of his wealth to philanthropy.
The Beginning of an Empire
Buffett’s journey began at the tender age of 12 when he invested $114.75 in City Services, a natural gas company. He had been saving up since he was six. “I became a capitalist, and it felt great,” he documented in a letter to shareholders in 2018.
By 16, his investments had ballooned to around $53,000, and he celebrated becoming a millionaire by 32. Currently, he’s ranked as the 10th richest person worldwide, with a staggering fortune of $150 billion, according to Bloomberg.
On Main Street, he championed the principle of investing in what you understand. Buffett famously suggested that both institutional and individual investors might benefit more from low-fee index funds rather than relying on many professional investors.
This philosophy has, over time, proven sound. However, Buffett and Berkshire have outperformed those benchmarks significantly.
Since 1964, when Buffett made Berkshire his primary investment platform, the company’s stock price has skyrocketed by over 5.5 million percent. In contrast, the S&P 500 has experienced a 39,000% return during the same timeframe, as per Bloomberg’s calculations. Today, Berkshire ranks as the 11th most valuable business globally, boasting a market cap exceeding $1 trillion.
Major companies under Berkshire’s umbrella include BNSF Railway, Geico, and recognizable brands such as See’s Candy, Benjamin Moore, and Dairy Queen.
Buffett collaborated closely with Charlie Munger, who participated in the annual shareholder meeting famously known as “Woodstock for Capitalists,” where the two would answer inquiries for several hours.
Munger, who passed away in 2023 at the age of 99, was frequently lauded by Buffett. In 2016, Buffett credited Munger with guiding him away from pursuing mediocre companies, emphasizing their mentorship bond.
A Late Embrace of Technology
Interestingly, Buffett’s focus on investing in familiar sectors meant he initially overlooked many tech companies. It wasn’t until 2016 that Berkshire heavily invested in technology, notably acquiring nearly 10 million shares of Apple.
Before this leap, Buffett was often questioned about tech giants, admitting in 2012 that he regretted not buying Apple earlier. He revealed that Steve Jobs once asked him directly about his company’s large cash reserves, leading to discussions about stock buybacks.
This conversation preceded Apple’s decision in 2012 to initiate dividends and buyback programs, ultimately benefiting Berkshire significantly.
Currently, Apple remains Berkshire’s most substantial investment, making up over 20% of Buffett’s assets, valued at more than $65 billion.
Other notable holdings in Berkshire’s portfolio include The Coca-Cola Company, cherished by Buffett, valued at approximately $28 billion, alongside other significant investments like American Express, Bank of America, and Chevron.
Buffett, a proponent of patience, typically refrains from frequent adjustments to his holdings. He describes this long-term approach as a “20-year Rip Van Winkle slumber,” as referenced in his 2023 letter.
Handling Crisis and Giving Back
Buffett’s influence has often been highlighted during crises, as businesses turn to him for assistance during challenging times.
During the 2008-2009 financial crisis, he provided crucial support to companies vital to the U.S. economy. Major firms like Goldman Sachs and AIG sought his intervention, as he became a lender of last resort.
This help proved lucrative for Berkshire, reportedly earning over $10 billion during the crisis by aiding various companies.
Buffett also inspired significant government action during this period, urging Treasury Secretary Henry Paulson to inject funds directly into banks to stabilize the system. Eventually, this intervention totaled around $205 billion, aiding major financial institutions and revitalizing the economy.
Despite his many successes, Buffett has encountered controversy. Berkshire’s long-held stake in Wells Fargo was sold off amid scandals surrounding the bank, which Buffett described as a “disaster.”
Additionally, his own company faces scrutiny over allegations of discrimination and risky lending practices related to its housing unit. A lawsuit was filed in 2025 against Berkshire’s mortgage lender, accusing it of steering buyers into unaffordable loans; however, the company has denied these accusations.
Through it all, Buffett’s philanthropic endeavors are likely the most enduring element of his legacy.
In 2010, he launched The Giving Pledge with fellow billionaires, including Bill Gates, committing to donate the majority of his wealth to charitable causes. Since then, over 250 other wealthy individuals have joined this initiative.
Just this past June, Buffett announced another round of contributions, pushing his charitable total beyond $60 billion.
His donations mainly support foundations managed by Bill Gates and his own family, addressing issues like food security and global health. He also established a charity in memory of his late wife, which offers scholarships to students in Nebraska.
“Money doesn’t do anything to me, it doesn’t do anything for me,” Buffett remarked in a 2013 interview. Yet, he added, “it could be very beneficial to people all over the world.”
