UPDATE: Warren Buffett, the legendary CEO of Berkshire Hathaway, has released his final letter to shareholders on October 30, 2023. This momentous letter marks a significant farewell as Buffett prepares to step down before the new year, leaving behind a legacy as one of the world’s most respected investors.
Buffett’s followers have reacted with a mix of sadness, admiration, and gratitude. The 95-year-old investor has transformed Berkshire Hathaway from a failing textile mill into a colossal $1 trillion conglomerate over the last six decades, acquiring major businesses like Geico and Dairy Queen, alongside significant stakes in corporate giants including Coca-Cola and American Express.
In his letter, Buffett expressed his intention to continue writing a Thanksgiving letter as Berkshire’s chairman. He reflected on his extraordinary journey, acknowledging the role of luck and kindness in his success. Furthermore, he reassured shareholders that Greg Abel is a capable successor, emphasizing his confidence in the future of the company even as he accelerates the transfer of his $150 billion fortune to family foundations.
Nine of Buffett’s most devoted followers shared their insights with Business Insider, revealing how his final letter resonates deeply within the investment community:
“It’s his valedictory address, attributing his accomplishments to being very lucky to be born in America,” said David Kass, a finance professor at the University of Maryland.
“It’s Buffett’s farewell to the microphone, not to the mission — he’s passing the pen, not the philosophy,” noted Lawrence Cunningham, author and director at the University of Delaware’s Weinberg Center.
Chris Bloomstran, president of Semper Augustus Investments, praised the letter as a “wonderfully reflective message on gratitude, philanthropy, and kindness.” He stressed Buffett’s affirmation of Abel as the ideal successor, instilling confidence in shareholders about Berkshire’s future.
As Buffett steps back, John Longo, a finance professor and author, highlighted the opportunity this gives Abel and the Berkshire management team to lead without the shadow of Buffett’s legacy. Longo believes Buffett will still serve as a crucial advisor.
Paul Lountzis, president of Lountzis Asset Management, expressed his sorrow about Buffett’s departure, emphasizing how much of Buffett’s happiness stemmed from his relationships in Omaha, where his journey began.
Buffett’s impact transcends financial success. Brian Gongol, a long-time shareholder, remarked, “There’s a tremendous degree of custodial care implied throughout the letter. Buffett is confident in Abel and wants to shield him.” This sentiment resonates strongly as Buffett reassures that Berkshire will remain a valuable asset to the United States.
As Buffett accelerates his giving, Adam Schwartz, chief investor at Black Bear Value Partners, remarked on the national treasure Buffett has been, expressing the community’s longing for more frequent updates and public addresses.
Adam Mead, an investment chief, speculated on Buffett’s longevity and potential to write again, suggesting there’s a 50/50 chance he might pen another letter next year, though he acknowledged the swift passage of time that comes with age.
This final letter encapsulates Buffett’s legacy and philosophy, leaving a profound impact on shareholders and followers. As the world watches this significant transition, the focus now shifts to how Greg Abel and the Berkshire management team will carry forward the values instilled by Buffett.
As we reflect on Buffett’s remarkable journey, his teachings on humility, kindness, and the importance of relationships resonate more than ever. The investment community eagerly anticipates how this new chapter will unfold for Berkshire Hathaway.