Warren Buffett will resign as Berkshire CEO in 60 years
Warren Buffett said he would resign as CEO of Berkshire Hathaway at the end of the year, finishing his 60-year run, where he became an influential and iconic part of the US economy.
Reuters
The Omaha oracles give him the last words of wisdom.
At the age of 94, investment icon Warren Buffett surprised investors, and announced on Saturday that he would step down as CEO by the end of the year at the final moments of Berkshire Hathaway’s 60th Annual Meeting. He will remain chairman of the company, but Vice-Chair Greg Abel will take over the CEO post from January 1, 2026.
What is Buffett’s legacy?
Buffett took over Berkshire in 1965 with a value approach to investment. Value investments include focusing on identifying and purchasing stocks that are below perceived essential or fair value. He then launched investment partnerships with various business ventures.
Since he took over Berkshire, the company’s per share value has deteriorated at a rate of 19.9%, nearly twice the average annual average annual on the Broad S&P 500, resulting in a return of 5,502,284% of shareholders through 2024, according to the company’s annual report. This is comparable to the 39,054% of the S&P 500 earning dividends over the same period.
If you invest $10,000 in Berkshire Hathaway in 1965, your investment is worth about $1 billion.
Berkshire Hathaway is currently the seventh largest company in the S&P 500 with a market capitalization of around $1.1 trillion.
Up until the year, Berkshire Hathaway stocks continue to outperform. They’ve grown by over 13%, reducing the S&P 500 by 4%.
What investments is Buffett known for?
Some of his most advantageous holdings include Coca-Cola and Apple. Berkshire bought a share in Coca-Cola nearly 40 years ago and continues to own shares in the beverage giant.
“When we own a great business with excellent management, our favorite retention period is eternal,” he wrote in his annual letter to shareholders that year.
He bought Apple in 2016, but in 2024 he significantly cut stakes in the iPhone maker. He was a passive buyer of tech stocks, but was reportedly partially shaken by the hold that Apple saw it had to its customers. It turned out to be one of his best investments.
“Tim Cook (Apple CEO) says he made much more money than he’s ever made Berkshire,” he said at Berkshire Hathaway’s annual meeting.
Buffett and taxes
The investment guru also famously discussed in a 2012 ABC interview with ABC that the secretary paid a tax rate of 17.4% to highlight tax inequality in the tax system, the fact that he paid a tax rate of 35.8% of his income.
Buffett has long defended tax reform and believes that wealthy people should pay their fair share. He said that taxation systems unfairly benefit the wealthy, but rather than following the law, they blame individuals, rather than blaming the US Congress.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
