The move marks the end of an era in American capitalism after Buffett served for 60 years at the helm of the investment fund, during which time he became a household name and a multibillionaire.
The news prompted an outpouring of praise for Buffett from business leaders and investors.
“I’ve learned so much from him to this very day, and I am honoured to call him a friend.”
He added: “It’s been one of the great privileges of my life to know him. And there’s no question that Warren is leaving Berkshire in great hands with Greg.”
“It was not limited to an optimistic vision of the future,” Gross told Business Insider. “Through his insurance holdings that by their structure allowed for the investment of premiums at a near zero cost into higher returning assets such as Coke, AMEX and Apple and in so doing he created a spread which over time led to billions and the recognition not just as a stock picker but as a financial structural wizard.”
Cole Smead, chief executive of Smead Capital Management, said after Buffett’s announcement, he turned to his father Bill Smead, who founded the firm, and said: “Well, it’s the end of an era. It’s sad, but it’s life.”
“I couldn’t be more humbled and honoured to be part of Berkshire as we go forth,” Abel told shareholders on Saturday.
“The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine,” he added.
“The question going forward is: will Berkshire still have a Buffett premium when Buffett is not there?” said Cathy Seifert, an analyst at CFRA Research. “You’re buying a stock and you’re also getting the investing prowess of a legend. With that legend gone, what is the value?”
Who is Warren Buffett?
Buffett is known for being an unusual figure in the investment world, despite his enormous wealth. The latest Bloomberg Billionaires Index estimates his net worth at $169bn (£127bn), making him the world’s fifth-wealthiest person, ahead of Microsoft founder Bill Gates and LVMH chief executive Bernard Arnault.
He is also a keen bridge player, notching up more than eight hours a week, according to the Washington Post. Like many billionaires, he plays golf, but unlike many, he is a devoted ukulele player, using his skills to impress his first wife Susan, according to US radio station NPR.
On the back of Berkshire’s success, Buffett has donated a large amount of his personal wealth to causes he cares about. In 2006, he donated 85 per cent of his Berkshire shares to five foundations, including the Bill & Melinda Gates Foundation, and has pledged to leave 99 per cent of his wealth to philanthropic causes during his lifetime or upon his death.
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