Billionaire investor Warren Buffett has been hailed as “everything good about American capitalism” after stepping down as chief executive of Berkshire Hathaway.
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.
Berkshire’s vice chairman, Greg Abel, will take the reins of the trillion-dollar company when Buffett steps down at the end of 2025.
The news prompted an outpouring of praise for Buffett from business leaders and investors.
“Warren Buffett represents everything that is good about American capitalism and America itself – investing in the growth of our nation and its businesses with integrity, optimism and common sense,” said Jamie Dimon, chief executive of US bank JPMorgan Chase & Co.
“I’ve learned so much from him to this very day, and I am honoured to call him a friend.”
Writing on the social network X, Apple’s chief executive, Tim Cook, said that there had “never been someone like Warren”.
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.”
Billionaire investor and PIMCO co-founder Bill Gross said that Buffett’s “vision” was his true strength.
“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.”
In a post on X, Gross added: “I knew nothing about insurance and candy stores but was sold by his long-term vision of the economy and markets,” Gross wrote. “Congratulations my friend — not just on the numbers — but on the philanthropy and the years. Having a cherry Coke with you was a highlight of my career.”
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.”
Berkshire’s customers and backers will now be focused on Abel, whose move into the chief executive seat will propel him into the spotlight. Abel has long been identified as Buffett’s expected successor and is expected to maintain the fund’s culture of investing in companies for the long haul and not always paying dividends to shareholders.
“I couldn’t be more humbled and honoured to be part of Berkshire as we go forth,” Abel told shareholders on Saturday.
Buffett also said he had “zero” intention of selling any of his Berkshire stock, nearly all of which will be donated after his death.
“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.
Many investors have viewed the conglomerate and Buffett’s stewardship as a safe haven from uncertainty about the economy and US President Donald Trump’s tariff policies.
“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?”
Speaking on Saturday, Buffett once again appeared to criticise the ongoing trade war. “Balanced trade is good for the world,” he said. “Trade can be an act of war… In the United States, we should be looking to trade with the rest of the world. We want a prosperous world.”
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.
The Berkshire boss is famed for his frugal spending, living in the same house in Omaha, Nebraska, since the 1950s, and driving a modest car which once bore a license plate that read “THRIFTY”. Buffett has often been pictured eating breakfast at McDonald’s and famously borrowed furniture from friends and family when his children were born.
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.
Buffett began building his wealth by investing in the stock market at aged 11, and first filed a tax return when he was 13. He held various odd jobs as a teenager, including delivering the Washington Post and as a salesman of calendars, used golf balls and stamps. By the time he was 16, he had amassed the equivalent of $53,000.
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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