At a Glance
- Buffett’s last day as CEO Wednesday.
- Greg Abel will lead Berkshire Hathaway; Buffett stays chairman.
- Buffett shares timeless investment and ethical wisdom.
- Why it matters: Buffett’s exit marks the end of an era and his guidance remains a benchmark for investors worldwide.
After six decades at the helm of Berkshire Hathaway, legendary investor Warren Buffett is stepping down as CEO. He will stay on as chairman while former CFO Greg Abel assumes the top executive role. The transition comes amid a tradition of Buffett’s candid advice on investing, ethics, and life.
Leadership Transition
Buffett’s final day as chief executive falls on Wednesday, closing a 60-year tenure that built Berkshire into a global conglomerate. He will continue as chairman, preserving his influence over the company’s direction. Greg Abel, who has served as CFO, will take over the CEO duties.
Buffett’s Timeless Advice
Buffett’s guidance has attracted millions of followers who read his annual letters and attend his Omaha meetings. His most famous mantra is to buy when others fear and sell when others greed. He also stresses staying within one’s circle of competence and never losing money.
- Warren Buffett stated:
> “Be fearful when others are greedy, and greedy when others are fearful.”
- Buffett added:
> “Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.”
- Buffett warned:
> “After they first obey all rules, I then want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper to be read by their spouses, children and friends with the reporting done by an informed and critical reporter.”
- Buffett emphasized:
> “Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.”
- Buffett noted:
> “You only find out who is swimming naked when the tide goes out.”
- Buffett said:
> “Who you associate with is just enormously important. Don’t expect that you’ll make every decision right on that. But you are going to have your life progress in the general direction of the people you work with, that you admire, that become your friends.”
- Buffett concluded:
> “Our unwavering conclusion: never bet against America.”
Ethical Standards
In 1991, Buffett explained this newspaper test to a Congressional committee as he cleaned up Salomon Brothers. He has repeated the test throughout his career, underscoring his commitment to integrity.
Key Takeaways
- Buffett’s CEO role ends on Wednesday; Greg Abel becomes CEO.
- Buffett remains chairman and continues to shape Berkshire’s strategy.
- His quotes emphasize buying low, staying ethical, and trusting America’s market.
Buffett’s departure marks a historic moment for Berkshire Hathaway, but his principles continue to guide investors and executives alike.
