 "As Warren Buffett retires, a look at the legacy of a pioneer investor")
Warren Buffett will retire as chief executive officer of Berkshire Hathaway on Wednesday (December 31), bringing down curtains on one of the longest and most consequential tenures in corporate history. Greg Abel will succeed Buffett and formally assume charge as CEO on January 1, while the 95-year-old will remain chairman of the company.
Buffett’s departure from day-to-day management will bring curtains to a career spanning nearly 60 years during which Berkshire evolved from a declining textile maker into a global conglomerate and a reference point for long-term investing.
Early life and education of Warren Buffett
Born in 1930 in Omaha, Nebraska, Buffett is the son of US Congressman Howard Buffett. His engagement with business began early when he bought his first stock at the age of eleven and filed his first tax return at thirteen. As a schoolboy, he reportedly earned money selling newspapers, chewing gum and Coca-Cola, and by his teenage years was generating a steady income from small ventures.
After being rejected by Harvard Business School, Buffett earned a master’s degree in economics from Columbia University, where he studied under Benjamin Graham, widely regarded as the father of value investing. The emphasis on intrinsic value, discipline, and risk aversion that defined Graham’s work would remain central to Buffett’s approach.
How Buffett transformed Berkshire Hathaway
Buffett began purchasing shares of Berkshire Hathaway in 1962, when the New England textile company was trading at about $7.60 a share. Rather than revive its core business, he gradually repurposed the firm into a holding company.
He used the company as a vehicle where cash flows, particularly from insurance operations, were redeployed into acquisitions and equity investments. Over time, Berkshire built a diversified portfolio of wholly owned businesses, alongside large minority stakes in listed companies.
Today, the group owns businesses such as Geico, Duracell, Dairy Queen and BNSF Railway, and holds significant investments in American Express, Coca-Cola and Apple. Berkshire’s Class A shares now trade at more than $750,000 each, a figure that reflects both accumulated earnings and a culture that shunned stock splits and short-term signalling.
Investment record and net worth
For decades, Berkshire Hathaway outperformed the S&P 500, establishing Buffett’s reputation as the world’s most influential investor. Even after large-scale philanthropy, his economic stake in Berkshire remains substantial.
Buffett has donated more than $60 billion over the past two decades, yet his remaining Berkshire holding is valued at roughly $150 billion. Forbes estimates his net worth at around $149-168 billion in 2025, placing him among the 10 richest people globally. The bulk of his wealth remains tied to Berkshire stock.
Lifestyle and philanthropy
Despite his wealth, Buffett is known for a frugal and routine-driven lifestyle. He continues to live in the Omaha house he bought in 1958, drives himself, reads multiple newspapers daily and was slow to adopt a smartphone by his own admission.
He has pledged to give away more than 99 per cent of his fortune. Nearly $65 billion has already been donated, largely through the Gates Foundation and the foundations run by his children. In 2010, Buffett and Bill Gates launched the Giving Pledge, urging billionaires to commit at least half of their wealth to charitable causes.
What is the Buffett Indicator and why it matters
One of Buffett’s most enduring influences on market thinking is the valuation gauge that informally bears his name. The Buffett Indicator compares the total market capitalisation of US-listed companies with the size of the US economy, typically using the Wilshire 5000 divided by gross domestic product.
Buffett described it in a 2001 Fortune magazine article as “probably the best single measure of where valuations stand at any given moment,” while also cautioning that it has limitations.
For example, at current levels, estimates suggest annual market returns could be modest or negative after dividends, reflecting high valuations driven by technology stocks and strong earnings expectations. These are conditions Buffett has traditionally approached with restraint.
Shareholder letters and legacy
Buffett’s shareholder letters became required reading on Wall Street for their clarity and restraint. They warned against leverage, short-termism and overconfidence, and repeatedly emphasised preparation over prediction. Some gems among those shareholder letters by Buffett, as cited in a CNN report, include quotes like:
“It’s only when the tide goes out that you learn who’s been swimming naked.”
“Predicting rain doesn’t count; building arks does.”
“I’ve reluctantly discarded the notion of my continuing to manage the portfolio after my death – abandoning my hope to give new meaning to the term ‘thinking outside the box.’”
As Buffett hands operational control to a successor, those principles remain embedded in Berkshire’s structure. As chairman, and as a reference point for investors, he will perhaps continue to matter.