Warren Buffett bids farewell in final Berkshire letter: 'I'm going quiet'

The 95-year-old Berkshire Hathaway CEO said he would continue sending his Thanksgiving note to his family and shareholders every year

Warren Buffett, the outgoing CEO of Berkshire Hathaway, announced that he will stop writing annual shareholder letters and step back from public appearances, marking the end of a storied era for one of the world’s most influential investors.

 

In his final note released on Monday (local time), Buffett, 95, said he will continue sending his annual Thanksgiving letter to family and shareholders but will no longer pen Berkshire’s detailed yearly reports or “talk endlessly” at shareholder meetings.

 

“I will no longer be writing Berkshire’s annual report or talking endlessly at the annual meeting. As the British would say, I’m ‘going quiet,’ sort of,” Buffett wrote 

The billionaire converted shares worth $1.3 billion and donated them to four family foundations, namely: The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G Buffett Foundation, and NoVo Foundation.

 

In his letter, Buffett spun anecdotes, business, and life lessons he is widely known for, and also shed light on some new plans about his philanthropic giving and CEO pay.

   

 

 

Top highlights from Warren Buffett's last Thanksgiving letter

 

1. The 95-year-old Berkshire Hathaway CEO said he generally feels good, though he feels the effect of aging on his balance, sight, hearing, and memory. "Though I move slowly and read with increasing difficulty, I am at the office five days a week, where I work with wonderful people."

 

2. Although Buffett has increased his donations to his children’s charitable foundations, he said his positive view of Berkshire Hathaway remains unchanged. He plans to retain a “substantial portion” of his Class A shares until investors gain confidence in his successor as chief executive. “That level of comfort shouldn’t take long,” he wrote.

 

3. Speaking highly of his son Abel, who will now take over the charge at Berkshire Hathaway, Buffett called him a "great manager", "a tireless worker", and an "honest communicator". He further added, "My hope is that his health remains good for several decades. With a little luck, Berkshire should require only five or six CEOs over the next century. It should particularly avoid those whose goal is to retire at 65, to become look-at-me rich, or to initiate a dynasty."

 

4. Buffett also shed light on his life in Omaha and dedicated nearly two pages of his letter to recounting his good life in Omaha and the successes and wisdom of his fellow Nebraskans, including his "best pal" Charlie Munger, who has been his friend for 64 years.

 

5. He added, "Looking back, I feel that both Berkshire and I did better because of our base in Omaha than if I had resided anywhere else. The center of the United States was a very good place to be born, to raise a family, and to build a business."

 

Final words: kindness, humility, and legacy

 

6. Buffett ended the letter with a reflection on life, mistakes, and humanity.

 

"One perhaps self-serving observation. I’m happy to say I feel better about the second half of my life than the first. My advice: Don’t beat yourself up over past mistakes – learn at least a little from them and move on. It is never too late to improve. Get the right heroes and copy them. You can start with Tom Murphy; he was the best. Remember Alfred Nobel, later of Nobel Prize fame, who – reportedly – read his own obituary that was mistakenly printed when his brother died and a newspaper got mixed up. He was horrified at what he read and realized he should change his behavior. Don’t count on a newsroom mix-up: Decide what you would like your obituary to say and live the life to deserve it. Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior. I write this as one who has been thoughtless countless times and made many mistakes but also became very lucky in learning from some wonderful friends how to behave better (still a long way from perfect, however). Keep in mind that the cleaning lady is as much a human being as the Chairman."