At the age of 94, the legendary "Oracle of Omaha" is finally passing the torch after six decades of unchallenged reign at the helm of one of the most powerful capitalist conglomerates in American history.

"I have no intention, absolutely none, of selling a single share in Berkshire Hathaway," he insisted, receiving a two-minute standing ovation.

His departure does not mean a complete withdrawal, however: he will remain chairman of the board of directors, while Greg Abel, vice president in charge of non-insurance operations, will take over the executive reins on January 1, 2026. This transition, which was anticipated but precipitated by the surprise of his announcement, marks a solemn page in the annals of contemporary finance.

"I am confident that Berkshire's future under Greg's leadership will be even better than it has been under mine".

The mechanics of a long-planned succession

The appointment of Greg Abel is not a surprise in itself. Since 2021, Buffett had publicly named the Edmonton-born Canadian, a hockey fan and discreet man, as his successor. At 62, Abel has risen steadily through the ranks, overseeing all non-insurance businesses since 2018. Last year, he also began taking over some of the capital allocation functions historically held by Buffett.

The insurance businesses, which Berkshire's financial pillars (including Geico, General Re, and National Indemnity), will continue to report to Ajit Jain, another respected vice chairman and longtime colleague. This dual leadership structure should ensure strategic continuity while allowing Abel to make his mark.

An inimitable investment architecture

Since taking control of Berkshire in 1965 (then a struggling textile manufacturer), Buffett has steadily built an extraordinary financial empire. Like a medieval cathedral, each stone has been laid with patience and wisdom. Today, Berkshire Hathaway is an empire comprising 189 subsidiaries operating in insurance, rail (BNSF), agri-food (Dairy Queen, See's Candies), energy and, of course, financial investments.

Between 1965 and 2024, Berkshire Hathaway's shares appreciated at an annualized rate of 19.9% (almost double the S&P 500's 10.4%)!

Buffett has been able to exploit a highly effective source of financing: the "float" generated by insurance premiums that have not yet been used to pay claims. This low-cost resource, with no repayment deadline, is one of the key drivers of his performance. Unlike a traditional investor exposed to margin calls, Buffett has been able to maneuver flexibly and with a long-term perspective.

As researcher Andrea Frazzini points out: "His performance is based on three pillars: buying high-quality, low-risk companies at a reasonable price, using moderate financial leverage (estimated at around 1.6) and, above all, sticking to an effective strategy over a very long period of time."

The Buffett myth beyond the numbers

While Berkshire's performance has been remarkable (almost doubling the S&P 500's return over the long term), what truly sets Warren Buffett apart is perhaps less his financial ingenuity than his art of consistency and confidence. It's not just a matter of piling up high-yielding stocks. Identifying sustainable, resilient companies with high-quality human capital requires sharp judgment, which can sometimes be counterintuitive. Many investors have tried to emulate his recipe by rushing into low-volatility, high-return stocks. Few have succeeded.

Buffett has cultivated an almost mystical reputation. His patient wisdom, modest style, and disarming humility at the annual meetings in Omaha (veritable economic masses) have consolidated an aura of unshakeable confidence around him. It is this image that has allowed Berkshire to weather periods of underperformance without panic among shareholders.

Iconic bets and mistakes acknowledged

Buffett's resounding successes include The Coca-Cola Company, American Express, Wells Fargo (historically), and Apple, which has become one of the pillars of Berkshire's portfolio. The latter investment, initiated in 2016, shook up the habits of the 90-year-old, who had historically been cautious about technology. It was a masterstroke: Apple now accounts for more than 40% of Berkshire's listed portfolio.

But Buffett is not infallible. He readily admits his mistakes: Kraft Heinz, IBM, and the airlines sold at rock-bottom prices during the pandemic. This humility, rare at his level of fame, is undoubtedly one of the keys to his longevity.

"The worst investment I ever made? Probably Dexter Shoe Company, paid for with Berkshire stock... which makes it a multi-billion dollar mistake today."

The post-Buffett era: continuity or renewal?

As Greg Abel prepares to succeed one of the greatest investors of all time, questions abound: will he be able to keep the Berkshire spirit alive without being perpetually overshadowed by its founder?

Abel, known for being discreet, hard-working, and pragmatic, was trained in Buffett's shadow. He does not have Buffett's charisma or media savvy, but he has his mentor's complete trust. One of the major challenges will be the distribution of capital, a strategic and highly symbolic function.

In addition, Buffett's other son, Howard, is expected to take on the role of non-executive chairman in the long term, as guardian of the "Berkshire culture". This arrangement is intended to ensure the continuity of the company's identity: a patient, ethical, and pragmatic conglomerate focused on the long-term interests of its shareholders.

With over $347bn in cash, Berkshire is sitting on a mountain of dry powder ready to be used for future large-scale investments. Buffett could still play a decisive role if a major acquisition were to arise before his complete retirement.

An extraordinary financial and moral legacy

Warren Buffett's retirement doesn't just mark the end of an economic chapter. It closes an era in which virtue, patience, and integrity were the guiding principles of an empire built without artifice.

Buffett leaves behind not only a colossal asset portfolio, but also a moral testament embodied in his famous letters to shareholders, which are models of financial education and capitalist common sense. His fortune, almost entirely invested in Berkshire shares, will be donated to charity through his children's foundation.

"The best thing to do with my wealth is to redistribute it to those who need it most."

The end of an era, the beginning of a legend

Warren Buffett's departure from the executive management of Berkshire Hathaway marks a historic turning point. He is stepping down quietly, with the same stoic elegance that has guided every decision he has made. Rarely has a leader left such a profound mark on global capitalism without ever succumbing to fads or empty promises.

Buffett was not just a genius investor. He was a builder of trust, an architect of lasting institutions, and a captivating storyteller of economic wisdom. At a time when the markets will soon be buzzing without his familiar voice, one thing remains certain: the benevolent shadow of the Oracle of Omaha will continue to permeate the decisions of those who strive to combine financial rigor with moral responsibility.

The legend is written. The myth begins.