New York (CNN) — Warren Buffett, in his annual message as CEO of Berkshire Hathaway to shareholders – a tradition dating back to 1965 – said that he will be “going quiet” after he steps down at the end of this year. But the 95-year-old is not going away just yet.
Buffett will no longer write the message atop the company’s annual report, but he will continue to deliver an annual Thanksgiving message, and he will “step up” his philanthropy, giving away the $149 billion in Berkshire Hathaway stock he continues to hold.
“The Oracle of Omaha” has become an investing icon, a billionaire who has cultivated a folksy image, particularly through his letters to shareholders. Although his market moves are closely followed by investors around the world, Buffett has also worked to present himself as a cheerleader for America and ordinary Americans – and for capitalism.
He is being replaced by Greg Abel next year. Abel, 63, is the vice chairman of non-insurance operations of Berkshire and was designated as Buffett’s successor in 2021.
Buffett once again praised his successor, writing that he “has more than met the high expectations I had for him when I first thought he should be Berkshire’s next CEO.”
Buffett also gave an update on his health, admitting that to his “surprise, I generally feel good. Though I move slowly and read with increasing difficulty, I am at the office five days a week where I work with wonderful people.”
But the nonagenarian isn’t getting any younger. Acknowledging the limited time he has left and the giant sum of money he wishes to give away, Buffett said he converted 1,800 shares, worth a combined $1.35 billion, into the company’s cheaper “B shares” and delivered them to four of his family’s foundations Monday.
“To improve the probability that they will dispose of what will essentially be my entire estate before alternate trustees replace them, I need to step up the pace of lifetime gifts to their three foundations,” he said.
Buffett says he has high – but realistic – expectations that the conglomerate he led for six decades will continue to thrive after he steps down as CEO. Berkshire Hathaway (BRK.B) shares have risen more than 10% this year, with the company sitting on a $1 trillion market cap.
“In aggregate, Berkshire’s businesses have moderately better-than-average prospects, led by a few non-correlated and sizable gems,” he wrote. “However, a decade or two from now, there will be many companies that have done better than Berkshire; our size takes its toll.”
The oracle and his ice cream
Buffett has managed to become a symbol of two seemingly disparate things over his decades in the spotlight: a relentless dealmaker and capitalist, wrapped up in an avuncular figure dispensing practical advice.
Berkshire Hathaway’s annual meetings are like those of no other company, dubbed Woodstock for capitalists, with an exhibit floor showing off many of conglomerate Berkshire Hathaway’s businesses.
Indeed, Buffett himself makes a point to appear on the floor and hype up those companies, from eating Dairy Queen ice cream to putting his face and name on limited-edition event merch, all while his security keeps back hordes of shareholding fans trying to take pictures or get a word in with the so-called Oracle of Omaha.
His investing strategy has turned on an incessant search for value, with Berkshire Hathaway often sitting on giant piles of cash until just the right deal comes through. Few other CEOs have earned that level of patience from investors in a market that more often turns on expectations for short-term returns.
Buffett expects the company to move on from him. But so much of Berkshire’s identity has become intertwined with its CEO. It’s hard to imagine the low-profile Greg Abel, for example, putting his face on a ketchup bottle to spur sales. Woodstock for capitalists might get just a little less festive from now on.
The-CNN-Wire
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