On the weekend, legendary investor Warren Buffett announced that he would be stepping down as CEO of Berkshire Hathaway at the end of the year. After decades at the helm of the world鈥檚 most successful holding company, Buffett is handing the reigns to Greg Abel, his longtime designated successor. 鈥淎t 94, it won鈥檛 be long before Greg Abel replaces me as CEO and will be writing the annual letters,鈥 Buffett wrote in its letter to shareholders in February 2025, perhaps already knowing that the time to step aside had come.
As chairman and CEO of Berkshire Hathaway, Buffett built a fortune through disciplined value investing, favoring fundamentally strong companies with long-term growth potential. Over his decade-long career, Buffett became a symbol of patient, rational investing and an often-quoted source of financial wisdom. 鈥淏e fearful when others are greedy and greedy when others are fearful,鈥 was one of his famous mantras, which guided many private investors throughout the past decades.
Buffett, the 鈥淥racle of Omaha鈥, wouldn鈥檛 have become this cult figure in financial circles if he didn鈥檛 have the numbers to back up his wisdoms. Since 1965, Berkshire Hathaway鈥檚 stock outperformed the S&P 500, including dividends, in 40 out of 60 years, returning a total of 5,502,284 percent compared to the S&P 500鈥檚 total return of 39,054 percent. Berkshire鈥檚 compounded annual gain over that period was 19.9 percent, almost double the S&P 500鈥檚 10.4 percent annual return. $1,000 invested at the end of 1964 would have been worth $55 million at the end of 2024, illustrating the power of compound interest, one of Buffett鈥檚 guiding principles.
Buffett鈥檚 legacy includes not just immense wealth, but also philanthropy, having pledged to give away 99 percent of his fortune during his lifetime or at death. 鈥淭his pledge will leave my lifestyle untouched and that of my children as well,鈥 he , contrasting his contribution to the sacrifices made by regular Americans who give away money they could use for personal pleasure instead. It is this self-awareness and sense of reality that has made Buffett so popular, especially in an age when other billionaires strive for ever more power.
