Buffett admitted that the impact of age ultimately led him to decide to hand over the management of Berkshire Hathaway to Greg Abel. Buffett stated that it would be unfair not to promote Abel to this position (CEO), and the longer Berkshire benefits from Abel, the better.
Buffett admitted that the impact of age ultimately led him to decide to hand over the $Berkshire Hathaway-A (BRK.A.US)$ management of Berkshire Hathaway to Greg Abel.
On May 14, Buffett, Chairman and CEO of Berkshire Hathaway, stated in an interview with The Wall Street Journal: "I don't know why, but it wasn't until I was around 90 that I really started to feel old, but once you start feeling old, that change is irreversible."
According to reports, Buffett noticed that he occasionally lost his balance and sometimes had difficulty remembering someone's name. Suddenly, the newspapers he read seemed to have insufficient ink. These feelings coalesced into a decision over the past year, and ultimately at the Berkshire annual meeting on May 3, he announced he would step down as CEO in December, with Abel succeeding him, a news that shocked the investment community at that time.
Buffett said: "True talent is extremely rare, rare in the business sector, rare in capital allocation, and rare in almost all human activities. To be honest, it would be unfair not to promote Abel to this position (CEO), and the longer Berkshire benefits from Abel, the better."
Buffett praised Abel as both a manager and a trade facilitator: "The difference in energy levels and work achieved during his 10-hour workdays compared to my performance has become increasingly evident; he is more efficient in completing tasks, managing adjustments, and helping those in need."
62-year-old Abel joined the group in 1999 through Berkshire's investment in MidAmerican Energy, a utility company in Des Moines, Iowa. In 2018, Buffett promoted Abel to Vice Chairman, responsible for all non-Insurance business at Berkshire. By 2021, he had become Buffett's chosen successor as CEO.
Passing the baton but not retiring: Buffett's version of a "semi-retired" life.
Buffett emphasized that although his era as CEO is coming to an end, he intends to continue working.
"My health is good, and I feel fine every day," he said, "I’m in the office, working with people I love who also quite like me, and we get along very well."
"I’m not going to sit at home watching soap operas," he laughed, "My interests remain the same."
The Abel era will begin in less than eight months. And when that moment arrives, Buffett won’t go far—he plans to continue going to his office in Omaha and remain in his role as Chairman.
Buffett acknowledged that aging has diminished some of his abilities, but he stated that he still possesses perhaps the most valuable and rare gift as an investor: "I have no difficulty making decisions, whether it was 20 years ago, 40 years ago, or 60 years ago. If the market panics, I’m still able to contribute, because when prices fall or others feel panic, I’m not afraid, and that really has nothing to do with age."
Recently, Berkshire's large reserves of cash and Treasury bonds have been constantly increasing, raising external concerns about where the company will next make its trades. Buffett stated, "Abel will have ideas about where the funds should be directed."
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