End of an era: Warren Buffett says he’s ‘going quiet’ in his last letter to investors

NEW YORK - Mr Warren Buffett, the billionaire investor who turned an ageing textile mill into a more than US$1 trillion (S$1.3 trillion) conglomerate, said he is “going quiet”, marking the end of an era for one of the business world’s most-watched investing gurus.

In a letter disclosing that he is donating more than US$1.3 billion to four family foundations, the 95-year-old investor, who is stepping down from his role of chief executive at the end of 2025, said he is going to

stop writing Berkshire Hathaway’s annual letters

and speaking at its meetings.

The letter marks another step in Mr Buffett’s year of handoff steps, following his surprise announcement at the end of the firm’s annual shareholder meeting in May that he would finally pass the reins to long-time deputy Greg Abel.

Mr Buffett is leaving his 63-year-old deputy a US$382 billion cash pile that has grown over the past few years, as the billionaire refrained from doing large acquisitions and buying back his firm’s shares.

While he said he generally feels “good”, he plans to speed up his plans to give away much of his US$150 billion personal fortune to his children’s philanthropic foundations while he is still alive.

“Though I move slowly and read with increasing difficulty, I am at the office five days a week, where I work with wonderful people,” Mr Buffett said in the letter.

“Occasionally, I get a useful idea or am approached with an offer we might not otherwise have received. Because of Berkshire’s size and because of market levels, ideas are few – but not zero.”

Letters such as the one released on Nov 10, along with the ones that accompany the firm’s annual results, have become a must-read for his fans, who seek out the pearls of wisdom, investment advice and witticisms that drew a legion of fans to the legendary investor. 

In the letter, Mr Buffett said he wanted to accelerate the pace of his lifetime donations to his children so they can dispose of his entire estate.

But his children – Susie, Howard and Peter – are in their 60s and 70s, with Mr Buffett saying it’d be a “mistake” to wager that they all might enjoy his “exceptional luck” in ageing. 

“All three children now have the maturity, brains, energy and instincts to disburse a large fortune,” Mr Buffett said. “They will also have the advantage of being above ground when I am long gone, and, if necessary, can adopt policies both anticipatory and reactive to federal tax policies or other developments affecting philanthropy.”

Mr Buffett cautioned that he would want to keep a “significant” amount of Class A shares until Berkshire Hathaway shareholders are as comfortable with Mr Abel as they were with him and his late long-time business partner, Mr Charlie Munger.

“That level of confidence shouldn’t take long,” Mr Buffett said. “My children are already 100 per cent behind Greg, as are the Berkshire directors.”

While he will remain as chairman, Mr Buffett said last May that Mr Abel will have the final word on the running of Berkshire Hathaway’s operations and in terms of capital deployment. Mr Buffett is expected to complete the handoff to Mr Abel at the year end.

In his letter on Nov 10, Mr Buffett reiterated his trust in Mr Abel, saying the executive has exceeded his expectations since he first thought of him as a successor.

“I can’t think of a CEO, a management consultant, an academic, a member of government – you name it – that I would select over Greg to handle your savings and mine,” Mr Buffett said in the letter.

He intends to continue to address shareholders in his traditional Thanksgiving missive, which also details his massive philanthropic donations. 
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