Warren Buffett has been hailed as ‘everything that is good about American capitalism’ after announcing his retirement after six decades.
The billionaire investor, 94, said he would hand over the reins as chief executive of Berkshire Hathaway to vice chairman Greg Abel at the end of this year.
And his announcement came as he rebuked Donald Trump over his tariff war on America’s trading partners, saying: ‘Trade should not be a weapon.’
Buffett took over Berkshire – then a failing textile company – in 1965 before turning it into a $1.16trillion conglomerate with nearly 200 businesses across the US economy.
The billionaire became known as the ‘Sage of Omaha’, combining investment success with homespun wisdom and a modest lifestyle.
While Berkshire stock rose 5,502,284 per cent from 1965 to 2024, Buffett never moved from a home he paid $31,500 for in 1958. His investment approach stressed the importance of company fundamentals and not overpaying for assets.
‘Sage of Omaha’: Warren Buffett said he would hand over the reins as chief executive of Berkshire Hathaway to vice chairman Greg Abel at the end of this year
His best-known investment of recent years was buying shares in Apple in 2016 – in what turned out to be a lucrative bet that it would recover from a dip in fortunes. Buffett’s own fortune totals $168.2billion according to Forbes magazine, nearly all of which is in Berkshire stock.
Apple boss Tim Cook was among the chief executives paying tribute to Buffett. He said in a social media post: ‘There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him.’
JP Morgan boss Jamie Dimon, the world’s most powerful banker, said: ‘Warren Buffett represents everything that is good about American capitalism and America itself – investing in the growth of our nation and its businesses with integrity, optimism and common sense.’
Buffett’s announcement came at Berkshire’s annual shareholder meeting at its HQ in Omaha, Nebraska.
The company’s share price has risen 19 per cent this year, compared with a 3 per cent drop in the S&P 500 stock index – as it has been seen as a safe haven from economic uncertainty.
But Cathy Seifert, an analyst at CFRA Research, questioned whether it could continue to attract a premium now holding Berkshire stock no longer means ‘getting the investing prowess of a legend’.
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