Warren Buffett retires at 95 and sends his final letter to shareholders

Warren Buffett has published what will be his final annual letter to Berkshire Hathaway shareholders, closing the book on a 60-year career that turned a struggling textile mill into one of the most influential conglomerates in global finance. The 95-year-old, long known as the “Oracle of Omaha,” will step down at the end of the year, handing leadership to long-time lieutenant Greg Abel.

Mr Buffett’s reputation has been shaped by the combination of his enormous wealth – estimated at nearly $150 billion – and his publicly frugal, plain-spoken approach to value investing. His letters have been required reading for investors and business schools alike. This last one, however, had a noticeably sharper edge.

While Mr Buffett reiterated his confidence in Mr Abel, wishing him an “extended tenure,” he also signalled that shareholders should expect far less of him in future. After stepping down, he will “go quiet,” replacing his famously detailed annual letters with brief messages each Thanksgiving – a nod to continuity rather than influence.

But before “quieting down”, the mega investor used his final platform to issue a pointed warning about the state of American corporate culture. The billionaire criticised what he described as a “toxic” cycle of executive envy and inflated compensation, arguing that disclosure rules intended to moderate pay have instead fuelled competition. “Envy and greed walk hand in hand,” he wrote.

While he didn’t name names, the comments landed just days after Tesla shareholders approved a pay package for Elon Musk valued at up to $1 trillion. The proximity was difficult to ignore.

Berkshire’s Class A shares have slipped roughly 8 per cent since Buffett signalled his retirement plans in May – a reminder that generational transition at a company built so heavily on one man’s philosophy inevitably unsettles markets. In the letter, Mr Buffett stressed that he will retain a “significant portion” of his Berkshire holdings to underpin a stable handover to Mr Abel.

Mr Buffett also confirmed new charitable donations: 2.7 million Class B shares, worth about $1.3 billion, transferred to family-run foundations in line with the giving strategy he first outlined nearly two decades ago. Since 2006, he has pledged to donate essentially all of his Berkshire shares and co-founded the Giving Pledge alongside Bill and Melinda Gates.

The letter reiterated that commitment without dramatics – simply as part of the long-running plan.

His reflections also reached beyond business. He invoked the story of Alfred Nobel, who reconsidered his legacy after reading an early, mistakenly published obituary calling him the “merchant of death.” It became a cautionary tale for executives: “Decide what you would like your obituary to say and live the life to deserve it.”

He ended his letter with two remarks that encapsulate a version of modesty. First, that he had been “blessed by the goddess of luck,” having “drawn an unusually long straw.” And second, a practical piece of advice: “You can never be perfect, but you can always get better.”

Even with his criticism of modern market excess, the Berkshire portfolio continues to evolve. A regulatory filing released shortly before the letter showed a multibillion-dollar stake in Alphabet – an unusually large tech-sector position for a firm historically wary of fast-growth technology companies. The investment was likely made by his deputies who have also championed stakes in Amazon. Alphabet shares rose about 3 per cent following the disclosure.

Mr Buffett’s admirers often highlight his integrity, long-term thinking, and unembellished communication style. And while it may be ironic to hear cautions about greed from one of the richest people in the world, his critique of executive excess carries weight precisely because it targets an industry he helped define.

He now steps back from public view, ending an era in which a single annual letter shaped discussion across financial markets. Berkshire will continue under new leadership, but the long shadow of the “Oracle” will likely remain.

Image credit: Warren Buffet, Wikicommons