After six decades of insightful investment wisdom, the news from Omaha struck with unexpected force.
One shareholder captured the sentiment following Warren Buffett’s announcement on Saturday that he will retire as Berkshire Hathaway’s chief executive at the end of the year: “Even though it was expected, Warren’s decision still came as a profound shock.”
In an era marked by uncertainty, Buffett was a symbol of stability. Since he assumed leadership of Berkshire Hathaway on May 10, 1965, major American companies such as General Motors have seen 11 CEOs come and go, Sears Roebuck—the former retail giant—has disappeared, 11 U.S. presidents have served their terms (with some facing impeachment or resignation), and even Coca-Cola altered its formula. Through it all, Buffett remained consistent.
The financial results are striking: Berkshire’s stock price was $18 per share the day Buffett took charge. Today, it trades above $809,000 per share—nearly 45,000 times higher. By comparison, the Dow Jones Industrial Average has risen just under 45-fold in the same timeframe.
This means Buffett’s investment returns have outpaced the blue-chip index by a factor of about a thousand, making him arguably the most successful investor in history. But his impact goes beyond numbers; decades of effective management have also established him as a premier corporate leader.
Buffett’s distinction lies not only in his financial achievements—others may have amassed greater personal wealth—but in the quality of his leadership and character. Echoing the legendary testimony of J.P. Morgan Sr., with whom he is often compared, Buffett’s integrity set him apart.
Known for rejecting Wall Street’s frequent self-interest and deceptive practices, Buffett upheld the principles of capitalism with deep respect. Most notably, he regarded the responsibility executives bear toward shareholders as a solemn trust.
