The warse, quirky super investor Warren Buffett resigns. He was an oracle for his fans

After sixty editions of the annual shareholders’ meeting, it is finally enough. Super -investor Warren Buffett, 94 years old now, announced this weekend to what many have feared for years: his resignation as boss at investment vehicle Berkshire Hathaway. In the presence of tens of thousands of fans, because the shareholders of Buffett’s company can be called, the ‘Oracle of Omaha’ almost casually that he will take a step back. That message was answered with a long -term standing ovation.

Few board chairmen enjoy the fame and appearance of Warren Buffett. His resignation may therefore rightly be called the end of an era. Thanks to its no-nonsense approach of the stock markets, the warse, quirky, but above all approachable Buffett became the compass for millions of investors worldwide. His comments on the markets almost got strength from law, his investment method is closely monitored. And Berkshire Hathaway grew under Buffett’s leadership from a small textile factory to a conglomerate with dozens of companies, real estate and investments with a total market value of 1,160 billion dollars (1,026 billion euros).

First meeting in apartment

Buffett started his annual day for the shareholders in 1965. That was the year that he took over textile company Berkshire Hathaway, which since then became the cornerstone and name giver of Buffett’s ever -expanding empire. At the time, the investor received two to three people in an apartment above one of Berkshire’s textile factories in the New England region. Until the 1980s, hardly any people came to Buffett’s meetings, now moved to the office of an insurer that Buffett had become the owner. In 1981 there were only 22 people present. In order not to make it look too empty and sad, employees were asked to sit in the room, the Financial Times This weekend in an article about Buffetts farewell.

Buffetts annual shareholders ventement was the ‘Woodstock of the capitalists’

How different is the situation now. This weekend, Buffett traditionally held its annual meeting in his birthplace Omaha, Nebraska, and the first visitors were in line at night to arrive on time. Tens of thousands of investors come to the shareholders’ meeting of Berkshire Hathaway every year. Where other companies organize a relatively business shareholders’ meeting, those of Berkshire Hathaway are more like a festival. The meetings last several days and many companies that Buffett is invested in or owned take the opportunity to set up stands with their products. There is a picnic and a running event and the restaurants and cafés in Omaha are full of directors, shareholders and fans for days. Buffetts annual shareholders ventement was therefore nicknamed the ‘Woodstock of the capitalists’.

‘In principle forever’

Because no matter how cozy it can be, making money was and has been the most important motivation of Buffett. He made a name for himself as an investor who actually managed to value companies. « It is better to buy a good company for a reasonable price than a reasonable company for a good price, » is one of the statements of Buffett that determined both his own actions and converted to a stock market wisdom that was substantiated among his fans. It led to an extensive portfolio of home-garden-and-kitchen companies such as car insurer Geico, railway company BNSF, energy company Berkshire Hathaway Energy, ice maker Dairy Queen, clothing seller Fruit of the Loom, Benjamin Moore and private aircraft company Netjets. Berkshire consists of 200 companies in total. And if Berkshire stepped into something, it was for the long term. « In principle forever, » Buffett once said about that. Many of his shareholders followed the same strategy, also in their private investments.

Thanks to the performance of those companies, Berkshire managed to build a cash position of almost $ 348 billionmore than the market value of McDonald’s, according to The New York Times. That is not just good news. In recent months, Berkshire sold many shares without making new investments. Buffett and his team had great difficulty in finding companies that would be sufficiently profitable in these uncertain economic times. Buffett, a Democrat, did not mention President Trump by name, but did express fierce criticism of the president’s trade policy. « Trade should not be a weapon, » said Buffett.

Berkshires financial position made Buffett one of the most influential businessmen in the world. When Warren speaks, they listen, even when it comes to politics. This weekend in Omaha, the 94-year-old founder also spoke to his shareholders for hours. Despite his well -advanced age (he came on stage with a walking stick), he always continued to do so. However, the length of the question session was slightly shorter than in previous years, they saw people there.

Not completely gone yet

And at the end came that inevitable announcement. His intended successor Greg Abel (« only » 62 years old) knew nothing, Buffett told the crowd: « Greg knows nothing about this until he hears this now. » Only his son and daughter, Howard and Susie, knew about it. Abel was sitting next to Buffett when he announced his departure, and responded an hour later – without Buffett on stage – on the news: « I just want to say that I feel enormously worshiped and grateful to be part of Berkshire in the future. »

Buffett does not go completely away. He remains chairman of the board, similar to the role of president-commissioner here. Buffett also announced that it would not sell its own shares. « I don’t intend – absolutely not – to sell even one share of Berkshire Hathaway. The decision to keep all shares is an economic decision, because I think the prospects for Berkshire under Greg’s leadership will be better than under mine, » said Buffett. « I will eventually give it away, » said Buffett, who had previously announced that he would put 99 percent of his assets (about $ 168 billion) in charities after his death. Then his children still have enough money to never have to worry, Buffett reasoned.

How long Buffett will remain active is a question that cannot be answered. Buffett’s fellow townman and Kompaan from the first hour, the lawyer Charlie Munger, remained active behind the scenes at Berkshire Hathaway until his death in 2023 – Munger was then 99 years old. His fans can hope that Omaha’s oracle will have been awarded at least as long.

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