Warren Buffett brings his 60-year history to a close — into a new era for Berkshire Hathaway

A titan of the investment world finally hands over the reins to the next generation. Warren Buffett, the Oracle of Omaha, has officially stepped down as CEO of Berkshire Hathaway, passing the baton to his long-time successor, Greg Abel. The end of his over 60-year leadership is not just a personnel change but a pivotal moment in modern financial history.

Investment Philosophy Built Before the Internet Era

Buffett’s career began long before most current tech CEOs were born. His investment track record is now difficult to replicate in today’s environment. This is not only due to his exceptional talent but also because the current investment landscape is fundamentally different from when he started.

Before the information age, during times when market noise was minimal, Buffett navigated the most challenging periods in finance and economics. His investments in Burlington Northern Railroad, long-term holdings in Apple stock, and his consistent disregard for popular trends in favor of principle-based judgment exemplify his robust investment philosophy. This steadfast approach is the foundation of his legendary status.

Market Overheating Warning Signs Indicated by Metrics

Interestingly, some indicators defined by Buffett himself are now issuing warning signals. The Buffett Indicator (the Wilshire 5000 Total Market Index divided by GDP) has reached 221.4%, marking a 22% surge since April 30. This is the highest level since data collection began in 1970. It suggests that the stock market is highly valued, and traditional Buffett-style investment judgment calls for caution in this environment.

Passing the Torch to Greg Abel—Same Philosophy, New Era

Greg will officially assume the role of CEO starting Wednesday. The successor Buffett has long designated has been meticulously prepared behind the scenes. Berkshire’s core philosophy remains unchanged and will be inherited.

Principles such as investing in strong companies, maintaining calm during panic, and refraining from making statements without backing numbers—these fundamental attitudes will likely be upheld under Abel. Howard Buffett (Warren’s son) also clearly articulated the essence of management last year: “Follow through on what you say, do it when you say you will. Take responsibility. If you make a mistake, face it.”

Challenges Facing the Successor

In the final phase of Buffett’s era, the portfolio remains dominated by Apple, Amazon, and Alphabet. Even amid the AI whirlwind, Buffett maintained consistent judgment. Instead of jumping on emerging themes, he focused on performance and valuation.

Abel’s biggest challenge will be how to sustain this “silent persuasion.” While the entire financial industry has looked to Buffett as a guiding light, the new CEO must balance market expectations with his own judgment standards.

The 60-Year Achievements Told by Numbers

For reference, if $1 million had been invested in the S&P 500 from 1957 to 2007, it would have grown to $166 million. Over the same period, Buffett’s investments yielded $81 billion—an obvious difference. Adding the most recent 18 years, the portfolio has expanded to $428 billion.

Outlook for the New Era

Certainty is waning, and markets are losing direction. With the departure of the Oracle of Omaha, a key reference point is lost. However, Berkshire’s investment philosophy is embedded within the organization. How Greg Abel will adapt and uphold this philosophy in the changing times will be the focus of the next chapter.