Warren Buffett (95), known as the 'master of value investing,' revealed his reasons for retirement, citing declining vision and memory loss due to aging.
On the 14th (local time), Buffett said during an interview with The Wall Street Journal (WSJ) that there was no 'magical moment' when he decided to retire.
He lamented, 'I really wasn’t old until I turned 90. But at some point, I started to age, and it became irreversible.'
At the shareholders' meeting on the 3rd, he named Greg Abel (62), Vice Chairman of the Berkshire Hathaway institutional sector, as his successor.
Buffett, who has led Berkshire Hathaway for 60 years, will hand over the CEO position to Abel on Jan. 1, 2026, but will remain as chairman of the board.
Buffett admitted that after turning 90, he experienced losing his balance while walking and forgetting names.
WSJ reported that 'Buffett is in a position where he cannot read newspaper text properly due to his declining vision.'
Buffett assessed Abel by stating, 'The difference between the amount of work he can accomplish in 10 hours and what I can achieve in the same time is becoming increasingly stark. He was much more effective at getting the job done and excelled in various ways.'
He stated that even after retiring from the CEO position, he would continue coming to work every day, functioning as usual.
Buffett said, 'As far as feeling good every day, my health is fine,' and added, 'I won’t just sit at home watching soap operas after retirement.'
He emphasized, 'Regardless of age, my investment judgment remains intact.'
Buffett reflected, 'I can still make decisions easily today, just as I did 20 years ago, 40 years ago, or 60 years ago.' He noted, 'Even if there's a panic in the market, I am not afraid of price declines or fear. In that regard, I still see myself as a valuable asset.'
Buffett transformed Berkshire Hathaway from a textile company into a global holding company that oversees about 200 subsidiaries in various industries, including insurance, railroads, and energy, after acquiring management rights in 1965.
From 1965 to 2024, Berkshire Hathaway's average annual revenue growth rate reached 19.9%.