Buffett Announces Surprise Exit, Reflects on Legacy \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Warren Buffett announced he will step down as CEO of Berkshire Hathaway by the end of 2024, marking the end of an era in global investing. The 94-year-old billionaire reflected on his most notable wins and mistakes in a legendary career spanning over six decades. Known as the “Oracle of Omaha,” Buffett transformed Berkshire from a struggling textile firm into a financial powerhouse.
Quick Looks
- Buffett to retire as Berkshire Hathaway CEO in 2024.
- Led the company since acquiring it in 1965.
- Transformed it from textiles to global conglomerate.
- Known for value investing and long-term strategy.
- Best investments include Apple, Coca-Cola, and BYD.
- Notable mistakes include Dexter Shoes and early tech misses.
- Insurance float key to Berkshire’s investment power.
- See’s Candy cited as a pivotal acquisition.
- Blue Chip Stamps loss offset by strategic reinvestment.
- Shares now valued at over $800,000 apiece.
Deep Look
Warren Buffett’s decision to retire as CEO of Berkshire Hathaway by the end of 2024 isn’t just a headline—it’s a defining moment in the story of modern investing. At 94, Buffett leaves behind a legacy so deeply woven into the fabric of global finance that it’s hard to imagine Wall Street—or Main Street—without his presence.
This isn’t the retirement of a typical executive. Buffett is the last standing titan from a generation of investors who defined not just strategies, but an entire moral and economic philosophy rooted in patience, discipline, and long-term value. With his exit, the world isn’t just losing a CEO—it’s losing a compass.
From Textile Mill to Conglomerate: Buffett’s Great Reversal
When Buffett acquired a struggling New England textile company called Berkshire Hathaway in the mid-1960s, few could have predicted he would turn it into a global financial empire. The irony? Buffett himself later called it his “worst investment.” The textile business bled money for years before he finally shut it down in 1985.
But what began as a value investment misstep turned into one of the greatest redemption arcs in corporate history. Using Berkshire as a holding vehicle, Buffett built a portfolio of wholly owned businesses and minority stakes in major American companies—laying the blueprint for modern conglomerate investing.
The Insurance Float: Buffett’s Secret Weapon
Central to Berkshire’s success has been its insurance float strategy. By acquiring insurers like National Indemnity, Geico, and General Re, Buffett tapped into an endless stream of low-cost capital. Float—the money insurance companies hold between collecting premiums and paying claims—allowed him to invest billions with minimal risk.
As of 2024, Berkshire’s insurance float stood at a staggering $173 billion, fueling investments across industries and giving the company a war chest of capital that virtually no competitor could match.
This float funded some of his most iconic moves—his positions in Coca-Cola, American Express, Bank of America, and later, Apple—a company he once avoided because he didn’t understand tech. But Buffett came to view Apple as a consumer products giant with unmatched brand loyalty. His investment ballooned from $31 billion to over $174 billion before Berkshire began trimming the position.
The Winners: Buffett’s Greatest Investment Triumphs
Apple: The pivot to Apple signaled a turning point in Buffett’s comfort with tech. Despite his late entry in 2016, the position became one of the most valuable in Berkshire’s history. It was a lesson in humility, evolution, and trusting intuition when valuation aligns with fundamentals.
See’s Candy: Acquired in 1972 for $25 million, See’s was the deal that changed Buffett’s investment philosophy. It was here that he began prioritizing quality businesses with competitive moats, shifting from buying “cheap” to buying “great.” See’s generated well over $1.6 billion in pretax earnings through 2011 alone.
BYD (Build Your Dreams): On Charlie Munger’s advice, Buffett invested $232 million in the Chinese electric vehicle maker in 2008. At its peak, that stake soared to over $9 billion, proving that conviction—combined with trust in visionary leadership—can yield extraordinary results.
Berkshire Hathaway Energy: His $2.1 billion acquisition of MidAmerican Energy in 2000 evolved into a utility powerhouse. With further acquisitions like NV Energy and PacifiCorp, the division now provides more than $3.7 billion in annual profits. Despite concerns about wildfire liabilities, it remains a vital revenue pillar.
The Missteps: Even the Oracle Makes Errors
Buffett is as candid about his failures as he is about his wins—perhaps more so. He’s famously quoted as saying, “You only have to do a few things right in your life so long as you don’t do too many things wrong.”
Dexter Shoe Company: In 1993, he purchased the shoe company for $433 million—in Berkshire stock. Not only did the business fail, but the use of Berkshire shares compounded the mistake. That 1.6% of Berkshire he traded would be worth billions today.
Missed Tech Giants: Buffett has admitted with characteristic humility that avoiding early investments in Amazon, Google, and Microsoft was a major mistake. He often said he didn’t understand the sector, but hindsight showed that a more aggressive approach could’ve added tens of billions to Berkshire’s portfolio.
Selling Banks Too Early: Ahead of the COVID-19 pandemic, Buffett soured on banks. He exited Wells Fargo and JP Morgan at prices that have since doubled. Although he cited scandal fatigue and regulatory risk, the moves underscore how even conservative investors can undervalue resilience in financial stocks.
Blue Chip Stamps: While the customer loyalty business failed, Buffett and Munger used its float to fund acquisitions like See’s, Wesco, and Precision Castparts. It was a failure that seeded future success—a recurring theme in Berkshire’s story.
Beyond Business: The Buffett Ethos
Buffett’s influence isn’t just in his stock picks—it’s in the way he has shaped investor thinking. His mantra: Buy businesses you understand, with solid fundamentals, and hold them forever. In an age of instant trading and meme stocks, Buffett’s philosophy is a stabilizing force.
He also stands out for his extraordinary frugality and humility. Despite being one of the richest men on Earth, he still lives in the Omaha house he bought in 1958. His annual salary at Berkshire? Just $100,000. And through the Giving Pledge, Buffett has vowed to donate more than 99% of his wealth to philanthropic causes.
What Happens Next?
As Greg Abel prepares to take over, all eyes are on how Berkshire Hathaway will adapt. Abel, who oversees Berkshire’s non-insurance operations, is widely respected and already deeply embedded in company culture. But no one—not even Abel—can replicate the institutional knowledge and steady hand Buffett brought to the table.
Still, Buffett’s true legacy isn’t just Berkshire’s $800,000-per-share valuation. It’s the trust he built with investors, the principles he shared with the public, and the sense of long-term stewardship that redefined what business can—and should—be.
As Buffett once said: “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Now, the world watches to see how Berkshire will continue growing in the shade of the tree Buffett spent his life planting.
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