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Buffett cites age-related physical challenges as reason for retirement.
He remains mentally sharp and plans to continue investing actively.
Berkshire Hathaway has grown to over $1 trillion under Buffett’s leadership.
At 94, billionaire Warren Buffett shocked investors by announcing his retirement as CEO of Berkshire Hathaway, passing the role to Greg Abel by year’s end. In a Wall Street Journal interview, the legendary investor, who led the company for 60 years, cited the physical toll of ageing as the reason for stepping down.
“There was no magic moment. How do you know the day that you become old?”, Mr Buffett told The Wall Street Journal. “I didn’t really start getting old, for some strange reason, until I was about 90, but when you start getting old, it does become – it’s irreversible,” he added.
He revealed that heartbreaking moments like losing his balance, forgetting names, and struggling to read newspapers prompted his decision to retire as Berkshire Hathaway’s CEO. The 94-year-old noted that he and his successor, Greg Abel, were operating at different speeds, with his own pace slowing due to age.
“The difference in energy level and just how much he could accomplish in a 10-hour day compared to what I could accomplish in a 10-hour day—the difference became more and more dramatic. He just was so much more effective at getting things done, making changes in management where they were needed, helping people that needed help somewhere, but just all kinds of ways,” he admitted.
Despite his physical challenges, Mr Buffett emphasised that he remains mentally sharp for investment decisions. The 94-year-old value investing legend, known for capitalising on market turmoil and low prices, plans to continue making significant purchases when opportunities emerge, even after stepping down as Berkshire Hathaway’s CEO.
“I don’t have any trouble making decisions about something that I was making decisions on 20 years ago, or 40 years ago or 60 years ago. I will be useful here if there’s a panic in the market because I don’t get fearful when things go down in price or everybody else gets scared. … And that really isn’t a function of age,” he told the Journal.
He shared that he feels good daily and enjoys working with loved colleagues at Berkshire Hathaway’s Omaha office. He dismissed a sedentary retirement, stating, “I’m not going to sit at home and watch soap operas… My interests are still the same,” signalling his intent to stay engaged in investing.
Berkshire Hathaway, a former small textile company, has grown over the years into a gigantic conglomerate under Buffett’s leadership, and is now worth over $1 trillion on Wall Street — a first for an American group outside the tech sector. Today, his conglomerate owns dozens of businesses, from Duracell batteries to US insurer Geico, and shares in carefully selected companies, from Coca-Cola to Bank of America.
