Warren Buffett says he is “going quiet” — “sort of.” The legendary investor sent one of his famous letters to Berkshire Hathaway shareholders this week as he prepares to retire as CEO at the end of the year and hand the reins to Gregory Abel. Reflecting on his 95 years, he wonders: “Can it be that there is some magic ingredient in Omaha’s water?”
Warren Buffett says he is “going quiet” — “sort of.” The legendary investor sent one of his famous letters to Berkshire Hathaway shareholders this week as he prepares to retire as CEO at the end of the year and hand the reins to Gregory Abel. Reflecting on his 95 years, he wonders: “Can it be that there is some magic ingredient in Omaha’s water?”
Whatever the magic recipe, it created one of America’s most successful entrepreneurs and compelling advocates for free markets. “The center of the United States was a very good place to be born, to raise a family, and to build a business,” he notes. “Through dumb luck, I drew a ridiculously long straw at birth.”
Buffett is humble. He took over a struggling textile manufacturer 60 years ago and turned it into a $1.1 trillion conglomerate that owns such iconic American brands as Dairy Queen, Duracell and Fruit of the Loom. Berkshire also has a $320 billion stock portfolio, which includes sizable holdings in blue clips such as Apple, American Express and Coca-Cola. Combined, these enterprises create millions of jobs globally and help generate immense wealth for shareholders and customers.
Considered one of the best investors of all time, Buffett is retiring with a net worth of around $150 billion. He is the all-American entrepreneur: proud of his achievements, grateful to the systems that allowed them and acutely aware of his ethical responsibilities to give back. Buffett has already donated $60 billion to his philanthropic causes and plans to “step up” his donations by giving away nearly his entire net worth over what remains of his lifetime.
Buffett credits American capitalism with being able to create and generate this kind of wealth. He likened it earlier this year to a “magnificent cathedral” combined with “a casino”: where risks are taken and money is made, but where the basic needs of everyone are still cared for.
Not all Buffett-isms are created equal. The “Buffett Rule,” a tax proposal which became a passion of President Barack Obama’s during the 2012 campaign, risked discouraging investment. His complaints that he paid a lower effective tax rate than his highly-paid secretary made too many people incorrectly think the rich don’t pay much in taxes. Nevertheless, in an era of cronyism and corruption, Buffett’s warnings about fairness and opportunity are as relevant as ever.
This newspaper benefited first-hand from his commitment. Buffett served on the board of The Washington Post Co. for 37 years and was a close confidante to its matriarch, Katharine Graham. His involvement in the company assured that the employees’ pension fund was vastly overfunded. Berkshire Hathaway also owns 10 million shares of Amazon, which was founded by Jeff Bezos, who bought The Post from the Graham family in 2013.
Taking the long view has been key to Buffett’s success. He warns in his letter that his company’s stock has fallen 50 percent or so three times during his 60 years in charge and says it will probably happen again. “Don’t despair: America will come back and so will Berkshire shares,” he writes.
He advises his readers not to beat themselves up over past mistakes but to learn at least a little from them and move on. He urges people to choose their heroes carefully and then emulate them. And he counsels constant kindness, noting that it’s hard to beat the Golden Rule as a guide to behavior.
“I wish all who read this a very happy Thanksgiving,” Buffett concludes. “Yes, even the jerks; it’s never too late to change.”
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