Warren Buffett turned 95 today, and this year will also be his last as CEO of Berkshire Hathaway. When he steps down in December 2025, it will close an era that began in 1965, when a young Buffett took charge of a failing textile mill and slowly turned it into a $1 trillion global powerhouse.
For most people, retirement comes at 60 or 65. For Buffett, it comes three decades later. The big question is, why did he hold on for so long?
Building Berkshire Hathaway
Buffett’s story with Berkshire began when it was a struggling textile business. Over six decades, he transformed it into a conglomerate with investments in insurance giants like GEICO, railroads like BNSF, utilities, consumer brands, and even tech.
His investment style, buying undervalued companies with strong competitive advantages and holding them for the long term, became legendary.
Under his leadership, Berkshire delivered average returns of nearly 20% a year, almost double the S&P 500. Insurance “float” gave him cheap capital to reinvest and improve more growth. Simply put, Buffett turned patience and discipline into one of the most successful investment records in history.
For Buffett, being CEO was not just a job; it was his passion. He often said he felt “lucky to tap dance to work every day.” The act of reading, thinking, and making investment decisions energised him.
While most people slow down with age, Buffett thrived. Blessed with good health and a sharp mind well into his 90s, he saw no reason to step aside. Work gave him purpose, kept him mentally sharp, and made him feel relevant.
For decades, Buffett felt no one could manage Berkshire quite like him. His skill in allocating capital and his partnership with Charlie Munger made him unique. Together, they built a culture of discipline and long-term thinking that investors trusted.
As long as he was able to deliver results, Buffett saw little benefit in leaving early. His late exit shows why succession planning is vital for big companies. Buffett’s careful handover to Abel ensures Berkshire’s stability while preserving the culture he built.
Careful exit planning
Even so, Buffett always had one eye on the future. In 2021, he named Greg Abel, head of Berkshire’s non-insurance businesses, as his successor. By 2025, Buffett felt the timing was right: the company had a trusted leader ready, and he himself felt it was finally time.
Markets reacted with nerves. Berkshire shares dropped more than 10% after the retirement announcement, showing how closely investors tied the company’s value to Buffett himself, a phenomenon often called the “Buffett premium.”
Still, he leaves behind clear guidance on which stocks Berkshire should hold indefinitely and a culture strong enough to outlast him. Buffett once said, retirement is a “gut feeling”. For him, that feeling didn’t arrive until ’95, and only then was he ready to let go.