Warren Buffet to Retire — Berkshire Hathaway Investors in Mourning

Warren Buffett is retiring. He made the announcement at the end of the annual Berkshire Hathaway shareholders’ meeting.

On Monday, the Berkshire Hathaway board of directors named Buffett picked successor, Vice Chairman Greg Abel as the company president. At the same meeting, the board refused to let Buffett walk and voted to keep him as chairman of the board. 

At 94 it ought to be no surprise to anyone that Buffett is retiring. Still, the shockwaves of Buffett’s announcement at the recent shareholders meeting are not just reverberating through Berkshire Hathaway. They’re being felt in financial boardrooms nation and worldwide.

His vision, and business acumen, turned Berkshire Hathaway from a struggling textile company in 1970 to a 70 company conglomerate housing 189 businesses that has averaged a nearly 20% profit each year since.

Those businesses include the insurer, GEICO, several utility companies, the BNSF railroad and retail companies like Dairy Queen, Fruit of the Loom and See’s Candies.

Berkshire Hathaway is valued at somewhere around $1.16 trillion. The firm has $264 billion in stocks and $348 billion in cash on hand. The Class A shares run somewhere between $750,000 each and $770,000. The more affordable Class B shares can be picked up for $530 apiece.

Both stocks dropped after Buffett made his announcement last week.

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