Retirement for Warren Buffett
07.08.2025Written by: Danka Zakić, PR StandardPrve
Warren Buffett Steps Down: The End of an Era for Berkshire Hathaway
Warren Buffett, the legendary “Oracle of Omaha,” is retiring after more than half a century at the helm of Berkshire Hathaway – surprising his shareholders and marking the end of an era. This 94-year-old investment guru turned Berkshire Hathaway from a struggling textile company into a financial conglomerate worth around $1.1 trillion, with dozens of successful businesses in insurance, rail transport, retail, and other sectors. Under Buffett’s visionary leadership, the company grew into one of the most influential in the world, while he became an investment icon followed by millions across the globe.
A Decades-Long Career and Investment Principles
Buffett’s career spans six decades during which he consistently demonstrated success and stability. Back in 1965, he took control of Berkshire Hathaway – then a failing textile mill – and transformed it into one of the largest and most respected business systems in the world. His simple investment principle remained unchanged: focus on value investing – buying quality companies at a reasonable price and holding those investments for the long term. “Forget buying mediocre businesses at a great price; buy great businesses at a fair price,” Buffett advised – following the maxim of his close partner Charlie Munger. Indeed, over the decades, Berkshire has bought stakes in top-tier brands and held them for years, often for decades. “Our favorite holding period is – forever,” Buffett wrote to shareholders back in 1988, a promise he kept by never selling a single Coca-Cola share since first investing in the company in 1988.
A contrarian at heart, Buffett always emphasized the importance of patience and a cool head in the market. One of his most famous rules is: “Be fearful when others are greedy, and greedy when others are fearful,” pointing out that the best opportunities arise in times of panic. “Bad news is an investor’s best friend,” Buffett wrote in 2008 amid the financial crisis, “because it allows you to buy a piece of the future at a discount.” This very approach – buying when everyone else is selling – allowed Buffett’s conglomerate to withstand numerous recessions and crises, delivering above-average returns for decades. Under Buffett, Berkshire shares achieved average annual returns nearly double those of the S&P 500 index – a testament to the success of his long-term strategy.
The trust and reputation Buffett built over the years became just as important as the financial results. Known for his modesty and integrity, Buffett always emphasized that a company’s reputation must not be compromised. His famous message to the employees of Salomon Brothers investment bank in 1991 during a scandal is well known: “Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.” This stance symbolizes the culture of trust he built over decades – investors knew their capital was in the hands of a man who kept his word and played the long game. That “Buffett premium” of trust sustained Berkshire’s reputation as a safe haven for capital, even in times of market uncertainty.
Market Reaction to His Departure
News of Buffett’s retirement triggered a wave of reactions on the stock market. Berkshire Hathaway shares have dropped 14% since the beginning of May when Buffett announced his decision, while the broader S&P 500 index rose by about 11% during the same period. According to the Financial Times, this is Berkshire’s biggest underperformance compared to the market over such a short period since 1990. Analysts believe the drop was partly caused by the uncertainty – some investors rushed to “exit before Buffett,” wanting to cash in profits before he left the helm. “Buffett’s departure was a shock,” market commentators wrote, pointing out that investors are nervous about what Berkshire’s future will look like without the famous Oracle at the wheel.
Still, despite short-term anxiety, many observers note that Berkshire remains financially strong even after Buffett. Buffett himself will remain as chairman of the company’s board, while his longtime successor Greg Abel takes over as CEO. This brought a sense of calm – Buffett’s presence as a mentor will continue to provide continuity and security to investors. “His continued presence inspires confidence among shareholders – the company will not stray from its path even though the leadership is changing,” notes Kyle Sanders, an analyst at Edward Jones. Indeed, long-term shareholders remind that a quarterly drop is no measure for a company of Berkshire’s caliber – its fundamentals remain strong, and the philosophy Buffett instilled over decades will continue to guide the company forward. In other words, the trust and values on which Berkshire Hathaway was built do not disappear overnight with the departure of one man, no matter how special that man may be.
A Global Icon and a Local Connection
Warren Buffett didn’t inspire just Wall Street – his name echoed even in our parts of the world, sometimes in a very personal way. Miloš Stevanović, a well-known lawyer and investor from Republika Srpska, recalls a unique episode: a personal letter he received from Buffett. Back in 2013, Stevanović decided to write to Buffett, proposing that he and his partners invest about 100 million BAM into a regional insurance company. To his surprise, Buffett kindly replied – thanking him for the offer and explaining that the proposed investment was too small for Berkshire and that they didn’t have enough time or staff to dedicate to it. Although this meant stepping away from the deal, the very response from his investment idol was priceless for Stevanović. He admitted that he was “over the moon for three days” after receiving Buffett’s letter. The original letter is now framed on the wall of his office – a reminder that Warren Buffett’s vision and reputation are an inspiration even to young investors on the other side of the world. This anecdote symbolically connects the local context with a global investment icon, showing just how far Buffett’s influence reaches.
Buffett’s departure from the scene marks the end of an extraordinary chapter for Berkshire Hathaway and financial markets in general. Yet, it is also the beginning of a new era – one in which the legacy of this modest billionaire will continue to live on. As one financial magazine noted, Buffett’s strategies and principles will continue to influence generations of investors to come. In the years ahead, trust, patience, and a long-term vision – the virtues Warren Buffett embodied for decades – will remain a lasting guide to all who aspire to replicate even a fraction of his success.
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