Berkshire Hathaway shares fell on Friday, a day after CEO Warren Buffett left following a 60-year run.
The 95-year-old officially stepped down on Thursday, and successor Greg Abel, who started at Berkshire in 2000 and served as vice chairman of its board of directors, took over on Friday.
In afternoon trading on Friday, Class A shares of Berkshire Hathaway had fallen 1.5% by 3 p.m. ET.
In Warren’s last year as CEO, the conglomerate gained 10.9%, according to CNBC.
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“Berkshire has less chance of a devastating disaster than any business I know,” Buffett wrote in a parting letter to shareholders in November. “And, Berkshire has a more shareholder-conscious management and board than almost any company with which I am familiar (and I’ve seen a lot).”
He added, “Berkshire will always be managed in a manner that will make its existence an asset to the United States and eschew activities that would lead it to become a supplicant. Over time, our managers should grow quite wealthy – they have important responsibilities – but do not have the desire for dynastic or look-at-me wealth.”
On a more personal note, at the end of his lengthy letter, he advised, “Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless. Whether you are religious or not, it’s hard to beat The Golden Rule as a guide to behavior.”
Buffett also praised Abel.
“Greg Abel has more than met the high expectations I had for him when I first thought he should be Berkshire’s next CEO,” he wrote. “He understands many of our businesses and personnel far better than I now do, and he is a very fast learner about matters many CEOs don’t even consider.”
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Buffett added, “I can’t think of a CEO, a management consultant, an academic, a member of government – you name it – that I would select over Greg to handle your savings and mine.”
Buffett plans to remain on as chairman.
Buffett has been preparing Abel to be his successor for years, telling CNBC in 2021, “The directors are in agreement that if something were to happen to me tonight, it would be Greg who’d take over tomorrow morning.”
He announced he would be stepping down at the end of the year in May, telling the crowd at his annual shareholders meeting, “I think the time has arrived where Greg should become the chief executive of the company at year end.”
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The 95-year-old took the reins of Berkshire in 1965 with late business partner Charlie Munger, which at the time was a failing textile company.
The conglomerate is now worth more than $1 trillion and Buffett is worth more than $168 billion, although he still lives in the modest Nebraska home he bought for $31,500 in 1958.
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