Buffett Tells Shareholders His Exit Plans

Warren Buffett, the 95-year-old CEO of Berkshire Hathaway, announced Monday in a letter to shareholders that he will be "going quiet" soon, invoking a Britishism to describe his plan for stepping down at the end of the year. And Buffett said he'll end his decades-long tradition of penning annual letters to shareholders. However, he isn't disappearing entirely. Buffett plans to continue sharing a yearly Thanksgiving message and, notably, indicated he will accelerate his philanthropic efforts, aiming to give away his entire $149 billion stake in the company, CNN reports. Buffett, whose folksy wisdom and investment savvy have made him a financial icon, revealed he recently converted $1.35 billion worth of Berkshire shares into the company's lower-priced "B shares" and distributed them to his children's philanthropic foundations.

• Wealth distribution: The move is part of a broader strategy to ensure Buffett's wealth is donated before new trustees take over. He explained the need to "step up the pace of lifetime gifts" to ensure his wishes are carried out. "My children are now at their prime in respect to experience and wisdom but have yet to enter old age," Buffett wrote, per the New York Times. His daughter and two sons range in age from 67 to 72.
• Next CEO: Greg Abel, the current Berkshire's vice chairman for non-insurance operations who was tapped as Buffett's successor in 2021, will take over as CEO. Buffett endorsed Abel, stating the executive has exceeded the high expectations set for him.

• Buffett's health: Offering a health update, Buffett noted that despite some physical slowing and difficulty reading, he still feels good and maintains his routine at the office, where he sometimes makes a contribution.
• Berkshire's health: The company remains strong, with shares up more than 10% this year and the company boasting a $1 trillion market cap, per CNN. Buffett tempered expectations for the future, acknowledging that while Berkshire's businesses have "moderately better-than-average prospects," the company's sheer size may limit its ability to outperform competitors over the long haul. "There will be many companies that have done better than Berkshire" in the coming decades, he wrote.