WSJ Interview
Stepping Down as CEO This December... Passing the Baton to Abel
Retaining Chairmanship of Berkshire's Board
"I only started to feel old when I turned 90."
Warren Buffett, the chairman of Berkshire Hathaway and known as the "Oracle of Omaha" (94, pictured), has opened up about his decision to step down from the CEO position this December.
In an interview with the Wall Street Journal (WSJ) on May 14 (local time), Buffett said there was "no special trigger" for his retirement timing. However, he admitted that over the past several years, he has noticeably felt his energy level decline. He said he has occasionally lost his balance and sometimes struggled to recall people's names. At some point, he even found that the newspapers he was reading appeared as if they had been printed with too little ink.
He stated, "Once you start getting old, it's irreversible," adding that this realization became more concrete over the past year and ultimately led to his decision to step down as CEO. This resolve grew stronger as he closely observed Vice Chairman Greg Abel (62). While Buffett, at an advanced age, increasingly felt the effects of aging, Abel approached his work with tireless enthusiasm and delivered remarkable results.
Buffett said, "The gap between the amount of work Abel was able to accomplish and what I could do during our 10-hour workdays kept growing," adding, "He was much more effective at helping people, making the right personnel decisions where needed, and leading the company."
Ultimately, Buffett announced at the shareholders' meeting that he would hand over the CEO position to Abel, the vice chairman of Berkshire's non-insurance businesses, this December.
However, Buffett will retain his role as chairman of Berkshire's board and did not specify when he might step down from that position. He said, "There is nothing seriously wrong with my health, and I still come to the office every day to work with people I like," adding, "My willingness to keep working remains unchanged."
Many had expected Buffett to remain CEO of Berkshire for the rest of his life. However, he said, "I always thought I would only stay in the role as long as I felt I was more useful than anyone else as CEO, and I never expected to hold the position for this long."
Although he is stepping down as CEO, Buffett expressed confidence in his continued investment judgment. He said, "I can make the same decisions now as I did 20, 40, or even 60 years ago," adding, "Even when the market is gripped by fear, I don't feel afraid. Age doesn't matter in that respect."
He also remarked that Vice Chairman Abel, his chosen successor, shares this same temperament. Buffett said, "Abel has a clear sense of where capital should go."
The Abel era will officially begin in about eight months, starting in December. However, Buffett said he will continue to come to the Omaha office and fulfill his role as chairman. "I don't want to sit at home watching dramas all day. My interests remain the same."
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