OMAHA, Neb. — Billionaire Warren Buffett warned shareholders Monday that many companies will fare better than his Berkshire Hathaway in the decades ahead because of its massive size though others might say the company’s prospects will dim because “Father Time” is catching up with the 95-year-old icon who plans to step down as CEO in January.
Buffett reflected on life and his health in a new letter to shareholders where he announced $1.3 billion in new charitable gifts to the four family foundations run by his children that — along with the Gates Foundation — have been helping steadily give away his fortune since 2006.
Berkshire is known for consistently outperforming the stock market during the past 60 years under Buffett — which helped earn him legions of fans — although that has become harder to do in recent years because of the huge size of the conglomerate. Berkshire owns Geico insurance, BNSF railroad, several large utilities and a diverse assortment of manufacturing and retail businesses, including such well known brands as Dairy Queen, See’s Candy and Helzberg Diamonds. But Buffett also reassured shareholders that he remains confident in his successor.
Buffett promised to keep in touch with shareholders through Thanksgiving letters in the future, but he confirmed that next year Greg Abel will take over Buffett’s famous yearly letter and answer all the questions at the annual meeting after he becomes CEO in January. Buffett will remain chairman.
Buffett said that “through dumb luck, I drew a ridiculously long straw at birth” by being born in Omaha, Nebraska, where he met many lifelong friends — including several who helped shape Berkshire’s fortune — and both his wives after attending public schools. He said he has been fortunate to have his life saved t