What Warren Buffett’s farewell letter means for Berkshire Hathaway investors

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Back on May 3, 2025, Warren Buffett announced he would be retiring as CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) at the end of the year. With the end of 2025 quickly approaching, investors have been wondering just what Buffett’s role will be starting next year, as well as the implications for Berkshire Hathaway as an investment.

Will Buffett still influence the investing decisions of incoming CEO Greg Abel? Will he write the annual letter? Will he still participate in the annual meeting, which has become known as “Woodstock for capitalists”? And for investors, will Berkshire continue to be a wise addition to their portfolio?

Just the facts

Fortunately for those of us who dislike uncertainty, Buffett wrote a letter to shareholders through Berkshire’s corporate website on Nov. 10, 2025, and let us know some of what the future holds for Berkshire. Buffett opened by telling us he would be “going quiet” and would no longer write the annual shareholder letter, which dates back to 1977.

He also said he would no longer “talk endlessly at the annual meeting,” which is usually held the first weekend in May. Greg Abel, the incoming CEO, will now preside over the meeting, which attracted nearly 20,000 shareholders and devotees in person in Omaha in May. There was good news, though, for those of us who can’t get enough of the Oracle of Omaha: Buffett said that he does plan to communicate with his followers via an “annual Thanksgiving message,” which he started in 2024.

For those of us who had no problem with Buffett talking endlessly or who don’t like change in general (count me in both of those camps), this letter was a hard pill to swallow. Buffett — who is 95 — saying he was “going quiet” also has a final tone to it.

However, Abel and Buffett have been working together for the better part of two decades now, so it is reasonable to assume many aspects of running the Berkshire conglomerate will remain the same. In fact, Abel has indicated that he does not plan to materially change either the investing philosophy or the allocation of Berkshire’s capital.

The second annual Thanksgiving letter (here’s to hoping this goes for at least another decade) included a nice history of Buffett’s childhood in Omaha, where he mentioned purchasing his “first and only home” back in 1958, and, “in the 1990s, Greg lived only a few blocks away from me on Farnam Street.” Thinking long term and developing deep, meaningful relationships are part of Buffett’s DNA. Buffett also mused in this letter about whether there might be “some magic ingredient in Omaha’s water.”

Any investment insight?

Many of us are on the lookout for investment opportunities in Buffett’s communications. This one was admittedly scant on ideas outside of Berkshire stock. Buffett did indicate he plans to keep a large amount of the Class A Berkshire shares (which carry voting rights) until shareholders are confident that Abel is the right man for the job. Berkshire also owns large stakes in big tech companies, including Apple and a recent position in Alphabet. Berkshire remains one of the best ways to obtain broad, diversified exposure to the best corporations America has to offer. The Alphabet investment could also indicate a growing interest in tech stocks, as opposed to Buffett’s hesitation to fully embrace the technology space.

Buffett indicated that he hopes Abel will remain Berkshire’s fearless leader for at least “several decades,” and that, ideally, Berkshire might need only five or six CEOs over the next century. He opined that, in total, “Berkshire’s businesses have moderately better-than-average prospects,” but its size remains a hindrance to outperforming the market to the degree it did when Berkshire was a much smaller company.

The future looks bright

However, the bottom line is that “Berkshire has less chance of a devastating disaster” than any other business he can think of. Buffett also suggested that Berkshire, like any stock, could once again fall by around 50% one day, which has occurred three different times in Buffett’s 60-year tenure. This volatility is always a possibility, despite humans’ best efforts, when investing in the stock market.

To me, this speaks to the stability of Berkshire’s stock in times of stress. One could argue that speculation and greed are high in the market right now — given the ambitious artificial intelligence (AI) buildout, the thousands of cryptocurrencies in existence, less regulation and financial oversight than at times in the past — but Buffett has undoubtedly constructed a company that is built to last well beyond him. If this is going quietly, I’m all for it.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What Warren Buffett’s farewell letter means for Berkshire Hathaway investors appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Ryan Fuhrmann has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, and Berkshire Hathaway. The Motley Fool Australia has recommended Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.