After six decades at the helm, Warren Buffett has handed over the CEO reins to Greg Abel.

From 1964 to 2024, Berkshire Hathaway achieved an annualized compound return of 19.9%, nearly double the S&P 500's annualized return of 10.4%.

As Buffett steps down, investors are increasingly focusing on the unique qualities that may fade with his departure.

The guiding light of the investment world is beginning to dim.

After sixty years of leadership, Buffett transformed a little-known textile manufacturer into one of the most powerful compounding engines in market history. While he remains Chairman of Berkshire Hathaway, he has now passed the chief executive role to Greg Abel. This transition prompts investors to ponder the unique elements of his extraordinary success.

In the mid-1960s, when Buffett took control of Berkshire, its share price was approximately $19 per share. By the end of 2025, the price of a single Class A share had surpassed $750,000.

According to the company's latest annual report, from 1964—the year before Buffett officially gained control—to 2024, this unique conglomerate delivered an annualized compound gain of 19.9%. This is nearly double the 10.4% annualized return of the S&P 500, resulting in an overall gain exceeding 5.5 million percent. In 2025, the company's stock price climbed an additional 10% on top of this record.

This stellar performance stems from an exceptionally simple set of investment principles: utilizing insurance float as a low-cost source of capital, acquiring businesses with stable cash flows, and then allowing time to work its magic. Through this strategy, Berkshire has maintained long-term holdings in companies like Coca-Cola and American Express, while simultaneously expanding its operations into railroads, utilities, and manufacturing through wholly-owned subsidiaries.

"If this method were truly so easy to replicate, someone would have done it by now," said Bill Stone, Chief Investment Officer at Glenview Trust Company and a Berkshire shareholder. "Consider the golden partnership with Charlie Munger—a combination like that is unlikely to be seen again anytime soon."

As Buffett relinquishes his command, investors are paying closer attention to the qualities that may disappear with him. Seth Klarman, founder of The Baupost Group, called Buffett "an American exemplar" and suggested his retirement represents more than just a change in leadership.

"Berkshire Hathaway without Warren Buffett at the helm will be a different proposition for the entire investment world," Klarman wrote in a tribute.

Fading from the Limelight Buffett has indicated that in retirement, he will "fade from the limelight." This means that although he retains the Chairman title, his public visibility will decrease. Abel will take over the writing of Berkshire's annual shareholder letter—a tradition Buffett started in 1965. These letters, known for their plain-spoken wisdom on markets, management, and capital allocation, have become essential reading on Wall Street. However, Buffett will continue to write a Thanksgiving message to shareholders.

Buffett's influence stems partly from these annual letters and partly from Berkshire's annual shareholder meeting. Often dubbed "Woodstock for Capitalists," this event draws tens of thousands of investors to Omaha each year for a marathon, unscripted Q&A session. It has cemented his status not only as a master capital allocator but also as a trusted public voice for investors—someone whose perspective is sought to provide clarity during times of market turmoil.

Buffett also eschewed many Wall Street conventions. Berkshire's stock has never split, a practice intended to discourage speculation and cultivate a shareholder base focused on decades, not quarters. The company does not provide earnings guidance, grants significant autonomy to its operating managers, and has always centralized final capital allocation decisions at its Omaha headquarters.

"As Chairman, Warren will serve as an advisor to Greg, an anchor for the company culture, and a truly long-term thinker," said Ann Winblad, Managing Director at Hummer Winblad Venture Partners and a long-term Berkshire shareholder. "Will the core strategy change fundamentally? The answer is no. The Berkshire I invested in is built on a core culture of patient, long-term, prudent, and decisive investment thinking—a culture that is highly likely to endure."

By the end of last September, Berkshire held a record $381.6 billion in cash. This massive hoard underscores the company's formidable financial strength but also reflects the cautious stance Buffett has maintained in a market where valuations are high. Furthermore, Berkshire has been a net seller of equities for 12 consecutive quarters—a rare and sustained pattern of divestment that highlights the difficulty of finding sufficiently attractive investment opportunities at the company's current scale.

Shareholder attention is gradually shifting to the less-defined aspects of the succession plan: the fate of the $300 billion stock portfolio. Currently, no obvious internal successor possesses a public market investment track record comparable to Buffett's. Some analysts suggest that, given the portfolio's immense size and highly concentrated nature, Berkshire may ultimately scale back its active stock-picking activities.

Buffett himself has repeatedly cautioned shareholders not to equate stock price volatility with business failure.

"Our stock price will experience significant and unpredictable fluctuations," he wrote in a letter. "During the 60 years of the current management, there have been three occasions where the price declined by approximately 50%. But do not lose heart—the American economy will eventually recover, and Berkshire's stock price will recover along with it."