At 95, Warren Buffett remains one of the last bastions of capitalism based on patience and value. While the markets ignite at the rate of algorithms and viral tweets, Omaha's Oracle remains faithful to an immutable strategy: investing in what we understand, for the long term. Besides his birthday, this week also marks a page that turns for Berkshire Hathaway.
In short
- Warren Buffett celebrates its 95th anniversary, embodying rare longevity both human and financial.
- It remains faithful to a patient investment strategy, focused on the intrinsic value of companies.
- Buffett does not hide his skepticism towards cryptos and new forms of digital speculation.
- However, his method continues to inspire, including young investors looking for benchmarks.
Warren Buffett at 95: a page turns to the head of Berkshire Hathaway
Warren Buffett officially announced that he would leave his Berkshire Hathaway CEO post by the end of the year, after more than sixty years of uninterrupted direction. An unprecedented longevity in the history of modern capitalism, which gives this transition a considerable symbolic significance.
Since he took control of Berkshire Hathaway in 1965, Omaha's Oracle has made this former textile company a leading conglomerate, whose market capitalization today exceeds $ 870 billion. The announcement of his departure, although predictable, marks the end of an era, both for Berkshire and for the financial markets as a whole.
For several years, Buffett had prepared his succession, with Greg Abel, currently in charge of non-assurance operations, designated as a natural successor. However, the stake exceeds the simple passage of relays. It is the very footprint of Buffett which is in question, he who built his reputation on a prudent, anticyclic and focused management management over several decades. The following elements summarize what makes this transition so notable:
- 60 years of governance without interruption, a record among the major American capitalizations;
- An investment strategy based on the purchase of solid companies, at reasonable prices, and kept in the long term;
- Decentralized management of Berkshire Hathaway, based on the autonomy of subsidiaries;
- Exceptional historical performances: between 1965 and 2023, the Berkshire title generated an average annual performance of +19.8 %, against +9.9 % for the S&P 500 over the same period;
- A public image of rigor, integrity and financial pedagogy, embodied in its annual letters read by millions of investors around the world.
This change of governance, although controlled, puts an end to the era of a man who embodied investment based on common sense and resilience. For markets, it is also a new uncertainty, because if the mechanisms are in place, strategic intuition and moral stature of Buffett are not transferable.
An investment philosophy always as current
Beyond his announced departure, Warren Buffett took advantage of this symbolic step to recall the foundations of his investment strategy, based on simplicity and intellectual rigor.
One of its major principles remains the refusal of the attempt to anticipate the market and irrational speculation.
David I. Kass, professor at the Robert H. Smith School of Business, underlines that “Buffett said that what differentiates investors who succeed from others is the ability to panic when the markets fall, or to become euphoric when they go up strongly”. A principle that he put into practice, especially during the 2008 crisis, when he intervened as a last resort for Goldman Sachs or General Electric.
Buffett philosophy has never been summed up with a list of financial ratios. It is based on a deep understanding of companies, their leadership and their ability to generate value over the long term.
His investment in Apple in 2016, against the advice of many analysts who considered him too far from tech, turned out to be one of the most profitable in his career. “With Apple, Buffett has made the most important gain in its entire career on a single action, with around $ 100 billion returning on investment, and it's not over”Recalls Ardal Loh-Gronger. It is this ability to evolve, without denying its convictions, which explains the continuous relevance of its choices, even in the digital age.
At a time when artificial intelligence, cryptos and automated ETFs redesign the contours of investment, the Buffett approach, focused on intrinsic value, patience and emotional mastery, remains a reliable compass.
The transition announced at the head of Berkshire will probably not change the deeply anchored culture of the company. However, it opens the way to an observation period: how will this giant behave without its emblematic founder? For traditional investors as well as for web3 players, understanding Buffett, it is not to adhere blindly to its choices is to integrate a rigorous methodology that crosses bubbles and cycles.
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