Warren Buffett Steps Down as Berkshire Hathaway CEO, Greg Abel Takes Over

Warren Buffett's remarkable investment longevity is marked by an average annual return of nearly 20% over six decades, significantly outperforming the S&P 500. Key to his success is his disciplined approach of investing within his "circle of competence," focusing on understandable businesses with favorable long-term prospects, competent management, and attractive prices, along with a preference for holding investments indefinitely. As Buffett plans to step down as CEO of Berkshire Hathaway, his legacy includes astute investments such as the Chinese electric vehicle company BYD, which has outperformed Tesla and grown exponentially since Berkshire's purchase in 2008. Buffett's adherence to value investing principles and patience during market fluctuations underscores his philosophy that the market transfers wealth from the impatient to the patient. His investment strategy has inspired others, such as British investor Terry Smith, who follows a similar approach of concentrating on high-quality companies with strong market positions and cash flows. Additionally, Buffett's portfolio includes companies with unique business models that generate diverse revenue streams, exemplifying his preference for durable and well-managed businesses.