Warren Buffett Just Stepped Down as Berkshire's Chairman After Delivering a 19.7% Annual Return Over 61 Years. Should Shareholders Be Concerned?
Warren Buffett's tenure as chairman of the board was fairly short, but he already had a succession plan in place.
Overview
Warren Buffett is 96 years old, noting in a letter to shareholders announcing his departure from Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) that "Father Time always wins." After more than 60 years of leading the business, the transition to new leaders has happened fairly quickly. But it was planned well in advance, so investors probably don't need to be too concerned. Here's why.
Warren Buffett is a cultural icon whose reach has extended far beyond Wall Street. That said, his investment success is legendary, with annualized returns of 19.7% during his tenure at Berkshire Hathaway. With no intention of slighting new CEO Greg Abel, he will never be Warren Buffett. But that's also a fairly reasonable statement, since Greg Abel is a different person. He will put his own imprint on the massive conglomerate that Warren Buffett basically created from the remains of a shirt manufacturer.
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Originally published at www.fool.com.