Warren Buffett signals end of era with retirement announcement

Warren Buffett

Berkshire Hathaway CEO Warren Buffett, now 94, has confirmed his retirement plans before the end of 2025 at the closing of Berkshire's 60th milestone annual meeting of shareholders last Saturday in Omaha, which has attended by tens of thousands of devotees whose attendees were more for what would arguably be their lifetime experience since believing that their role model had just performed onstage perhaps for the final time, the Financial Times reported.

Buffett's retirement was timed to a quarterly report of earnings exhibiting further restraint on the part of the "Oracle of Omaha." Berkshire was, for the tenth consecutive quarter, a net disposer of shares, selling $4.7 billion in the first quarter of the year, exceeding the $3.2 billion it laid out on acquisitions. That assisted in driving the conglomerate's cash hoard to an all-time high of $348 billion, reflecting Buffett's restraint during what he views as an unpleasant climate for investments.

"Things get incredibly enticing very rarely," Buffett stated during the meeting's Q&A session. "At some point, we'll be inundated with propositions that we'll be thankful that we have the money for."

A tempered voice in uncertain times

The gathering also constituted Buffett's initial public remarks regarding the economy following President Trump initiating a global trade war by issuing sharp new tariffs. Although treading cautiously and not directly offering political commentary, Buffett expressed unequivocally his disapproval of protectionist policy.

"There's no question that trade can be an act of war," he said. "Trade should not be a weapon. We should be looking to trade with the rest of the world."

His comments resonated in the midst of growing uncertainty in the international economy and mirrored Berkshire's own global aspirations. In recent years, Buffett has diversified Berkshire's portfolio abroad, including a large stake in Japan's five largest trading companies—holdings he indicated he will retain for "the next 50 years."

Profits fall as insurance battered by wildfires

Even with its huge and diversified business conglomerate, covering insurance, railroads, energy, and consumer goods, Berkshire was not spared from the general economic and environmental turmoil of early 2025. Net income declined to $4.6 billion during the first quarter from $12.7 billion in the comparable period a year ago. Buffett has been warning shareholders for years against their reliance on quarterly net earnings because of fluctuations in investment values.

Operating profit, his favourite measure, also fell—$11.2 billion to $9.6 billion. The deficit was mostly due to lower insurance underwriting profits, including a $1.1 billion loss tied to deadly wildfires in California, which charred houses in Los Angeles' most affluent communities.

No buybacks, no big buys—yet

Berkshire's Class A stock has risen 20% this year, finishing Friday at an all-time high of $809,808.50. Nevertheless, Buffett did not approve any share repurchases in the first quarter, emphasising that even Berkshire shares are not discounted sufficiently to justify repurchasing.

Buffett's resistance to unleashing his burgeoning cash hoard has prompted some investors to question when—or if—he will make his next blockbuster deal. Though he has stated Berkshire is poised to move quickly should a worthwhile opportunity present itself, the firm has sat idle with asset prices elevated.

End of an era, beginning of transition

Buffett's exit will officially close a chapter that has made him one of the most powerful business leaders in history. Since he took over Berkshire Hathaway in 1965, he has turned it from a struggling textile firm into a $900 billion conglomerate. His disciplined approach to investing, long-term vision, and homespun wisdom have inspired generations of investors.

Lawrence Cunningham, a governance expert and seasoned Buffett analyst, pointed to the poignancy of the occasion: "He might live till 104 or 110, but actuarial tables would suggest that next year the chance of his not being around will grow and grow."

Buffett would not say when he was leaving, but his message was clear. Mentioning his age several times during the meeting—and sprinkling his remarks with jokes that brought laughter and applause—he appeared both introspective and determined.

As the audience stood for a final round of applause, Buffett left investors with the same clarity and composure that have characterised his half-century at the top: a company with a cash flush, ready to seize opportunity, and ready for a new era.