Farewell letter from the “Oracle of Omaha”. Warren Buffett condemns corporate greed

Warren Buffett, the most famous investor in the world, announced that he will “go silent” after resigning from the position of CEO of Berkshire Hathaway at the end of the year.

“As the British would say, 'I'm going silent.' In a sense,” Buffett wrote in a letter to shareholders.

The 95-year-old will step back from day-to-day duties at Berkshire at the end of this year when he retires as CEO.

Buffett said the next annual letter from the company, which is widely followed by legions of retail and institutional investors, will be written by someone else.

Although Buffett will no longer lead the company, he will continue to own a portion of Berkshire's Class A shareswhich give him significant influence over the railroad insurance conglomerate until shareholders get used to his successor, Greg Abel. He will also continue writing to shareholders through annual Thanksgiving letters that focus on his philanthropy.

As the Financial Times reminds us, investors have long viewed Buffett, often called the “Oracle of Omaha,” as a corporate folk hero, interweaving guidance on the performance of his portfolio companies with life and business advice.

Buffett's Monday letter to shareholders was in the same tone, with warnings against corporate greed interspersed with calls for kindness.

For example, he noted that executive compensation disclosure requirements backfired because company executives engaged in a race to earn more than their rivals.

What often worries very wealthy CEOs – they are human after all – is that other CEOs are getting even richer,” Buffett wrote. “Jealousy and greed go hand in hand,” he added.

Buffett also announced in the letter that he had donated 2.7 million Berkshire Class B shares worth about $1.3 billion to four family foundations run by his children. His other recent Thanksgiving letters conveyed similar plans to donate shares to charity.

“FT” recalled that Buffett first pledged to donate all of his Berkshire shares to philanthropic purposes in 2006. Later, along with Bill Gates and Melinda French Gates, he co-founded the Giving Pledge, a philanthropic pledge for the world's wealthiest people to donate more than half of their wealth to charity.

Investors are already intensely focused on Berkshire's succession plan and how it plays out in the coming months. Since Buffett announced plans to step down from Berkshire in May, his Class A shares have fallen about 8%. (PAP Business)

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