Buffett explains his "retirement" decision: I began to occasionally lose balance, and sometimes even forget a person's name.

Warren Buffett admitted that the impact of age ultimately prompted him to decide to hand over management of Berkshire Hathaway to Greg Abel.

Written by: Bao Yilong

Source: Wall Street Journal

Buffett admitted that the impact of age ultimately prompted him to decide to hand over the management of Berkshire Hathaway (Berkshire Hathaway) to Greg Abel.

On May 14, Berkshire Hathaway Chairman and CEO Warren Buffett stated in an interview with The Wall Street Journal: "I don't know why, but I didn't really start feeling old until around 90, but once you start to feel old, that change is irreversible."

Buffett has reportedly noticed that he occasionally loses his balance and sometimes has trouble remembering someone's name. Suddenly, the newspaper he was reading looked like it was running out of ink. These feelings coalesced into a decision over the past year, culminating in the announcement at Berkshire's annual meeting on May 3 that he would step down as CEO in December and be replaced by Abel, a news that shocked the investment community at the time.

Buffett said, "True talent is extremely rare, rare in the business field, rare in capital allocation, and rare in almost all human activities. To be honest, it is unfair not to promote Abel to this position (CEO); the longer Berkshire benefits from Abel, the better."

Buffett praised Abel as both a manager and a trading facilitator: "The difference in energy levels and amount of work accomplished during his 10-hour workday compared to my performance is becoming increasingly apparent. He is more efficient in completing tasks, managing adjustments, and helping those in need."

62-year-old Abel joined the group in 1999 through Berkshire's investment in MidAmerican Energy, a utility company in Des Moines, Iowa. In 2018, Buffett promoted Abel to Vice Chairman, responsible for all non-insurance businesses of Berkshire. By 2021, he had become Buffett's chosen successor as CEO.

Passing the baton but not retiring: Buffett's version of a "semi-retirement" life

Buffett emphasized that although his time as CEO is coming to an end, he plans to continue working.

"My health is good, I feel fine every day," he said, "I am in the office, working with the people I love, and they like me quite a bit too, we get along very well."

"I won't sit at home watching soap operas," he said with a smile, "my interests remain the same."

The Abel era will begin in less than eight months. And when that moment arrives, Buffett will not go far - he plans to continue going to his office in Omaha and continue serving as chairman.

Buffett acknowledges that aging has weakened some of his abilities, but he states that he still possesses perhaps the most valuable and rare gift as an investor: "I have no difficulty making decisions, whether it's something I decided 20 years ago, 40 years ago, or 60 years ago. If the market panics, I can still be of use because when prices drop or others feel panic, I am not afraid, and that really has nothing to do with age."

Recently, Berkshire's vast cash and treasury bond reserves have been increasing, attracting external attention, and people are wondering where the company will trade next. Buffett said, "Abel will have ideas on where the funds should be directed."