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Buffett's Parting Wisdom: Humility and Continuous Improvement
11 Nov
Summary
- Buffett advises choosing heroes carefully and emulating them
- Emphasizes the role of luck and the need for humility
- Cautions against CEOs who aim to retire early or become "look-at-me rich"
As Warren Buffett, the renowned "Oracle of Omaha," prepares to step down as CEO of Berkshire Hathaway, he has shared a final Thanksgiving letter with shareholders. In the letter, Buffett emphasizes the importance of humility and continuous improvement for leaders.
Buffett advises readers to "choose your heroes very carefully and then emulate them," noting that while perfection is unattainable, one can always strive to be better. He reflects on the role of luck in his own life, acknowledging that he was "born in 1930 healthy, reasonably intelligent, white, male and in America," which he describes as a stroke of good fortune.
The 95-year-old Buffett also cautions against hiring CEOs who are motivated by the wrong reasons, such as a desire to retire early or become "look-at-me rich." Instead, he wants Berkshire Hathaway to have only five or six CEOs over the next century, individuals who are committed to the company's long-term success.
Buffett's letter also touches on the importance of recognizing and addressing signs of dementia or Alzheimer's in company leaders, a mistake he admits he and his longtime colleague, Charlie Munger, failed to address in the past. He urges boards and CEOs to be vigilant in this regard.
As Buffett prepares to hand over the reins to his chosen successor, Greg Abel, he expresses confidence in Abel's abilities and the maturity and philanthropic instincts of his own children, who will be responsible for disbursing the family's substantial fortune after his passing.
