The Letter That Changed Wall Street Forever

Warren Buffett, the 95-year-old Oracle of Omaha, delivered his final letter to Berkshire Hathaway shareholders on November 10, 2025, announcing he's "going quiet" as he steps down from the CEO position. The moment investors feared has arrived—not because of catastrophic news, but because of a natural transition that signals the close of arguably the most successful investment career in modern history. Buffett will no longer write the company's annual report or speak endlessly at shareholder meetings, though he plans to continue his annual Thanksgiving message.
This isn't just another corporate succession story. Buffett's shareholder letters have long been considered essential reading for investors worldwide, offering insights into Berkshire's performance, plainspoken wisdom and reflections on business and life. The eight-page farewell message contains far more than numbers—it reveals a philosophy on success, humanity, and the transfer of a $1 trillion empire built on patience and principle.

Why This Farewell Letter Matters to Every Investor

The significance of Buffett's departure extends beyond Berkshire Hathaway's boardroom. Since 1965, the tradition of Buffett's shareholder letters has shaped how generations of investors think about capital allocation, risk management, and long-term value creation. His approach transformed Berkshire from a struggling textile manufacturer into America's ninth-largest company by market capitalization, trailing only technology giants.

Greg Abel, 63, will take the helm as CEO at the end of 2025, with Buffett remaining as chairman. This carefully orchestrated transition raises critical questions: Can anyone replicate the legendary investor's performance?
Will Wall Street grant Abel the same patience it afforded Buffett, particularly given Berkshire's unusual practice of not issuing forecasts or meeting with analysts?

The answers will determine whether Berkshire maintains its premium valuation or experiences a fundamental repricing.

Market reaction suggests uncertainty. Berkshire's Class B shares have gained over 10% in 2025, yet they trail the S&P 500's 16% rise. Since Buffett announced his retirement plans in May 2025, when Berkshire hit an all-time high near $540 per share, the stock has declined, underperforming the benchmark index by significant margins.
This performance gap reflects what analysts call "succession risk premium"—the discount markets apply when legendary leaders depart.

The Man Behind the Numbers: Abel's Credentials

Greg Abel, born June 1, 1962, in Edmonton, Alberta, earned his accounting degree from the University of Alberta in 1984 and began his career at PricewaterhouseCoopers before joining CalEnergy in 1992. His rise through Berkshire's ranks demonstrates operational excellence rather than investment prowess—a distinction that worries some shareholders.

Abel became CEO of MidAmerican Energy in 2008, which was renamed Berkshire Hathaway Energy in 2014, and was appointed vice chairman of non-insurance operations in January 2018. Buffett wrote in his farewell letter: "I can't think of a CEO, a management consultant, an academic, a member of government—you name it—that I would select over Greg to handle your savings and mine".
Buffett added that his children are already 100% behind Abel, as are Berkshire directors.
Yet skepticism persists. As one analyst noted, even if Abel's stock-picking ability doesn't match Buffett's incredible record, Berkshire's operating companies—including BNSF railroad and numerous insurance subsidiaries—will continue producing massive cash flows regardless of who occupies the CEO chair. This operational strength provides a floor for Berkshire's value, even as investment strategy evolves.

The $382 Billion Question: What Happens to Berkshire's Cash Mountain?

Berkshire held $382 billion in cash as of the third quarter of 2025—a staggering sum that exceeds the GDP of many nations. This cash hoard has grown because Buffett, perhaps the world's foremost bargain hunter, has balked at high prices for stocks and companies in recent years, with Berkshire being a net seller of stocks for 12 consecutive quarters.
The cash pile creates both opportunity and pressure for Abel. Between 1965 and 2024, Berkshire averaged a 19.9% compounded annual gain, compared to 10.4% for the S&P 500 with dividends reinvested—most of those gains came from savvy stock purchases, acquisitions, and reinvesting in controlled businesses, not returning capital to shareholders. Abel must decide whether to deploy this capital aggressively or maintain Buffett's patient approach in what many consider an overvalued market.
Speculation has emerged that Abel might institute Berkshire's first-ever dividend, breaking with Buffett's longstanding preference for buybacks. Such a move would fundamentally alter Berkshire's capital allocation strategy and could trigger massive portfolio adjustments among institutional investors who've structured positions around the company's reinvestment model.

Buffett's Final Wisdom: Beyond Balance Sheets

The farewell letter transcends financial analysis, offering principles that apply far beyond trading floors. Buffett opened with rare vulnerability: "Don't beat yourself up over past mistakes—learn at least a little from them and move on. It is never too late to improve". This advice from someone who's made billion-dollar errors reframes failure as education rather than shame.

He continued with moral clarity: "Greatness does not come about through accumulating great amounts of money, great amounts of publicity or great power in government. When you help someone in any of thousands of ways, you help the world. Kindness is costless but also priceless". Buffett specifically reminded leaders that "the cleaning lady is as much a human being as the Chairman"—a statement that challenges corporate hierarchy in an era of widening inequality.

On health and longevity, the 95-year-old noted: "To my surprise, I generally feel good. Though I move slowly and read with increasing difficulty, I am at the office five days a week where I work with wonderful people". This transparency about aging while maintaining productivity offers a counternarrative to forced retirement culture.

Strategic Implications for Forex and Investment Markets

Buffett's retirement creates ripples across multiple asset classes. Berkshire Hathaway now sports a $1 trillion market capitalization, with diverse holdings spanning insurance, railroads, utilities, and manufacturing alongside its equity portfolio. Any strategic shift under Abel's leadership could redirect billions in capital flows, affecting currency markets, sector allocations, and emerging market exposure.

For forex traders, Berkshire's international operations and currency hedging strategies warrant attention. The company reported $331 million in gains on debt held in foreign currencies during the third quarter of 2025. Abel's approach to international expansion and currency risk management could create new trading opportunities, particularly in emerging markets where Berkshire has historically maintained conservative positions.
The broader investment community must reconsider assumptions about value investing's viability. Buffett himself acknowledged: "In aggregate, Berkshire's businesses have moderately better-than-average prospects, led by a few non-correlated and sizable gems. However, a decade or two from now, there will be many companies that have done better than Berkshire; our size takes its toll". This honest assessment contrasts sharply with typical CEO optimism and signals realistic expectations for future performance.

What Abel Must Prove in His First Year

The new CEO faces immediate challenges that will define his tenure. Buffett stated he intends to retain a significant amount of Berkshire shares until shareholders develop comfort with Abel, though he expects this won't take long. This conditional endorsement creates a probationary period where markets will scrutinize every decision.
Buffett described Abel as "a great manager, a tireless worker and an honest communicator," wishing him "an extended tenure". Yet management skills differ from investment genius. Abel must demonstrate he can identify undervalued assets in overheated markets, navigate geopolitical complexity, and maintain the cultural integrity that made Berkshire unique.
Wall Street analysts highlight "historically unique succession risk" that reflects Buffett's unrivaled reputation and Berkshire's inadequate disclosure practices that will likely deter investors once they can no longer rely on Buffett's presence. Abel may need to adopt more conventional corporate communications to satisfy institutional investors accustomed to detailed guidance.

The Two-Year Outlook: Scenarios for Berkshire Investors

Conservative scenario: Abel maintains Buffett's disciplined approach, deploying cash only when genuine value emerges. Berkshire's longer-term track record remains exceptional, with 59.5% total return over three years and nearly 119% over five years. Operating businesses continue generating strong cash flows, supporting gradual stock appreciation as markets recognize fundamental value. Expect annual returns of 8-12%, roughly matching broad market indices.

Aggressive scenario: Abel pursues transformative acquisitions or institutes a dividend, unlocking value trapped in the cash pile. This strategy could drive 15-20% annual gains if execution succeeds, particularly if large-scale investments in emerging technologies or international markets pay off. Risk increases substantially, as mistakes at Berkshire's scale can destroy billions in shareholder value.
Pessimistic scenario: Leadership transition stumbles, with Abel making costly allocation errors or failing to maintain Berkshire's unique culture. The "Buffett premium" evaporates completely, potentially resulting in flat or negative returns over two years despite solid operating performance. This outcome seems least likely given Abel's proven operational track record, but succession failures have destroyed value at other legendary companies.

Conclusion: The End of an Era, Not a Strategy

Warren Buffett is giving away his $149 billion Berkshire estate to family foundations at an accelerated pace while allowing shareholders time to gain confidence in Greg Abel. This gradual wealth transfer ensures Buffett remains aligned with shareholder interests during the critical transition period without creating sudden market disruptions.

The farewell letter represents more than corporate news—it's a philosophical testament from capitalism's most successful practitioner. Buffett encouraged investors to "choose your heroes very carefully and then emulate them," adding: "You will never be perfect, but you can always be better". This final guidance acknowledges human imperfection while championing continuous improvement.

For investors, the Oracle's silence creates both uncertainty and opportunity. Those who understand Berkshire's intrinsic value—diversified operations, fortress balance sheet, and disciplined culture—may find compelling entry points if markets overprice succession risk. Conversely, shareholders expecting Abel to replicate Buffett's legendary returns may face disappointment as market conditions and company scale make such performance mathematically improbable.

The investment world now watches whether Greg Abel can honor the past while building his own legacy. As Buffett himself might say, the best investment is often in people who demonstrate integrity, competence, and humility—qualities Abel must now prove he possesses at the highest level of corporate leadership.

Written by Ethan Blake
Independent researcher, fintech consultant, and market analyst.

November 13, 2025

Join us. Our Telegram: @forexturnkey
All to the point, no ads. A channel that doesn't tire you out, but pumps you up.