Led for 60 years, over 60,000x returns! Buffett hands over the reins, successor releases first shareholder letter

Star Capital Bureau, March 1 — On the evening of February 28, Beijing time, “Stock Market Guru” Warren Buffett’s Berkshire Hathaway (hereinafter referred to as “Berkshire”) released its Q4 2025 and full-year financial reports. This is also the last financial report during Buffett’s tenure as CEO of Berkshire Hathaway.

Warren Buffett (photo), courtesy of IC photo

On December 31, 2025, at the age of 95, Buffett officially stepped down as CEO, ending his legendary career spanning over sixty years. The baton was passed to Greg Abel.

Along with the financial report, Berkshire also released its annual shareholder letter. The company’s new CEO, Abel, wrote his first letter to shareholders, introducing Berkshire’s financial status and operational performance.

Data shows that during Buffett’s over 60 years at the helm, he has generated a total return of 6,099,294% for investors. Abel mentioned at the beginning of the shareholder letter that 95-year-old Warren Buffett still serves as Chairman and “works five days a week.”

Buffett “Hands in the Paper”:

Over 60,000 Times Return in 60 Years

The financial report shows that Berkshire achieved total revenue of $371.44 billion in 2025, nearly unchanged from $371.43 billion in the same period last year; net profit attributable to shareholders was $66.97 billion, down from $88.99 billion last year. In Q4 2025, Berkshire posted a net profit of $19.20 billion, a 2.5% decrease from $19.69 billion in the same quarter last year.

Berkshire and its subsidiaries engage in various business activities, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing services, and retail.

A decline in insurance underwriting profit was one of the main factors dragging down Berkshire’s operating profit in 2025. The report shows that Berkshire’s full-year insurance underwriting profit was $7.258 billion, lower than $9.02 billion in 2024; in Q4, it was $1.561 billion, a significant 54% drop from $3.409 billion in the same period last year.

CEO Greg Abel commented on the company’s 2025 performance: “Berkshire’s operating profit in 2025 was $44.5 billion, lower than $47.4 billion in 2024, but higher than our five-year average of $37.5 billion. This result emphasizes the durability of our operations and also highlights room for further improvement.”

He reiterated that due to the frequent annual fluctuations in realized and unrealized investment gains and losses, investors should exercise caution when evaluating Berkshire’s GAAP (Generally Accepted Accounting Principles) net profit. While these gains and losses are important over the long term, operating profit remains the best measure of Berkshire’s annual business performance.

The financial report also disclosed the company’s capital operations and cash flow. Buffett did not conduct any share repurchases in Q4 2025. Despite no buybacks, the company’s cash reserves slightly declined from the record high of $381.6 billion in Q3 to $373.3 billion.

In the capital markets, Berkshire Hathaway Class A shares rose 10.9% in 2025, lagging behind the S&P 500 index’s 17.9% (including dividends), but Buffett has created unparalleled wealth for shareholders during his leadership.

In his first annual letter as CEO, Greg Abel pointed out that since 1965, Berkshire Hathaway’s compound annual growth rate has reached 19.7%, nearly double the S&P 500’s compound growth rate during the same period; during this time, the company’s overall increase exceeded 6,099,294%, while the S&P 500, including dividends, increased by only 46,061%.

Abel Writes First Shareholder Letter:

Core Investment Principles Remain Unchanged

As Buffett’s final financial report, this performance announcement also marks Berkshire’s official entry into the “Abel Era.” The report also included Abel’s first letter to shareholders as CEO.

In this 20-page letter, Greg Abel reviewed Berkshire’s operational gains and reflections in 2025. He also clearly stated that 95-year-old Warren Buffett remains Chairman and “works five days a week.” Buffett continues to provide guidance in insurance, non-insurance operations, and capital deployment, including equity investments.

“The board of directors has appointed me as Berkshire’s CEO, and I am honored. As I write my first annual letter to you, succeeding Warren is both humbling and daunting. Warren is undoubtedly a standard that is hard to match.” Abel wrote.

He reviewed the company’s trust- and integrity-centered corporate culture and pledged to continue the effective management philosophy of the past 60 years: high decentralization, long-term focus, disciplined capital allocation, and a strong emphasis on cash flow safety margins.

Abel acknowledged that as the company grows larger, the marginal diminishing returns of compound interest become an objective reality, which the company has always been aware of; the future core goal is no longer high-speed growth but steady growth in intrinsic per-share value, while actively managing downside risks to protect shareholders’ wealth.

Regarding performance, Abel aimed to reassure investors that Berkshire remains a reliable investment, with core investment principles unchanged. “Investing in Berkshire has long been a trust in our founders — now this trust is placed in Berkshire itself. Your capital and our financial resources are integrated, but they do not belong to us. Our role is that of trustees. This fiduciary responsibility shapes our culture and reinforces a set of values, which are not just the result of success but the reason for success.”

Abel revealed that Berkshire made two new acquisitions in 2025: the chemical company OxyChem and rodent control specialist Bell Laboratories, both considered typical “Warren Buffett-style” long-term businesses.

Data shows Abel joined Berkshire in 2000, and nearly five years before being designated as the next CEO. Charlie Munger, who served as Vice Chairman until his passing in 2023, once said Abel would “uphold the corporate culture,” and Buffett last year also stated that his successor would be a “more proactive” leader.

“We will encounter successes and setbacks in our business. When we fail, we will admit it openly. Doing the right thing also means correcting our mistakes,” Abel wrote. When “a very few” fail to meet standards, the company will act “decisively and without mercy.”

According to First Financial, Abel will host the company’s annual shareholder meeting on May 2, but this event may no longer feature Buffett. “I am honored to take on this responsibility and to continue building the company and deepening partnerships in the years ahead. We will move forward with firm determination and a sense of mission,” Abel wrote.

(This article does not constitute any investment advice; operate at your own risk.)

Editor: Hou Chunping, compiled from Securities Times, China Securities Journal, First Financial, Shanghai Securities News