Warren Buffett Announces Retirement After 60 Years

Warren Buffett, fondly referred to as the "Oracle of Omaha", has long been celebrated as one of the greatest stock market investors alive. At 94, after over 60 years at the helm of Berkshire Hathaway, Buffett announced his retirement this past weekend; he will be stepping down as CEO by the end of the year. His leadership transformed a once-struggling textile company into the trillion-dollar conglomerate it is today. And his personal fortune soared past $100 billion. According to Forbes Magazine, Buffett's net worth is estimated to stand at USD 168.2 billion.

One fun fact I find intriguing is that Buffett started buying shares of Berkshire Hathaway, then a struggling textile manufacturer, in 1962. At the time, the stock was trading at around $7.50 to $8 per share. Buffett’s initial purchase was part of a value investing strategy inspired by his mentor, Benjamin Graham. He noticed that Berkshire’s stock was trading below its working capital per share—essentially, the company’s assets minus liabilities divided by the number of shares. In 1962, Berkshire’s working capital was about $16.50 per share, making the stock a classic "cigar butt" investment (a term Buffett later used to describe cheap but low-quality businesses with a few puffs of value left).

Buffett’s partnership began accumulating shares at this low price, with an average cost around $14.86 per share by the time he took control in 1965, as he increased his purchases over the years while the stock price fluctuated. Fast forward to 60 years later. the closing price of Berkshire Hathaway Class A shares on May 2, 2025, was $809,350 per share. A staggering testament to his disciplined approach, long-term vision and genius in capital allocation.

For individual investors keen on financial literacy, Warren Buffett’s journey offers a treasure trove of lessons. Drawing from his career, discussions around stock market investing and broader insights into his investment philosophy, here are 10 key lessons to guide your path to financial success.

1. Invest for the Long Term: The Power of Patience

One of Buffett’s core principles is his unwavering commitment to long-term investing. He doesn’t chase quick profits or market trends; instead, he holds onto quality companies for decades. Take his investment in GEICO, an insurance company founded in 1951, when Buffett was just 21. He bought shares at $2 during the company’s near-bankruptcy in the 1970s and eventually acquired the remaining 49% in 1996 for $2.3 billion. That stake has since generated over $20 billion in profits for Berkshire Hathaway.

Similarly, his $1.3 billion investment in Coca-Cola in 1988 grew to $25 billion by 2023. The lesson here is clear: focus on businesses with enduring value and let the power of compounding work over time. Don’t get distracted by short-term market swings—patience can turn modest investments into massive wealth.

2. Understand the Businesses You Invest In

Buffett famously avoids investing in companies he doesn’t understand. This principle stems from his mentor, Benjamin Graham, who pioneered value investing. A standout example is Buffett’s 1972 acquisition of See’s Candies for $25 million, a deal championed by his partner Charlie Munger. Buffett recognised the chocolatier’s strong brand loyalty and pricing power, which allowed it to generate over $1 billion in profits with minimal additional capital. For individual investors, this means doing your homework. Research the companies you’re interested in—understand their business models, revenue streams, and competitive landscape. If you can’t grasp how a company makes money, it’s best to steer clear, no matter how hyped the stock might be.

3. Seek Companies with Sustainable Competitive Advantages

Buffett often talks about investing in companies with a "moat", whic means a company that has a sustainable competitive advantage that protects them from rivals. GEICO’s direct-to-consumer insurance model, which eliminated middlemen, gave it a cost advantage that Buffett spotted early on. This moat helped GEICO scale while keeping overheads low, contributing billions to Berkshire’s bottom line. Another example is See’s Candies, whose brand loyalty allowed it to raise prices without losing customers. When evaluating stocks, look for businesses with unique strengths—whether it’s a strong brand, proprietary technology, or a cost structure competitors can’t replicate. These companies are more likely to thrive over the long term, even in challenging economic conditions.

4. Focus on Value, Not Price

Buffett follows Graham’s value investing philosophy, which involves buying stocks trading below their intrinsic value. (Intrinsic value refers to the true worth of a company based on its fundamentals—such as earnings, dividends, future growth potential, and financial health—rather than its current stock market price). His investment in Apple, starting in 2016 with a $31–$35 billion stake, exemplifies this approach. By the end of 2023, that position was worth $173–$174 billion, making it Berkshire’s most profitable investment ever. Buffett saw Apple’s undervaluation relative to its earnings potential and long-term growth.

For individual investors, this means looking beyond a stock’s price tag. A cheap stock isn’t necessarily a good deal if the company lacks fundamentals. Use metrics like price-to-earnings ratios, free cash flow, and growth prospects to assess a company’s true worth, and buy when the market undervalues it.

5. Ignore Short-Term Market Noise

Buffett has a famous saying, paraphrased from Graham: "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." He doesn’t let daily stock price fluctuations or market sentiment dictate his decisions. Whether it’s a market crash or a speculative bubble, Buffett stays focused on the underlying value of his investments. This discipline has allowed him to weather countless economic cycles while growing Berkshire’s portfolio. For you, the lesson is to tune out the noise. Don’t panic-sell during a downturn or jump into a rally out of FOMO (the Fear Of Missing Out). Stick to your research and convictions, and let the market eventually recognise the value of your investments.

6. Prioritize Quality Management

Buffett places immense trust in the people running a company. He evaluates management’s integrity, competence, and alignment with shareholders before investing. His confidence in Apple’s leadership under Tim Cook was a key factor in Berkshire’s massive gains from the stock. Good management can navigate challenges, allocate capital wisely, and drive long-term growth, while poor leadership can sink even a promising business. As an individual investor, dig into a company’s leadership. Read about the CEO’s track record, listen to earnings calls, and assess whether management prioritises shareholders. A company with honest, capable leaders is a safer bet for your portfolio.

7. Keep Debt in Check

Buffett prefers companies that have a low debt-to-equity ratio, which ensures they grow through shareholder equity rather than borrowed funds. This conservative approach reduces risk, especially during economic downturns. When evaluating stocks, Buffett looks at a company’s balance sheet to ensure it isn’t over-leveraged. For example, his focus on companies with strong cash flows, like See’s Candies, allowed Berkshire to profit without constant reinvestment.

For you, this means prioritising companies with manageable debt. Check financial statements for debt-to-equity ratios and interest coverage metrics. A business that can sustain itself without excessive borrowing is better positioned to weather tough times.

8. Invest in Yourself First

Buffett often emphasises the importance of self-improvement. He believes that increasing your knowledge and making prudent financial choices are key to success. His own journey reflects this—he started learning about investing as a teenager and never stopped. This commitment to education allowed him to spot opportunities others missed, like GEICO in the 1950s.

For individual investors, this means dedicating time to financial literacy. Read books on investing (start with The Intelligent Investor by Benjamin Graham), follow market news, and learn to interpret financial statements. The more you know, the better equipped you’ll be to make smart investment decisions.

9. Maintain a Margin of Safety

Another Graham principle Buffett swears by is the concept of a margin of safety—buying stocks at a price that provides a buffer against potential losses. When Buffett bought GEICO shares at $2 during its 1970s struggles, he knew the stock’s intrinsic value was far higher, giving him a cushion if things went wrong. This approach paid off handsomely as GEICO recovered and thrived. For you, this means avoiding overpaying for stocks, even if they seem promising. Calculate a company’s intrinsic value using conservative assumptions, and only buy if the current price offers a significant discount. This buffer protects you from unforeseen risks.

10. Stay Disciplined and Avoid Speculation

Buffett’s disdain for speculative assets is well-documented. He famously called Bitcoin “rat poison squared” and avoided cryptocurrencies entirely during his tenure at Berkshire. Instead, he focused on tangible, profitable businesses like See’s Candies and Coca-Cola, which offered predictable cash flows. This discipline kept him from chasing fads that often lead to losses.

For individual investors, the lesson is to avoid speculative bets, whether it’s a hot new tech stock or a volatile cryptocurrency. Stick to companies with proven business models, consistent earnings, and a clear path to growth. Discipline, not luck, builds lasting wealth.

Putting It All Together

Warren Buffett’s $100+ billion fortune and Berkshire Hathaway’s trillion-dollar valuation weren’t built on chance—they’re the result of timeless principles applied with unwavering discipline. As an individual investor, you can emulate Buffett by focusing on long-term value, understanding the businesses you invest in, and prioritising quality over hype. Start small: pick a few companies, research their fundamentals, and evaluate their management and competitive advantages. Use tools like annual reports, financial statements, and investor presentations to deepen your understanding.

Buffett’s retirement in 2025 marks the end of an era, but his lessons will continue to guide generations of investors. Whether you’re just starting your financial journey or looking to refine your strategy, these 10 principles offer a roadmap to success. Invest wisely, stay patient, and let the wisdom of the Oracle of Omaha light your path to financial literacy and independence.

Warren Buffett's Longterm Holdings

These companies reflect Buffett’s commitment to quality businesses with solid fundamentals and long-term potential. He may continue holding them well beyond the 15-year mark.

1. Bank of America (BAC)

• Initial Purchase: 2011

• Reason for Holding: Strong retail banking operations, valuable deposit base

• Ownership: Over 12%

• Comment: Buffett converted preferred shares and built it into a core financial holding.

2. DaVita Inc. (DVA)

• Initial Purchase: 2012

• Reason for Holding: Leading provider of kidney dialysis services in the U.S.

• Ownership: Around 40%

• Comment: Often overlooked, but Berkshire has held and added to this position for over a decade.

3. Liberty Media / SiriusXM Group (LSXMK)

• Initial Purchase: 2009–2011 range

• Reason for Holding: Strong niche in satellite radio

• Comment: The Liberty-related stocks are complex holdings Buffett has retained for years.

4. U.S. Bancorp (USB) (Trimmed but still held)

• Initial Purchase: Early 2000s, with major activity around 2006–2011

• Reason for Holding: Strong regional bank with solid fundamentals

• Comment: While Berkshire has trimmed its stake, it was held for over a decade.

5. BYD Co. (BYDDY)

• Initial Purchase: 2008

• Reason for Holding: Early bet on electric vehicles and battery technology

• Comment: Buffett’s rare international holding, mainly held by Charlie Munger’s urging.

Recent Buys Likely to Become Long-Term Holdings

These are newer positions that Buffett or his lieutenants (Todd Combs & Ted Weschler) have acquired, and they show characteristics of potential 10–15+ year holds:

1. Apple Inc. (AAPL)

• Initial Purchase: 2016

• Comment: Already his biggest holding and likely to remain for the long term.

2. Occidental Petroleum (OXY)

• Initial Purchase: 2019 (major expansion in 2022)

• Comment: Strategic energy bet with warrants and equity stakes, may be a decades-long hold.

3. Chevron (CVX)

• Initial Purchase: 2020–2021

• Comment: Fits Buffett’s renewed interest in energy; may be held long-term depending on oil trends.