As Warren Buffett prepares to retire, does his investing philosophy have a future?

Investment legend Warren Buffett, aged 94 and CEO of Berkshire Hathaway, has announced his plan to step down by the end of this year, marking the end of an era for value investing. This strategy involves purchasing quality companies at reasonable prices and holding onto them long-term. Under Buffett’s leadership, Berkshire Hathaway has grown from a small textile business in the 1960s to a conglomerate now valued at over US$1.1 trillion. Buffett’s successful investments include backing American industry in sectors like energy, insurance, and well-known brands like Coca-Cola, American Express, and Apple. At Berkshire’s recent annual meeting, Buffett named Greg Abel as his successor.

Greg Abel, age 62, who currently serves as chairman and CEO of Berkshire Hathaway Energy and vice chairman of the company’s non-insurance operations, will take over as the next CEO and president of Berkshire Hathaway. The company’s board unanimously approved this leadership transition. This change comes amidst significant economic policy shifts with Donald Trump’s return to the US presidency and rising questions about US economic supremacy compared to China’s growth.

Warren Buffett, known as the “Oracle of Omaha,” has been highly respected in the finance world for his investment philosophy rooted in the principles of value investing. He focused on acquiring undervalued companies with strong fundamentals, which led to his success over the years. Buffett’s approach, influenced by economist Benjamin Graham, emphasized long-term investment in businesses with lasting advantages. His successor, Greg Abel, will face challenges in maintaining Berkshire’s values, deploying its substantial capital, adapting to technology trends, and addressing environmental concerns.

The post-Buffett era will test whether Buffett’s timeless principles can endure in a changing world marked by geopolitical risks, technological advancements, and the rise of passive investing. Abel’s leadership will determine the continued relevance of Buffett’s philosophy in navigating today’s complex economic landscape.