Buffett's layout for Berkshire CEO transition period: donating $1.3 billion, no longer writing annual shareholder letters, retaining a large amount of Class A shares

The Thanksgiving open letter released on November 10, Eastern Time, shows that the 95-year-old "Oracle of Omaha," Warren Buffett, is making final arrangements for his retirement as CEO of Berkshire Hathaway. He will accelerate the transfer of his $149 billion estate to family foundations while retaining enough Berkshire Class A shares to help his successor, Greg Abel, gain shareholder confidence.

In this letter to his children and shareholders, Buffett announced a donation of Berkshire shares worth over $1.3 billion to four family foundations and outlined his personal wealth distribution plan. Buffett plans to convert his 1,800 shares of Berkshire Class A stock into 2.7 million shares of Class B stock, with 1.5 million shares donated to the Susan Thompson Buffett Foundation, named after his late wife, and 400,000 shares each donated to the foundations of his three children—Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.

This Thanksgiving letter is Buffett's first major statement since announcing his retirement as CEO at the shareholder meeting in May this year, signaling the impending end of his 60-year management era at Berkshire.

The 63-year-old Abel will take over as CEO early next year, while Buffett will continue to serve as chairman of Berkshire and intends to maintain the tradition of the Thanksgiving letter to shareholders, but will no longer write the annual report letter for Berkshire or speak at the annual shareholder meeting. The writing of Buffett's annual shareholder letter will be taken over by Abel, who will also preside over the annual shareholder meeting starting next year.

Holding a Large Amount of Class A Shares Until Shareholders Establish Long-Term Confidence in Successor

Buffett emphasized that the accelerated donations do not reflect a change in his outlook for Berkshire, but rather consider the age of his three children, increasing the likelihood of them managing their entire estate before being replaced by new trustees. He also made it clear that he will retain a large amount of Class A shares "until Berkshire shareholders establish the kind of long-term confidence in Greg that Charlie and I have enjoyed."

Buffett explicitly endorsed Abel in the letter. He wrote:

“It won’t take long to reach that level of confidence. My children are 100% supportive of Greg, and so are the Berkshire directors.”

Abel currently serves as Vice Chairman of Berkshire's non-insurance operations. Based on his holdings at the end of the second quarter, Buffett owns approximately $149 billion worth of Berkshire shares, making him the company's largest shareholder. Most of his wealth is held in original Class A shares, which currently trade at about $751,500.

Feeling Healthy, Berkshire's Fortress Remains Strong

Buffett rarely disclosed his health status in the letter. He wrote:

“To my surprise, I feel good overall. Although my movements are slow and reading is becoming increasingly difficult, I work in the office with excellent people five days a week. My aging has come late... and once it appears, it cannot be denied."

Buffett spent some time in the letter reiterating Berkshire's durability, stating that the company can withstand the impact of almost any economic environment. He wrote:

"The likelihood of a catastrophic disaster at Berkshire is lower than any company I know."

The financial report released earlier this month shows that Berkshire's core business remains strong, with operating profit in the third quarter increasing by 34% year-on-year. As of the end of September, Berkshire held a record $381.7 billion in cash, highlighting its unparalleled balance sheet and cautious investment strategy. The company has net sold stocks for 12 consecutive quarters, reflecting Buffett's prudent attitude in a high-valuation market.

However, Buffett acknowledges that Berkshire's massive scale is both an advantage and a limitation. He wrote, "Overall, Berkshire's business outlook is slightly better than average, led by several unrelated large-quality assets. But in the next one or two decades, many companies will outperform Berkshire, and our size will come at a cost."

Berkshire's stock price has risen about 10% year-to-date in 2025, outperforming many defensive stocks, but lagging behind the S&P 500 index in the tech-led rebound. Buffett stated in the letter, "Our stock price will fluctuate erratically, occasionally dropping by around 50%, which has happened three times during the current management's 60-year tenure. Don't despair; America will recover, and Berkshire stock will too."

Accelerating Charitable Efforts

Buffett began donating to the Gates Foundation and foundations related to his children in 2006, later initiating the "Giving Pledge" with Bill and Melinda Gates, aiming to donate all his wealth during his lifetime or at death. Last year, Buffett announced that the Gates Foundation would no longer receive donations after his death, with a new charitable trust overseen by one of his daughters and two sons.

In the letter, Buffett wrote that he would continue to communicate with shareholders through traditional Thanksgiving letters. "Berkshire's individual shareholders are a very special group, unusually generous in sharing their profits with those less fortunate," he wrote, "I enjoy the opportunity to stay in touch with you."

Since taking over Berkshire in 1965, Buffett has transformed a struggling textile factory into a $1 trillion diversified conglomerate, with businesses spanning insurance, railroads, utilities, and consumer brands. His annual shareholder letters have become must-reads on Wall Street for decades