Warren Buffett Will No Longer Be Writing Berkshire's Annual Report Or 'Talking Endlessly' At Annual Meeting: 'I'm Going Quiet'

• Buffett highlighted that he will hold on to a “significant” amount of the company’s Class A shares of Berkshire Hathaway until shareholders are confident in incoming CEO Greg Abel’s abilities.
• He added that Abel understands the risks involved in the personal and casualty insurance business better than many long-time executives in this segment.
• Buffett added that among the businesses that he’s familiar with, Berkshire has the “more shareholder-conscious management and board.”

Berkshire Hathaway Inc.’s (BRK.A, BRK.B) outgoing CEO, Warren Buffett, on Monday released a Thanksgiving letter as he prepares to hand over the reins of the company to incoming chief Greg Abel.

Buffett said that he will no longer be writing Berkshire’s annual report, nor would he be “talking endlessly” at the company’s annual shareholder meeting. “As the British would say, I’m ‘going quiet.’ Sort of,” he stated in the letter.

He also reaffirmed his belief in Abel, stating that he is a “great manager, a tireless worker, and an honest communicator.”

BRK’s Berkshire’s Class A shares were marginally up by 0.1% in Monday’s midday trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Confidence In Abel

While Buffett expressed his confidence in Abel, he added that he will hold on to a “significant” amount of the company’s Class A shares until Berkshire shareholders are confident in Abel’s abilities.

“That level of confidence shouldn’t take long. My children are already 100% behind Greg, as are the Berkshire directors,” Buffett stated.

He added that Abel understands the risks involved in the personal and casualty insurance business better than many long-time executives in this segment. “With a little luck, Berkshire should require only five or six CEOs over the next century. It should particularly avoid those whose goal is to retire at 65, to become look-at-me rich or to initiate a dynasty,” Buffett said.

Berkshire’s Prospects

Buffett added that Berkshire has less chance of a “devastating disaster” than any business he knows. “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,” he said.

Buffett added that among the businesses that he’s familiar with, Berkshire has the “more shareholder-conscious management and board.” He also believes that the company will always be managed in a way that makes it an asset to the U.S.

The legendary investor also provided a piece of advice for his readers. “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. Get the right heroes and copy them. You can start with Tom Murphy; he was the best.”

BRK-A stock is up 10% year-to-date and 8% over the past 12 months.

Also See: Exclusive: Abacus Global CEO Jay Jackson Eyes Billions In AUM, Explains How The Company Plans To Bridge The Valuation Disconnect

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