Author: Bao Yilong,Wall Street Observer

Buffett openly acknowledged the impact of age, ultimately leading him to decide to transfer the management of Berkshire Hathaway to Greg Abel.

On May 14, Buffett, chairman and CEO of Berkshire Hathaway, told the Wall Street Journal: "For some reason, I didn't really feel old until I was about 90, but once I started aging, the change became irreversible."

According to reports, Buffett noticed that he occasionally lost his balance and sometimes had difficulty recalling someone's name. Suddenly, the newspaper he read seemed to have insufficient ink. These feelings culminated in a decision over the past year, which he finally announced on May 3 at the Berkshire annual meeting, stating that he would step down as CEO in December, with Abel taking over. This news shocked the investment community at the time.

Buffett said: "True talent is very rare, both in business and in capital allocation, and in almost all human activities. Honestly, it would be unfair not to put Abel in this position (CEO), and the longer Berkshire benefits from Abel, the better."

Buffett praised Abel as both a manager and a dealmaker: "The difference in energy levels and work completed within 10 hours during the workday between him and my performance is becoming increasingly obvious. He is more efficient in completing tasks, managing adjustments, and helping those in need."

Abel, 62, joined the group in 1999 through Berkshire's investment in MidAmerican Energy, a utility company in Des Moines, Iowa. In 2018, Buffett promoted Abel to vice chairman, responsible for all non-insurance businesses of Berkshire. By 2021, he had become Buffett's chosen successor as CEO.

Handing Over But Not Retiring: Buffett's "Semi-Retirement" Life

Buffett emphasized that although his CEO era is about to end, he plans to continue working.

"My health is good, and I feel fine every day," he said, "I am in the office, working with people I love, who also like me, and we get along well."

"I won't sit at home watching soap operas," he laughed, "My interests remain the same."

The Abel era will begin in less than eight months. When that moment arrives, Buffett will not be far away—he plans to continue going to his office in Omaha and continue serving as chairman.

Buffett admitted that aging has weakened some of his abilities, but he said he still possesses the most precious and rare talent as an investor: "I have no difficulty making decisions, whether it's something I decided 20, 40, or 60 years ago. If the market panics, I can still be useful because when prices fall or others panic, I don't fear it, and this has nothing to do with age."

Recently, the growing cash and Treasury reserves of Berkshire have attracted attention, with people wondering where the company will make its next move. Buffett said, "Abel will have ideas on where the money should be invested."