Valuable Advice from Warren Buffett to Shareholders

Warren Buffett Publishes Last Letter to Berkshire Hathaway Shareholders

Berkshire Hathaway (NYSE: BRK, BRK.B) CEO Warren Buffett called upon the company's "extraordinarily generous" shareholders to act kindly and respectfully in an increasingly greedy world in his weekend letter to shareholders.

Buffett wrote, "Greatness does not come from large amounts of money, substantial public exposure, or accumulating considerable power in government. When you help someone, you also help the world. Being kind is costless, yet it is also priceless. It does not matter whether you are religious or not; it is difficult to exceed the Golden Rule in shaping your behavior."

Over the years, Buffett has been known for giving life advice through letters to shareholders, not only as a successful businessman but also as someone who has learned the secrets to leading a better life.

"I write this as someone who has acted carelessly countless times and made many mistakes, but I have also been lucky enough to learn to behave better from some wonderful friends (I am not perfect yet, however)," he added. "My advice: Do not judge yourself for past mistakes; at least learn some lessons from them and move on. It is never too late to improve. Choose the right heroes and copy them. You can start with Tom Murphy; he was the best."

Tom Murphy spent several decades as the CEO of Capital Cities Communications and played a significant role in the publisher’s merger with ABC and ultimately its merger with Disney (NYSE: DIS). A close friend of Buffett, Murphy served on the Berkshire Hathaway board until he stepped down in 2022 to fight COVID. He passed away that year.

Buffett's letter to shareholders coincides with a transitional period in his career. In May, he announced that he would step down as CEO of Berkshire Hathaway by the end of the year, designating his longtime deputy Greg Abel as his successor.

“Throughout the year, I will continue to talk with you and my children about Berkshire through my Thanksgiving message,” Buffett said, adding, “Berkshire's individual shareholders are an extraordinarily generous group when it comes to sharing their earnings with those less fortunate. I love the opportunity to stay in touch with you.”

At 95 years old, Buffett has long surpassed the traditional retirement age. While he stated, "I generally feel good," he admitted that physical decline has pushed him to step back. "When you have a continuous decline in balance, vision, hearing, and memory, you know that Father Time is not far away," he wrote.

While age may impact his ability to work long hours throughout the week, he emphasized that his level of wisdom has only increased. "Choose your heroes carefully and then emulate them. You will never be perfect, but you can always be better," he concluded his letter.