Taking everyone by surprise, in conclusion of the famous assembly of shareholders of Berkshire Hathaway, 5e The richest man in the world, Warren Buffett, announced on Saturday that he was leaving the presidency of the company he has run for over 60 years.
Even his successor, Greg Abel, had not been informed of the announcement before the facts.
At 94, the time has come for the investment patriarch to bow out.
In addition to this example of devotion and perseverance, Buffett leaves behind a philosophy that has transformed the world of investment to us.
A world without “oracle”
Even older investors have not experienced a world without warren Buffett.
The one we know as “the Oracle of Omaha” bequeathed to us principles and a vision of finance which are specific to him, and which should inspire us all, whether you have $ 500 or $ 5M in the bank.
- Invested in what you understand. Although some technological modes will have enormously enriching a few, they have also created a lot of losses and bankruptcies. Buffett has always favored businesses like Apple, Coca-Cola or American Express whose business models are simple and proven.
- Think in the long term. Buy actions as if you bought the entire company and became its president, with the intention of keeping them “forever”.
- Looking for value, not popularity. This means investing in solid, profitable, but temporarily neglected companies. We must be interested in companies where we invest, read their financial statements and understand their strategy.
- Remains rational, even when everyone panic. Buffet popularized the formula: “Be greedy when others are afraid, and careful when others are eager». In times of crisis, Buffett saw opportunities where others saw dangers.
- Building on competent and honest leaders. At the time when many business leaders spread their wealth and want to play starsfor Buffett, human quality counts as much if not more than the figures.
What about Quebec?
This retreat marks the end of an era, but also the start of a new chapter for Berkshire Hathaway. With Greg Abel – a Canadian – now at the helm, the company seems ready to continue on the path drawn up by its founder, by maintaining the principles that made its success.
This departure should give rise to a reflection on our own institutions: who are our Quebec buffett? Do we have models of long-term financial continuity and financial wisdom here?
It is difficult not to make links between the wisdom of Buffett and that of our fund managers such as the CDPQ, Investissement Québec or retirement plans. These would benefit from being inspired by more strategies and philosophies close to those of Buffett: buy solid companies, avoid modes, favor value.
Buffett is also a model of humility for Quebec state mandarins: his salary last year was $ 100,000. No bonus. No advantage. On his death, he intended to bequeath 99% of his fortune to charity organizations.
Buffett’s departure is more than a change of guard in Omaha. It is also an invitation to reflect here in Quebec, the way in which we think of the richness, patience and transmission of economic knowledge.
Because even if Omaha’s Oracle disappears, his lessons resonate to us.
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