Over his nearly 70-year career, Warren Buffett’s name has become synonymous with investing, and a day before the Berkshire Hathaway Inc. CEO turned 95, an investment expert joined BNN Bloomberg to discuss his life and legacy.
“It was back in 1956 at the young age of 25 that Buffett started investing professionally,” Robert Gill, portfolio manager at Fairbank Investment Management, said in an interview on Friday.
“Meanwhile, the investment industry has really evolved from very humble beginnings to become a large and complicated industry… so this really begs the question; with so much change occurring in the world and in the investment industry over the last 70 years, how can Buffett remain relevant?”
According to Gill, Buffett has managed to remain one of the most respected and successful investors in the world for decades by adapting to the ever-changing global investment landscape.
He turned Berkshire, which he purchased in 1965 as a struggling textile business, into one of the largest holding companies in the world by investing first in insurance companies, then branching out to banks, consumer brands and technology firms.
“Buffett built a diversified conglomerate that encompasses a broad range of industries, spanning from insurance and energy to retail and manufacturing,” said Gill.
“So, in fact, last year, as Buffett celebrated his 94th birthday, Berkshire’s market cap reached US$1 trillion for the very first time and this made it the first non-tech company to achieve that level of success.”
Buffett’s patient and pragmatic approach to investing with proven results over the long-term has led to a cult-like following among many of his fans and admirers looking to emulate his investment philosophy.
It was earlier this year at Berkshire’s annual shareholder meeting that he announced he’d step down as CEO at the end of 2025. He named Canadian Greg Abel as his successor.
“Even as his age becomes a bit of a topic for discussion, the leadership structure at Berkshire has been carefully designed to ensure seamless continuity. Buffett’s expressed confidence in his successors,” Gill said.
As Buffett’s investing career nears a close, Gill argued that his willingness to change with the times and resist the urge to cling to old methods was key to Buffett’s success and is a lesson all investors should keep top of mind.
“In nature, species that can’t adapt to changes in their environment… may eventually face extinction. The Darwinian concept of adapt or die really highlights the importance of flexibility and innovation in the face of new challenges,” he said.
“Clinging to outdared practices or failing to recognize new realities can lead to stagnation, or worse, outright failure. Well, Warren has proven his ability to adapt.”
Gill noted that while Buffett was initially skeptical of tech stocks, he has embraced them more recently, famously purchasing roughly $1 billion worth of Apple stock in 2016, an investment that turned out to be one of the most profitable in Berkshire’s history.
While Buffett is thought of by many as an investor first, he’s also been an active philanthropist for many years, and has pledged to give the majority of his personal wealth, estimated to be more than $150 billion, away.
“Back in 2006, Buffett pledged to give away the vast majority of his wealth to charity… this focus on giving back, not just for him but also calling for other billionaires to join the giving pledge really made him a respected figure in both the business and the philanthropic communities,” Gill said.
“This means that when we study him many decades from now, his legacy will not just be that of a very talented and passionate investor, but also someone who committed themselves to try to make the world a better place… that’s both incredibly relevant and it’s timeless.”