Warren Buffett Just Gave Investors a Four-Word Farewell That Explains Both His Exit — and the Secret Behind His 6,099,294% Return

Add another step to Warren Buffett's long-dreaded fade into the sunset at Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB). At Berkshire's annual shareholder meeting last year, he announced plans to step down as CEO in 2026. Buffett explained, though, that he would stay on as Berkshire's board Chairman.

However, Buffett released a letter to Berkshire Hathaway shareholders last week that his son, Howard, will become the conglomerate's new Chairman. Buffett will hold the title of Chairman Emeritus but will remain on the board.

The multibillionaire's letter was poignant in several ways. Perhaps the hardest-hitting was his four-word farewell, which explains both his exit and the secret behind his 6,099,294% return.

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Buffett's four-word message

The man nicknamed the "Oracle of Omaha" gave a hint about his announcement early in the letter to shareholders. Buffett noted, "Recently, I celebrated my 96th birthday with family and friends, including one of my great-grandchildren, who had just turned one." He added that the great-grandchild is "moving a bit faster than I am these days."

Buffett praised his successor as CEO, Greg Abel. He wrote, "My expectations for him were sky high from the start, and he has exceeded them. He has taken hold of the Chief Executive Officer job in every respect."

Then Buffett cut to the chase. He revealed his decision to hand over the reins as Chairman to his son, Howard, who has served on Berkshire's board for 33 years. Buffett explained that his son's mission will be to "guard [Berkshire's] culture and values." He said that both are "worth more than anything" on the company's balance sheet.

Near the conclusion of his letter, Buffett shared four bittersweet words: "Father Time always wins." The legendary investor immediately added, "He [Father Time] has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead."

How "Father Time" explains Buffett's phenomenal return

Buffett's four words acknowledged what Berkshire Hathaway shareholders — and many others — have known but didn't want to happen: At some point, Buffett's age would interfere with his ability to run the company. However, they also explain Buffett's phenomenal return between 1965 and 2025.

In the opening paragraph of his letter, Buffett mentioned his longtime business partner, the late Charlie Munger, stating: "From the beginning, Charlie and I looked for owners who thought in decades rather than quarters, and we were fortunate to find a great many of you."

The most important secret to Buffett's tremendous investing success has been his time in the market. He amassed more than 99% of his net worth, now roughly $144.6 billion, after age 50. Buffett has stated, "My wealth has come from a combination of living in America, some lucky genes, and compound interest."

Granted, Buffett's jaw-dropping return while leading Berkshire Hathaway has also been due to an exceptional ability to evaluate businesses. For example, the S&P 500 (SNPINDEX:^GSPC) generated a much lower overall return of 46,061% between 1965 and 2025. Buffett made some smart decisions during his six decades at the helm of Berkshire.

The lesson for all investors

I'd argue that Buffett's four-word message contains an important philosophy about life and investing. Whether or not we live to 96 or beyond, like Buffett, our time on Earth is finite. But the time we're given is also the most valuable resource we have.

Over the course of his long tenure as Berkshire's Chairman, Buffett turned an initial $1 invested into almost $61,000. The stocks he bought along the way played a key role in this impressive result. However, Buffett's patient and investing horizon were also critical.

Buffett was right: Father Time always wins. Investors who follow Buffett's lead, though, can do a lot of winning, too.

Keith Speights has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.