Dear Readers,

May marked a significant milestone in the history of modern investing and one that is worth reflecting on in this edition of the Warwick Wealth Matters.

After launching Berkshire Hathaway in 1965, Warren Buffet announced that he will be stepping down as Chairman at the end of this year. The 94-year-old veteran investor, known as the Oracle of Omaha, told his company's annual meeting he would hand over the reins to Vice-Chairman Greg Abel.

The BBC notes that Buffett built Berkshire Hathaway from a failing textile maker into an investment juggernaut worth $1.16tn and is arguably the world's most successful investor.

With characteristic self-deprecating humour Buffet noted that the standing ovation he received after announcing his retirement could be interpreted in two ways…

Mr Buffett handpicked Greg Abel as his successor four years ago but gave no indication at the time that he would retire. During the Berkshire Hathaway AGM, Buffett added that he does not plan to sell off any of his Berkshire stocks.

Berkshire Hathaway owns more than 60 companies, including insurer Geico, battery-maker Duracell and restaurant chain Dairy Queen. It also has major stakes in Apple, Coca Cola, Bank of America and American Express, among others.

Investopedia notes that Mr Buffett has given away billions to charity, and was last month ranked by Bloomberg as the world's fourth-wealthiest person, with a net worth of $154bn. Despite being one of the richest people in the world, Mr Buffett has lived in the same modest house in Omaha for more than 65 years.

The announcement came as Mr Buffet spoke out against President Donald Trump's tariffs, telling investors that the US should not use "trade as a weapon".

"It's a big mistake in my view when you have 7.5 billion people who don't like you very well, and you have 300 million who are crowing about how they have done," he said earlier in the meeting.

"We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best," he added.

While not always getting it right and with some notable wealth destructive investments, Buffet has remained consistent in his investment philosophy. Remarkably, the Oracle of Omaha isn't concerned with the supply-and-demand intricacies of the stock market. In fact, he's not really concerned with the activities of the stock market at all. This is the implication in his famous paraphrase of a Benjamin Graham quote: "In the short run, the market is a voting machine, but in the long run, it is a weighing machine."

He looks at each company as a whole, so he chooses stocks based solely on their overall potential as a company. Buffett doesn't seek capital gain by holding these stocks as a long-term play. He wants ownership in quality companies that are extremely capable of generating earnings.

It’s a sound philosophy that may not suit all investors under all market conditions, but it is one that has earned results and respect from the global investment community.

In a world of frantic get rich quick immediate gratification investing, we need more Warren Buffets.

Until next month, keep well and stay invested!