Sage delivers final lesson in rational capitalism as he steps down

When Warren Buffett rose at Berkshire Hathaway's annual meeting in Omaha this weekend and declared that he would relinquish the chief executive's chair at year-end, the arena erupted in ovation befitting a doyen whose tenure has spanned six decades.

- Tiaan Herbst

The 94-year-old investor confirmed that Greg Abel, his long-time lieutenant, will steer the $1 trillion (about R18 trillion) conglomerate into its next chapter, while he himself will remain a significant shareholder and informal counsellor.

Business luminaries from Bill Gates to Jamie Dimon queued up to laud the Sage of Omaha for a career that transformed a moribund textile mill into America's most admired holding company.

Measured by market capitalization, compound annual return and breadth of portfolio, Buffett's record is unrivalled. Since 1965, Berkshire's per-share book value has compounded at roughly 19% a year - outstripping the S&P 500 by a multiple that turns a single dollar into more than $40000 (about R730 000).

From railroads and reinsurance to root beer and renewable energy, he has marshalled capital with monk-like patience and an aversion to fashion.

Investors may recall his calm refusal to dabble in dot-com exuberance or the mortgage alchemy that felled Wall Street in 2008.