When Is It Time to Step Aside? The Five Key Considerations

Warren Buffett has been influencing the world of investing and business for decades. The annual Berkshire Hathaway letters have become an institution, solidifying Buffett’s status not just as a great investor but as a leading finance and investment writer. Nevertheless, even Buffett has to step aside eventually — and that moment comes at the end of this year, at the age of 95.

Stepping down as CEO is a big deal for anyone, let alone somebody with both the talent and the cult of personality of Warren Buffett. We understand from Jonathan Levin in his article in the AFR that Buffett will also relinquish his penning of the annual letter to shareholders. [1]

His letters provided a window into not just the mind of an investment genius but, like many who know their craft intimately, we saw through those letters his ability to simplify the complex, creatively using metaphor so many of us could understand what was going on. Buffett’s observations on Mr. Market, the character first conceived by his own inspiration, Benjamin Graham, the author of The Intelligent Investor, are legendary. He quipped about his “incurable emotional problems” in 1987, along with Mr. Market being “euphoric” when he thought prices were too high and “deeply depressed” when prices were too low.

Stepping down, even at 95, is not easy. I think we can all agree that Buffett’s contribution has been immense, and he now deserves to stop “skipping to work,” as he claimed he did since 1965. He has said he will now be “going quiet” and perhaps put his feet up. Giving away a large chunk of his remaining wealth will hardly be putting his feet up — he will, in fact, be stepping up his philanthropy, giving away AUD 227 billion in Berkshire stock which he still holds.

So, when is the right time to step aside? This has as many answers as there are companies owned by both the Silent Generation (81 years and older) and the Baby Boomers (age 62–80). But in our work at Oasis in the mid-market here in Australia, we are seeing some themes emerge:

1. A tendency to leave it late and then react to life, as illness or other changes descend.
2. Thinking that’s it’s a once and done exercise, when in fact it can be done in stages. Planning early and getting creative around succession can open opportunities to both de-risk and at the same time reorient your activities – doing more of what you are good at and less of what you would prefer not to do.
3. Staff and management, when able to step up often don’t have the wherewithal and risk appetite to take the business on. Yet with the right external party, the team can be complemented by new leadership and capital – this is sometimes called a management buy-out/buy-in.
4. Whilst the life expectancy for an Australian Male is 81, what is often not discussed is the health and mobility decline through our 70’s and 80’s. Those decades are often not equal in terms of vigor and mobility, although there are clearly exceptions as Warren Buffett has ably displayed.
5. Asking and answering the question, what would I be rather doing other than working? is important. If, like Warren Buffett, the answer keeps coming back as, “nothing.” Then keep at it. For many there are other answers to that important question – which may spark a change.

[1] AFR A wistful farewell to Warren Buffett’s annual letter. Friday 7^th November 2025

Photo credit – Paul Morigi – Warren Buffett speaks onstage at the FORTUNE Most Powerful Women Summit on October 16, 2013 in Washington, DC.