Warren Buffett’s recent exit as CEO of Berkshire Hathaway is being widely recognized not only for its impact on Wall Street but also as a master class in selfless leadership. Carolyn Dewar, senior partner and co-leader of McKinsey’s CEO practice, one of the firm’s vaunted “CEO whisperers” describes Buffett’s handover as “leadership at its most selfless”—a quiet but powerful lesson for leaders everywhere.
Dewar, who has talked to hundreds of CEOs and leaders for her role, including for her recently coauthored work, A CEO for All Seasons,wrote on LinkedIn that Buffett’s final letter to Berkshire shareholders is typical of the man they call “the Oracle of Omaha.” For instance, when he reminds readers that “the cleaning lady is as much a human being as the chairman,” Dewar writes that it sums up his whole leadership philosophy. “Decency is not decorative. Respect is what sustains loyalty, trust, and long-term success.”
In conversation with Fortune, Dewar emphasized that Buffett’s exit is itself an example of leadership. Buffett’s decision was not only personal but deeply organizational, reflecting the importance of choosing the right moment to ensure a thriving future for Berkshire Hathaway. Leaders must ask themselves whether they would pick themselves for the evolving needs of their company—a rarely practiced but crucial reflection. “For any leader, really saying from a company point of view … ‘Given the kind of skills we’ll need in our next leader, am I the right person to take us on that next journey?’”
She also referred back to her recent book, including research on former Intuit CEO Brad Smith, who had impressed her with his own succession mindset. He was CEO for 11 years and discussed succession with his board 44 times: every single quarter. Many of his deputies went on to be successful CEOs at other companies, she said, itself a representation of Smith’s legacy. She told Fortune that there was a fitting sports metaphor in the succession from one Hall of Fame quarterback to another.
The Steve Young problem—and opportunity
Before Intuit’s Smith stepped down as CEO, he suggested that he and his successor, Sasan Goodarzi, talk to Steve Young, who succeeded the iconic Joe Montana as the play caller for the San Francisco 49ers. “He talked to us about how, for part of his first year, he tried to be Joe Montana,” Smith told Dewar. “He grew his hair out like Joe and began to dress like Joe. He even tried to change his throwing mechanics like Joe. And he had the worst half-year ever.”
The lesson, Dewar recounted, is that eventually, Steve stopped trying to be like Joe and had a great career. “Steve looked right at Sasan and said, ‘You need to be the best Sasan Goodarzi in the world.’” Buffett passing the torch to his longtime deputy Greg Abel reminded her of this, she added. “How do you give the person the confidence and space to be themselves? There’s a reason they were picked, right? They shouldn’t be trying to be their predecessor.”
As Dewar explained, “Once it’s clear what that timing is … have you done all the things to get your successor ready?” Buffett’s preparation for Abel as his successor was methodical and generous. Dewar emphasized the unique nature of the CEO role and how effective leaders create opportunities for potential successors to experience the scope of executive responsibility before taking the job. Buffett’s warm public handoff—accompanied by confidence and supportive messaging—not only inspired trust, but reinforced the value of setting up successors for success, allowing the new leader to “find their voice and be seen as the CEO” without interference from predecessors.
The beauty of ‘going quiet’
Dewar was particularly struck by Buffett’s intention to “go quiet for a while.” This is a rare and graceful move among iconic leaders, ensuring the new CEO gets the space to lead authentically: to be Steve Young, in other words. Successful transitions occur when the outgoing CEO avoids “chipping in from the cheap seats” and supports the new leader from a respectful distance, recognizing the need to “give the person the confidence and space to be themselves.” Adding that she was not close to the story directly, she said the current succession at Walmart looked similar, with Doug McMillon passing the torch to John Furner, who was in a deputy role very similar to Abel’s.
Dewar added that, even though Buffett may be going quiet and making fewer headlines with his wise pronouncements going forward, “he’s done so much writing, and going back and reading all of his letters to shareholders, I think, is a gift that he’s left behind, that all of us can read and learn from.” Obviously, she added, “whenever there’s an incredible leader, you’re going to miss them. And I think the key for everyone then is to distill, well, ‘What are those lessons learned? What are the things we admire, and how do this next generation of leaders embody that and take it forward in a way that works for them?’”
To her point, Buffett’s famous quotes are legion, nearly all of them easier said than done. “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1,” he said in his folksy style, a typically deceptively simple quote. Another is, “Be fearful when others are greedy and greedy only when others are fearful.” Finally, there’s the famous quote that refers to bubbles as the great exposer of true investors and poseurs: “Only when the tide goes out do you discover who’s been swimming naked.”
Dewar said the fourth season in A CEO for All Seasons is “not talked about enough.” What we’re seeing with Walmart and Berkshire Hathaway, she said, is that “how you finish strong not only sets your successor up for success, but it sets the organization up to thrive beyond you. And that should be the goal, that should be the legacy.” She added: “It’s nice to feel like you’re going to be missed, but honestly, your real legacy is when you’ve left the next generation in such a great place that they’re going to do even better than when you were there.”