Your Money & Your Life
Warren Goes Quiet
No, not Warren Ward, but the ‘other Warren’ in the investment world, Warren Buffett, who announced his retirement (at age 95) last fall. He used a version of today’s title in his final communication to Berkshire Hathaway shareholders. In the twenty-five years I’ve been writing my own newsletters, I’ve quoted him more times than any other source—fair warning that I’ll be doing so again today. Summarizing his very full life isn’t easy, but I’d like to cover some high points, perhaps sharing a few things you may not have known.
Buffett’s interest in value investing began early. His first investment wasn’t Berkshire Hathaway but three shares of gas and electric utility Cities Service Preferred stock—purchased at age eleven. He chose this stock because the shares had dropped approximately 50% in early 1942, and offered an attractive dividend, giving him what felt like both value and income during a period of market stress.
In hindsight, perhaps it’s not surprising that he made money on the purchase, but he also learned an early lesson. He sold it at about a 5% gain, but the stock’s price continued to rise. I think one of Buffett’s most interesting observations is a message from his 11-year-old self to his 55-year-old self: “The stock market is a device for transferring money from the impatient to the patient.” Watching a small, short-term gain give way to a far larger missed opportunity helped shape his later belief that turnover, not volatility, erodes results. In his 1988 shareholder letter he said, “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.” This is a theme he returned to more than once, including in his 1996 letter, when he wrote, “Our portfolio shows little change: We continue to make more money when snoring than when active. Inactivity strikes us as intelligent behavior.”
In my professional experience, impulsive behavior often seems to be a more significant threat to financial security than poor investment selection. Selling during downturns, chasing returns after markets rise, or abandoning a plan when fear creeps in can quietly erode years of progress. Buffett never claimed to be the smartest person in the room. Instead, he emphasized a thoughtful, long-term approach rather than making rushed decisions. As he put it during a 1993 talk at Columbia Business School, “Risk comes from not knowing what you’re doing.” In other words, volatility isn’t the enemy—ill-considered decision-making is. Understanding what you own and why you own it makes it easier to stay invested when markets get uncomfortable.
As I’ve written before, Buffett was a student of Benjamin Graham while in grad school at Columbia. Graham became known as the father of value investing after publishing his classic book, The Intelligent Investor, in 1949. Graham famously described ultra-cheap, distressed stocks as “cigar butts”—unpleasant but potentially profitable if bought for almost nothing. Buffett began his career by investing that way, before concluding that paying a fair price for a truly great business was the better long‑term approach.
As Buffett eases out of the spotlight, I don’t expect his influence to fade. His true gift was translating complex financial truths into plain language and consistently living by those truths. One of Buffett’s most human reflections is this: “You only have to do a very few things right in your life so long as you don’t do too many things wrong.” Hopefully, this idea brings comfort to investors. Things don’t have to work out perfectly for financial goals to be met.
Many people’s social and emotional well-being is tied to their work. After all, they've spent decades honing their skills, but those may not matter as much in retirement. In Buffett’s opinion, it's relationships that are the true measure of success. Creating, fostering, and maintaining those relationships should be the focus rather than making money. Buffett suggests, “Happiness doesn’t come from how much money you have, but if the people you love, love you back.”
Right now, some of you may be asking when Warren Ward will join the other Warren in retirement. In fact, DCM doesn’t have a mandatory retirement age. While I may not work until I’m 95, I plan to continue as long as I believe I’m still able to help people make good decisions about their financial lives. When I do leave, I’ll be counting on Ron, Leeanne, Vickie, and Bryce, along with the entire DCM team, to take care of me, as well as my clients.
Warren Ward, CFP®
Senior Investment Advisor
To learn more about Warren or read his previous articles, visit his profile page here.
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