Buffett’s retirement is an example of an altruistic leader, says McKinsey expert

Warren Buffett’s recent departure 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—a celebrated CEO consultant—describes Buffett’s transition as “leadership at its most selfless”: a quiet but powerful lesson for leaders everywhere.

Dewar, who has spoken to hundreds of CEOs and leaders in his work, including for his recently co-created book A CEO for All Seasons, wrote on LinkedIn that Buffett’s final letter to Berkshire shareholders is typical of the man called “The Oracle of Omaha.”

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For example, when he reminds readers that “the cleaning lady is as human as the chairman,” Dewar writes that this sums up his entire leadership philosophy. “Decency is not an ornament. Respect is what sustains loyalty, trust and long-term success.”

In conversation with Fortune, Dewar emphasized that Buffett’s departure is, in itself, an example of leadership. Buffett’s decision was not just personal but deeply organizational, reflecting the importance of choosing the right time to ensure a prosperous future for Berkshire Hathaway.

Leaders need to ask themselves whether they would choose themselves for the company’s evolving needs—a rarely practiced but crucial reflection. “For any leader, really saying from the company’s perspective… ‘Given the kind of skills we’re going to need in our next leader, am I the right person to take us on this next journey?’”

She also mentioned her recent book, including research with former Intuit CEO Brad Smith, who impressed her with his mindset on succession. He was CEO for 11 years and discussed succession with the board 44 times: every quarter. Many of his executives went on to become successful CEOs at other companies, she said — something that in itself represents Smith’s legacy. She told Fortune there was an appropriate sports metaphor in the succession of one Hall of Fame quarterback to another.

The Steve Young Problem—and the Opportunity

Before Smith stepped down as CEO of Intuit, he suggested that he and his successor, Sasan Goodarzi, talk to Steve Young, who succeeded the iconic Joe Montana as quarterback of the San Francisco 49ers. “He told us that for part of his freshman year he tried to be Joe Montana,” Smith told Dewar. “He grew his hair like Joe and started dressing like Joe. He even tried to change his throwing mechanics to look like Joe. And he had the worst half year of his life.”

The lesson, Dewar recalls, is that eventually Steve stopped trying to be Joe — and went on to have a brilliant career. “Steve looked directly at Sasan and said, ‘You need to be the best Sasan Goodarzi in the world.’” Buffett’s passing of the torch to his longtime deputy Greg Abel reminded her of that, she adds. “How do you give someone the confidence and space to be themselves? There’s a reason they were chosen — they shouldn’t try to be your predecessor.”

As Dewar explained: “Once it is clear what the time is… have you done everything necessary to prepare your successor?” Buffett’s preparation for Abel was methodical and generous.

Dewar highlighted the unique nature of the CEO role and how effective leaders create opportunities for potential successors to experience the breadth of executive responsibilities before assuming the role.

Buffett’s warm public transition — filled with confidence and messages of support — not only inspired confidence, but reinforced the value of grooming successors for success, allowing the new leader to “find his voice and be seen as CEO” without interference from his predecessor.

The beauty of “disappearing a little”

Dewar was particularly impressed by Buffett’s intention to “lay low for a while.” It’s a rare and elegant gesture among iconic leaders — ensuring that the new CEO has the space to lead authentically: to be Steve Young, so to speak.

Successful transitions occur when the departing CEO avoids “talking from the stands” and supports the new leader from a respectful distance, recognizing the need to “give trust and space for the person to be themselves.”

Adding that she is not close to the situation directly, she said the current succession at Walmart appears similar, with Doug McMillon passing the torch to John Furner, who held a deputy role very similar to Abel’s.

Dewar added that while Buffett may be becoming quieter and making less headlines with his wise statements going forward, “he wrote so much, and going back and reading all of his letters to shareholders is a gift he left for all of us to read and learn from.”

Obviously, he added, “any time there’s an incredible leader, they’re going to be missed. And I think the key thing for everyone is to distill, ‘What are the lessons learned? What do we admire? And how do the next generation of leaders embody that and carry it forward in a way that works for them?'”

To illustrate, Buffett’s famous phrases are countless — and almost all of them are easier to say than to practice.

“Rule #1: Never lose money.”

“Rule #2: Never forget rule #1,” he said in his folksy style—a typical and deceptively simple phrase.

Another: “Be afraid when others are greedy, and be greedy only when others are afraid.”

Finally, there is the famous phrase about financial bubbles, which exposes real investors and fraudsters: “Only when the tide goes out do you discover who was swimming naked.”

In “A CEO for All Seasons,” Dewar said the “fourth season” “isn’t discussed enough.”

“What we’re seeing with Walmart and Berkshire Hathaway, she said, is that “when you finish well you don’t just set up your successor for success — you set up the organization to thrive beyond you. And that should be the goal. That should be the legacy.”

She added: “It’s nice to know you will be missed — but honestly, your true legacy is when you leave the next generation in such a strong position that they will do even better than when you were there.”

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