In a moment that marked the end of a historic chapter in American business, Warren Buffett announced on Saturday that he plans to step down as CEO of Berkshire Hathaway, with Vice Chairman Greg Abel set to take over by the end of the year.
Speaking in the final minutes of Berkshire’s annual shareholder meeting, the 94-year-old investing icon told the crowd of 40,000 that he would ask the company’s board to approve the leadership transition at a meeting scheduled for Sunday.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said, noting that only his children, Howard and Susie, were aware of the plan ahead of the announcement.
Although Abel was named successor in 2021, the official transition came as a surprise to many longtime shareholders who returned to Omaha once more to see Buffett speak in person.
Buffett purchased the struggling textile firm in 1965 and turned it into a global conglomerate valued at nearly $1.2 trillion. From insurance giant Geico to BNSF Railway, Berkshire’s empire now includes over 60 companies, a feat unmatched in corporate history.
Buffett said he will remain involved in an advisory capacity, though decision-making authority will shift to Abel. “I could be helpful, I believe, in certain respects, if we ran into periods of great opportunity or anything,” he said, adding that he would retain every share of his Berkshire stock, now worth more than $160 billion.
“This is an economic decision,” Buffett explained. “I think the prospects of Berkshire will be better under Greg’s management than mine.”
The Canadian-born Abel, 62, has been with Berkshire for a quarter century. He joined through the 2000 acquisition of MidAmerican Energy, where he eventually became CEO. Prior to that, he helped build CalEnergy into a diversified energy player.
Known for his work ethic and deep operational focus, Abel has already taken on much of the day-to-day management of Berkshire’s subsidiaries. “It’s working way better with Greg than with me,” Buffett said. “I didn’t want to work as hard as he works.”
Abel reassured shareholders that he plans to preserve Berkshire’s core investment philosophy, echoing Buffett’s approach to long-term value creation. “Really, it will not change,” Abel said. “It’s the approach we’ll take as we go forward.”
What remains unclear is whether Abel will also inherit Buffett’s chairman title. Buffett previously indicated that his son Howard would eventually serve as nonexecutive chairman to help safeguard the firm’s unique culture. A formal decision on Buffett’s new role is expected after Sunday’s board meeting.
Board member Ron Olson praised the move, saying, “It surprises me, but it impresses me. I am very anxious to see Warren become the Charlie Munger for Greg Abel.”
The meeting closed with a standing ovation, a fitting tribute to Buffett’s unmatched legacy and a warm welcome for the man who will steer Berkshire into its next era.
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