Warren Buffett Bows Out After Six Decades As Berkshire CEO; Greg Abel Named Successor

Buffett, 94, made the statement during Berkshire’s annual shareholders meeting in Omaha, revealing that Vice Chairman Greg Abel will take over as CEO.

Buffett emphasised he has "zero" plans to sell any of his Berkshire shares.

Source : Britannica

After six decades of leading Berkshire Hathaway, Warren Buffett has announced he will step down as the conglomerate’s chief executive by the end of 2025.

The announcement marks the end of one of the most iconic leadership tenures in corporate America. Buffett, 94, made the statement during Berkshire’s annual shareholders meeting in Omaha, revealing that Vice Chairman Greg Abel will take over as CEO, reported Reuters.

"I think the time has arrived where Greg should become the chief executive officer of the company at year end," Buffett told shareholders. Although stepping aside from his CEO duties, Buffett noted he would "hang around and conceivably be useful in a few cases" while affirming that the "final word" would rest with Abel.

Abel, 62, has been part of Berkshire’s leadership since 2018 and was publicly identified as Buffett’s chosen successor in 2021. While he may not yet carry Buffett's star power, he is expected to uphold the company’s distinct culture. “I couldn't be more humbled and honoured to be part of Berkshire as we go forth," Abel told shareholders, following Buffett’s announcement.

Transition Planning and Board Involvement

Buffett shared that most board members were unaware of the timing of his decision before the announcement, though he had discussed it with his children, who also serve as Berkshire directors. The board is set to convene on Sunday to formalise plans for the leadership transition.

Importantly, Buffett emphasised he has "zero" plans to sell any of his Berkshire shares. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine,” he said. Nearly all of Buffett's fortune—estimated at $168.2 billion by Forbes—is tied up in Berkshire stock, which he has pledged to donate after his death.

Buffett: The Oracle Of Omaha

Buffett’s departure closes an extraordinary chapter in corporate history. Taking over the business in 1965, he transformed Berkshire Hathaway into a $1.16 trillion enterprise that spans virtually every sector of the US economy. From insurance and railroads to energy, retail, and consumer brands like Dairy Queen, See’s Candies, and Fruit of the Loom, the company has become a symbol of disciplined investing and long-term thinking.

Berkshire’s investment portfolio remains vast, with $264 billion in stocks including major stakes in Apple, American Express, and Bank of America as of the end of March. The company also maintains a cash hoard of $347.7 billion.

Buffett's stock-picking acumen earned him the nickname “Oracle of Omaha,” and under his leadership, Berkshire shares appreciated by an astonishing 5,502,284 per cent between 1965 and 2024. Despite his immense wealth, Buffett has famously lived modestly—never moving from the Omaha home he bought in 1958 for $31,500.

His influence extended well beyond finance. A disciple of Benjamin Graham, Buffett championed value investing and cautioned against speculative behaviour. His approach attracted not just investors but admiration from business leaders around the world.

"Warren Buffett represents everything that is good about American capitalism and America itself—investing in the growth of our nation and its businesses with integrity, optimism, and common sense," said JPMorgan Chase CEO Jamie Dimon. Tim Cook, Apple’s chief executive, echoed the sentiment: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him.”

Challenges Ahead for Abel

As Abel prepares to assume control, questions loom about how Berkshire will evolve under his leadership. He has already taken over key responsibilities, including capital allocation, and suggested his style may be “more active, but hopefully in a very positive way.”

Abel’s Berkshire journey began in 1992 when he joined MidAmerican Energy, which later became Berkshire Hathaway Energy. He led that unit for a decade before rising through the company’s ranks.

Among the challenges awaiting him are deciding whether to initiate a dividend, determining how to deploy Berkshire’s cash reserves efficiently, and sustaining growth without overpaying for acquisitions. He will also inherit the task of preserving a corporate culture deeply shaped by Buffett and his longtime partner Charlie Munger, who passed away in November 2023.

Howard Buffett, Warren’s 70-year-old son, is expected to eventually succeed him as Berkshire’s non-executive chairman, helping to maintain the company’s values and long-term orientation.

The impact of Buffett’s leadership continues to reverberate. Many investors view Berkshire as a reliable shield against economic volatility and political uncertainty. The company’s stock has gained 19 per cent so far this year, even as the S&P 500 declined by 3 per cent.