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In a historic shift at Berkshire Hathaway, legendary investor Warren Buffett announced that he will step down as Chief Executive Officer at the end of this year, handing over leadership to Vice Chairman Greg Abel.
The surprise announcement came during Berkshire’s annual shareholder meeting in Omaha. Buffett, 94, said it was time for Abel to take charge.
“Tomorrow, we’re having a board meeting… I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett stated, adding that only two of the company’s directors—his children—were aware of the plan beforehand.
Greg Abel: The Chosen Successor
Greg Abel, 62, has long been identified as Buffett’s successor, with his formal designation dating back to 2021. However, the timing of the transition caught many off guard, including Abel himself. Despite stepping down from the CEO role, Buffett will remain involved with the company and is expected to offer guidance during major decisions.
Buffett clarified that he has no intention of selling his shares, worth over $160 billion, insisting that Berkshire is in good hands.
“Keeping every share is an economic decision,” he said. “I think the prospects of Berkshire will be better under Greg’s management than mine.”
Buffett also praised Abel’s leadership style, noting that his hands-on approach has been a better fit for managing Berkshire’s 60-plus subsidiaries. “I didn’t want to work as hard as he works,” Buffett said with characteristic candor, earning a warm laugh from the audience of nearly 40,000 shareholders.
Abel, a Canadian executive, has 25 years of experience at Berkshire. He joined the conglomerate in 2000 when it acquired MidAmerican Energy, where he became CEO in 2008.
He expressed confidence in maintaining Berkshire’s value-driven investment strategy, saying, “It’s the approach we’ll take as we go forward.”
Unclear Future for Chairman Role
The board is expected to approve the leadership change during Sunday’s meeting. What remains uncertain is whether Abel will also assume the chairman role. Buffett previously indicated his son, Howard Buffett, would become nonexecutive chairman after his death to preserve the company’s culture.
The shareholder meeting ended with a standing ovation for Buffett. It marked the end of an era for the man who transformed a struggling textile company into a $1.2 trillion powerhouse.
Buffett’s Message on Global Trade
In a separate address at the meeting, Buffett warned against using trade as a political weapon. His remarks were widely interpreted as a critique of former President Donald Trump’s tariff policies.
“Trade should not be a weapon,” he said. “The more prosperous the rest of the world becomes, the more prosperous we’ll become, and the safer we’ll feel.”
Buffett also dismissed concerns over short-term market volatility, stating that geopolitical tensions pose a greater threat than financial fluctuations.
Berkshire Hathaway reported first-quarter profits of $9.6 billion. This marks a 14% decline from the previous year. However, its stock recently hit an all-time high. This reinforces investor confidence as the company prepares for a new chapter.
