Warren Buffett, the legendary investor who transformed Berkshire Hathaway into a colossal conglomerate, announced he will retire as CEO at the close of 2025, handing the reins to Vice Chairman Greg Abel.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett, 94, declared on Saturday at Berkshire’s annual meeting in Omaha.
While the move caught most of Berkshire’s board by surprise, Buffett noted that his two children, who serve as directors, had been informed in advance.
Abel, 62, has worked as vice chairman since 2018 and was formally named Buffett’s intended successor in 2021. Accepting the responsibility, Abel told shareholders, “I couldn’t be more humbled and honored to be part of Berkshire as we go forth.”
Buffett confirmed he has “zero” plans to sell any of his Berkshire stock, stating that nearly all of it will be donated after his passing.
The announcement marks the close of Buffett’s astonishing six-decade journey at Berkshire, which began as a struggling textile firm and grew into a $1.16 trillion powerhouse spanning multiple industries. Today, Buffett’s personal fortune sits at $168.2 billion, the vast majority held in Berkshire shares, according to Forbes.
Cole Smead of Smead Capital Management summed up the moment, recalling that after hearing Buffett’s news, he told his father Bill Smead, “Well, it’s the end of an era. It’s sad, but it’s life.”
So far this year, Berkshire’s stock has surged 19%, far outperforming the S&P 500’s 3% decline. Investors have long trusted Buffett’s steady hand, seeing Berkshire as a shelter from economic turbulence and trade policy uncertainty.
But some wonder what’s next. “The question going forward is: will Berkshire still have a Buffett premium when Buffett is not there?” asked CFRA Research analyst Cathy Seifert. “You’re buying a stock and you’re also getting the investing prowess of a legend. With that legend gone, what is the value?”
Abel, who has increasingly overseen the company’s 189 operating businesses, suggested he plans to be more hands-on. “More active, but hopefully in a very positive way,” he said of his upcoming leadership style.
Buffett was confident in Abel’s ability, telling shareholders, “The fact that you can do pretty well doesn’t mean you couldn’t do better, and Greg can do better.”
Apple CEO Tim Cook echoed that faith, posting on X: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom… There’s no question that Warren is leaving Berkshire in great hands with Greg.”
Berkshire’s famed annual shareholder weekend, dubbed “Woodstock for Capitalists,” draws tens of thousands to Omaha. While the company will keep the tradition alive, many predict attendance will wane without Buffett.
Buffett and his late business partner Charlie Munger, who passed in 2023, turned Berkshire into a sprawling enterprise with nearly 200 businesses, from Geico and BNSF Railway to Dairy Queen and See’s Candies. The company’s stock portfolio, worth $264 billion at last count, includes major holdings like Apple, American Express, and Bank of America.
Buffett, revered as the “Oracle of Omaha,” became synonymous with disciplined, value-driven investing. Despite his vast wealth, he famously stayed in the Omaha home he purchased for $31,500 in 1958.
Abel’s path to the top started in 1992 at MidAmerican Energy, which later became Berkshire Hathaway Energy. After leading the business for a decade, he rose through the ranks to become Buffett’s heir apparent.
Even as Buffett’s net worth could have soared higher, he began gifting away his fortune in 2006, with most of his remaining Berkshire shares expected to fund a new charitable trust overseen by his children Susie, Howard, and Peter.
Abel’s future challenges are clear: sustaining Berkshire’s growth without overpaying for deals, managing a massive cash reserve, and deciding whether to introduce dividends. Meanwhile, Howard Buffett, 70, is set to become non-executive chairman to help maintain the company’s core culture.