In a historic shift for one of America’s most iconic conglomerates, Warren Buffett announced he will step down as CEO of Berkshire Hathaway by the end of 2025, concluding a legendary 60-year tenure that transformed the company from a struggling textile firm into a $1.16 trillion powerhouse.
Buffett, 94, made the announcement during Berkshire’s annual shareholder meeting in Omaha, Nebraska, surprising the 40,000 attendees. He named Greg Abel, 62, the company’s Vice Chairman of non-insurance operations, as his successor. Abel has been Buffett’s designated successor since 2021 and currently oversees all of Berkshire’s non-insurance businesses.
“I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,” Buffett stated during the meeting.
Buffett emphasized that he has no plans to sell his shares and will remain involved as Chairman, providing guidance as needed. His son, Howard Buffett, will become non-executive chairman to help preserve the company’s culture.
Under Buffett’s leadership since 1965, Berkshire Hathaway’s Class A stock has soared approximately 5,500,000%, vastly outperforming the S&P 500’s 39,000% gain during the same period. The conglomerate’s portfolio includes major holdings in companies such as Geico, BNSF Railway, Dairy Queen, Apple, and Bank of America.
Greg Abel, a Canadian-born executive, began his career as a chartered accountant before joining CalEnergy in 1992. He became CEO of MidAmerican Energy in 2008, which was later renamed Berkshire Hathaway Energy. In 2018, Abel was appointed Vice Chairman of Berkshire Hathaway’s non-insurance operations.
Abel is known for his disciplined management style and has been instrumental in expanding Berkshire’s energy and utility businesses. He is expected to maintain the company’s decentralized structure and long-term investment philosophy.
The announcement marks the end of an era for Berkshire Hathaway and the broader investment community. Buffett’s departure as CEO is a significant moment, but his continued presence as Chairman and the appointment of a long-prepared successor aim to ensure a smooth transition and the preservation of the company’s unique culture and investment approach.