At the annual shareholders meeting of Berkshire Hathaway, legendary investor Warren Buffett announced that he would step down as CEO at the end of 2025 after more than six decades steering the conglomerate. His successor, Greg Abel, will officially take over the role of CEO, pending approval from the Board of Directors.
Buffett affirmed that he would continue to go to the office daily in an advisory role and be ready to support important investment decisions. The transition comes as Berkshire holds a record cash pile of about $348 billion and the global market faces many fluctuations after new policies from the Trump administration.
Greg Abel was born in 1962 in Canada and is the Vice Chairman in charge of Berkshire Hathaway’s non-insurance operations. He joined the conglomerate in 2000 and was previously the CEO of Berkshire Hathaway Energy. With more than two decades of connection, Abel is regarded by Warren Buffett as the ideal successor due to his strategic thinking and deep understanding of Berkshire’s culture.
Warren Buffett and Greg Abel
Opposing tariffs, maintaining faith in the U.S. economy
One of the highlights of the event was Buffett's view on global trade. He emphasized that tariffs are “bad for trade” and that “trade should not be a weapon.” Buffett believes that America has greatly benefited from trading with the world – thanks to its ability to export the products they do best to more markets.
Despite criticizing tariff policies, Buffett still expresses deep faith in the position and resilience of the U.S. economy. “If I were born again, I would negotiate in my mother’s womb until they agreed to let me be born in America,” he joked, implying that America is still the “land of opportunity.”
Market fluctuations do not change the investment philosophy
Buffett also mentioned the market's volatility since “Liberation Day” on April 2, when President Trump announced new policy measures. However, he believes that the fluctuations in the past few weeks are “really nothing” compared to the many times Berkshire’s stock has dropped over 50% without any fundamental issues occurring.
He pointed out that the market is not really in a major recession, and that the panic mainly stems from emotions. “When the market rises 15%, everyone accepts it easily. But when it falls 15%, it’s a disaster,” he said. “People have emotions, but when investing, you have to leave those emotions at the door.”
Outperformed by Bitcoin but still maintaining a strong stance
Although Berkshire stocks have long outperformed the S&P 500, in recent years, the company's profitability has been far outpaced by Bitcoin. Since 2020, Bitcoin has increased by over 781%, while Berkshire has only achieved about 150%. Nevertheless, Buffett maintains his opposition to Bitcoin, calling it “without intrinsic value” and often likening it to a scam. He and his partner Charlie Munger believe that Bitcoin should not be viewed as a mainstream investment.
An era closes, a lasting philosophy
Although Buffett's direct leadership era is gradually coming to an end, he leaves behind a massive legacy for the next generation of investors – from shareholder letters, speeches, to steadfast investment principles over time. Buffett may step down as CEO, but his investment mindset will continue to shape the market perspective for decades to come.