During the annual Berkshire Hathaway meeting in the historic 60th year, it was announced by Warren Buffett that by the end of 2025, he would step down as chairman and he formally nominated Greg Abel as his appointed successor.
“I think the time has arrived where Greg should become the chief executive officer of the company at year-end,” said Buffett, addressing thousands of shareholders in Omaha.
Buffett, 94, has led Berkshire Hathaway (BRK-A, BRK-B) since 1970, transforming it from a struggling textile mill into a $900+ billion conglomerate. Under his leadership, the company’s per-share value has grown at a 19.9% annualized rate, massively outperforming the S&P 500’s 10.4% and turning a $10,000 investment in 1965 into over $500 million.
Abel to Inherit the Legacy
Greg Abel, vice chairman of Berkshire who currently oversees the company’s non-insurance businesses, was named as Buffett’s successor in 2021 but had not received an official timeline—until now.
Notably, Abel was not informed ahead of the announcement, which Buffett said he had only discussed with two people: his children Susie and Howard Buffett. The Berkshire board will formally review the transition on Sunday, May 4.
Buffett added:
“I would still hang around and could conceivably be useful in a few cases. But the final word would be Greg’s.”
No Share Sales, No Disengagement
Buffett made it clear he will not sell any of his Berkshire shares and does not intend to disappear from the business entirely.
Abel, 61, has increasingly taken the spotlight at Berkshire meetings and has played a significant role in strategic decisions. His management of Berkshire’s sprawling portfolio of energy, railroads, and consumer businesses has drawn widespread praise.
A Transition Long in the Making
Shareholders and analysts have long speculated about Buffett’s retirement. This announcement, while monumental, is not unexpected. Still, hearing it directly from Buffett on the Berkshire stage carries emotional weight.
The announcement capped a slightly shorter Q&A session than in previous years. Buffett, Abel, and insurance chief Ajit Jain answered questions from shareholders and CNBC’s Becky Quick.
This year’s meeting — known as “Woodstock for Capitalists” — once again drew investors from around the globe. And for the first time, they now know who will lead Berkshire in its next chapter.
image: USA International Trade Administration, Public domain, via Wikimedia Commons
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