Warren Buffett, the 94-year-old billionaire investor, announced at Berkshire Hathaway’s annual shareholder meeting today that he will retire as CEO by the end of 2025, ending a 60-year tenure that transformed the company into a $1.16 trillion conglomerate. Buffett named Vice Chairman Greg Abel, 62, as his successor, a decision that surprised shareholders and board members, including Abel himself, at the Omaha event.
Buffett’s Retirement Shocks Shareholders
Buffett, known as the “Oracle of Omaha,” revealed his decision near the end of the annual meeting at the CHI Health Center, attended by thousands of shareholders. “I think the time has arrived where Greg should become the chief executive officer of the company at year-end,” Buffett said, adding that he had only discussed the plan with his children, Howard and Susie Buffett, who are board directors. The announcement prompted two standing ovations from the crowd, reflecting Buffett’s legendary status in the investment world.
Buffett emphasized he will retain his significant shareholding, stating, “I have no intention — zero — of selling one share of Berkshire Hathaway.” He plans to stay involved, potentially as chairman, but Abel will have the final say on operations and capital deployment. The board is set to discuss Buffett’s future role and formally vote on Abel’s appointment at a meeting on Sunday, May 4, 2025.
Greg Abel: Berkshire’s Next CEO
Greg Abel, a Canadian-born executive, has been a key figure at Berkshire since joining in 2000 through the acquisition of MidAmerican Energy, now Berkshire Hathaway Energy. Named vice chairman in 2018, Abel has overseen non-insurance operations, including BNSF railroad, Dairy Queen, and See’s Candies, managing nearly 400,000 employees across Berkshire’s diverse portfolio.
Designated as Buffett’s heir apparent in 2021, Abel is known for his analytical skills and hands-on management style. Buffett praised Abel’s readiness, saying, “The prospects of Berkshire will be better under Greg’s management than mine.” Abel, addressing shareholders after the announcement, expressed humility: “I couldn’t be more humbled and honored to be part of Berkshire as we go forward.”
Abel, who lives in Des Moines, Iowa, is expected to maintain Berkshire’s decentralized structure and value-driven culture, though investors note his quieter demeanor contrasts with Buffett’s charismatic presence. Some question whether Abel can replicate Buffett’s capital allocation prowess, given Buffett’s control of nearly 30% of Berkshire’s stock.
Buffett’s Legacy at Berkshire Hathaway
Warren Buffett began acquiring Berkshire Hathaway shares in 1962, taking control in 1965 when it was a struggling textile mill. Under his leadership, Berkshire grew into a conglomerate owning dozens of businesses, including Geico, Duracell, and Fruit of the Loom, with major stakes in Apple, Coca-Cola, and American Express. The company’s market cap reached $1.16 trillion, with a record $348 billion cash reserve in Q1 2025.
Buffett’s value-investing philosophy, inspired by mentor Benjamin Graham, emphasized buying quality businesses at fair prices and holding them long-term. His annual shareholder letters and witty commentary at meetings earned him a global following, with Berkshire’s stock delivering a 440,000% return since 1965.
Market and Investor Reactions
The announcement sparked reactions across the financial world.
There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him. And there’s no question that Warren is leaving Berkshire in great hands with Greg. pic.twitter.com/7p5zXtq5hP
— Tim Cook (@tim_cook) May 3, 2025
Investors on X expressed mixed sentiments, with some predicting short-term volatility for Berkshire’s stock (BRK.A, BRK.B) due to emotional shareholder reactions, while others see Abel’s succession as a stabilizing factor.
What’s Next for Berkshire Hathaway?
As Berkshire prepares for its first CEO transition in six decades, the focus is on Abel’s leadership and the board’s Sunday vote. Buffett’s pledge to keep his shares and remain involved signals confidence in Berkshire’s future, but the shift marks a new chapter for the conglomerate. Shareholders like Mark Oman, a retired Wells Fargo executive, are optimistic, citing Abel’s financial and leadership skills.
Buffett closed the meeting with a nod to Berkshire’s enduring vision: “This isn’t just a company; it’s a canvas, and it’s unlimited.” The financial world now watches as Abel steps into the spotlight to carry forward that legacy.
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