Warren Buffett announced that he will step down as CEO of Berkshire Hathaway at the end of 2025, marking the end of a remarkable six-decade tenure that transformed the company into a $1.16 trillion conglomerate.
The 94-year-old investor, often hailed as the “Oracle of Omaha,” confirmed during Berkshire’s annual meeting in Omaha that Vice Chairman Greg Abel will succeed him as chief executive. Buffett noted that while he will step back from day-to-day responsibilities, he will remain involved in an advisory capacity if needed, though the final word on all matters will rest with Abel.
The decision, long anticipated, drew widespread praise from business leaders. JPMorgan Chase CEO Jamie Dimon called Buffett a symbol of integrity and optimism in American capitalism, while Apple CEO Tim Cook paid tribute to Buffett’s wisdom and influence, saying it was a privilege to know him.
Abel, 62, has served as vice chairman since 2018 and was publicly named Buffett’s heir apparent in 2021. Expressing humility, Abel said he was honoured to lead Berkshire into its next chapter.
Buffett emphasised his continued faith in the company’s future under Abel’s leadership, stating he had no plans to sell his Berkshire stock, which forms nearly all of his $168.2 billion fortune. He believes the company’s prospects will improve with Abel at the helm.
Most of Buffett’s stake is pledged to charity, and he reiterated that none of it would be sold during his lifetime.
The succession announcement underscores a significant transition for Berkshire Hathaway. Buffett took control of the then-struggling textile business in 1965 and, alongside late partner Charlie Munger, built it into a diversified empire encompassing insurance, railroads, energy, manufacturing, retail, and more. Today, Berkshire owns nearly 200 businesses and holds major stakes in companies like Apple, American Express, and Bank of America.
The company’s stock price has climbed 19% in 2024, far outpacing the S&P 500, and many investors have long seen Berkshire as a haven during economic uncertainty.
Buffett acknowledged that while he had not shared his retirement plan with most of the board in advance, discussions about a smooth transition would begin immediately.
Abel, who began his career at MidAmerican Energy (now Berkshire Hathaway Energy) in 1992, has gradually taken over many of Buffett’s responsibilities, including capital allocation and oversight of the company’s 189 operating businesses. He indicated that his leadership would be “more active” but in a positive and consistent way.
Analysts are now questioning whether Berkshire will retain its “Buffett premium” in the markets, given the legendary investor’s departure. Still, many believe the firm’s deeply rooted culture, long-term investment philosophy, and substantial cash reserves—over $347 billion as of March—will provide stability.
Abel will face the challenge of deploying that capital wisely, maintaining discipline in acquisitions, and potentially addressing questions around initiating a dividend policy.
Berkshire’s annual shareholder gathering, known as “Woodstock for Capitalists,” will continue even after Buffett steps down, though some expect attendance to dip. Howard Buffett, 70, is expected to eventually become non-executive chairman to help maintain the company’s values and governance approach.
Warren Buffett’s legacy, shaped by simple living, principled investing, and vast philanthropy, will remain embedded in Berkshire’s identity as the firm enters a new era under Greg Abel’s leadership.
