Warren Buffett, the iconic CEO of Berkshire Hathaway, announced on Saturday, May 3, 2025, that he plans to step down from his role at the end of the year, paving the way for Greg Abel to take over as chief executive officer. This revelation was made during what marked Buffett's 60th annual meeting, where he expressed confidence in Abel's capabilities as his successor.
Buffett, who has led Berkshire Hathaway since 1970, stated, "I think it's the time has arrived where Greg should become the chief executive officer of the company at year-end." This transition has been anticipated since Abel was named Buffett's successor back in 2021. He currently serves as vice chairman, overseeing several of the company's operating businesses.
The announcement comes as Berkshire's board is set to convene on Sunday, May 4, 2025, to discuss the leadership transition. Buffett noted that he had only shared his plans with two board members, his children Susie and Howard, before the public announcement. He aims to let the remaining directors consider questions regarding the transition and take formal action in a subsequent meeting scheduled for a few months from now.
Buffett expressed optimism about the board's response, anticipating unanimous support for Abel's appointment. "I think they'll be unanimously in favor of it," he remarked. Despite stepping back from the CEO role, Buffett intends to remain involved with the company, stating, "I would still hang around, and could conceivably be useful in a few cases, but the final word would be what Greg said, in operations, in capital deployment, whatever it might be."
Greg Abel, a 62-year-old Canadian executive, has been a prominent figure at Berkshire Hathaway for years. He has been instrumental in managing the conglomerate's diverse portfolio, including the BNSF railroad and well-known brands like See’s Candies and Dairy Queen. Abel's leadership style emphasizes a decentralized approach, which aligns with Berkshire's culture of independence and integrity.
Buffett's tenure has been marked by remarkable growth for Berkshire Hathaway, with the company's per-share value compounding at an impressive rate of 19.9%, significantly outpacing the S&P 500, which has averaged a 10.4% annual gain. This growth translates to a staggering 5,502,284% return for shareholders since Buffett took over, meaning a $10,000 investment in 1965 is now valued at over $500 million.
In 2025, Berkshire's stock continues to perform well, having risen approximately 17% this year, contrasting sharply with a 3% drop in the S&P 500. As Buffett prepares to pass the baton, the focus will shift to Abel, who has been described as possessing a blend of high integrity, hard work, and strategic thinking—qualities that Buffett has long valued.
Longtime board member Ron Olson remarked on Abel's readiness to take over, stating, "Is he another Warren Buffett? No, there is no other Warren Buffett that I know. But he has so many of the fundamentals of Warren." This sentiment reflects the respect and confidence that Abel commands within the organization.
Buffett's decision to step down is not just about succession; it also speaks to the future of Berkshire Hathaway. Abel's main responsibility will be to maintain the company's unique culture while managing its vast array of businesses and nearly 400,000 employees. This decentralized culture has been a hallmark of Berkshire's success, allowing individual business units to operate independently while benefiting from the overarching guidance of Buffett and now Abel.
As the transition unfolds, many within the company and the investment community are eager to see how Abel will navigate the challenges ahead. While he has spent years in Buffett's shadow, Abel has gained recognition for his business acumen and instincts. Dairy Queen CEO Troy Bader highlighted Abel's abilities, stating, "When I think about Greg, he not only has high business acumen, but he has really high business instincts."
Abel's journey to this point has been shaped by his upbringing in Edmonton, Alberta, where he learned the values of hard work and perseverance. He has often drawn parallels between his experiences and those of Buffett, who similarly honed his skills working in his grandfather's grocery store. Abel's commitment to hard work has been evident throughout his career, and he has consistently demonstrated a strong understanding of various business sectors.
Looking ahead, the upcoming board meeting will serve as a pivotal moment for Berkshire Hathaway as it formally considers the transition to Abel's leadership. Buffett's confidence in Abel suggests a smooth transition, but the challenges of leading such a vast and diverse conglomerate will undoubtedly test Abel's capabilities.
As Buffett steps back, the investment world watches closely, eager to see how Greg Abel will shape the future of Berkshire Hathaway and whether he can uphold the legacy established by Buffett over the past several decades. The road ahead may be fraught with challenges, but with the support of Berkshire's board and the lessons learned from Buffett, Abel is poised to take the helm of one of the most successful companies in history.
