Warren Buffett announced on Saturday, May 3, 2025, at Berkshire Hathaway’s annual shareholder meeting that he will step down as CEO at the end of the year. This marked a historic moment for the company, as Buffett, who has led Berkshire Hathaway since 1965, is now 94 years old. During the meeting, held at the CHI Health Center in Omaha, Nebraska, Buffett revealed his plan to hand over the reins to Greg Abel, the current vice chairman of non-insurance operations, pending board approval.
Buffett expressed confidence in Abel's ability to lead the company, stating, "I think the time has arrived where Greg should become the chief executive of the company at year-end." Abel, who has been viewed as Buffett's successor since 2021, has a long history with Berkshire Hathaway, having first joined the company when Buffett's firm acquired a controlling stake in MidAmerican Energy in 1999.
As Buffett prepares to step aside, he reassured shareholders that he would not sell any of his shares in Berkshire Hathaway, emphasizing his commitment to the company he has built over decades. "I plan to let the board think about what questions, or what structures, or anything they have," Buffett said, indicating that he would facilitate a smooth transition for Abel.
Abel, 62, is expected to maintain Buffett's investment philosophy, which focuses on long-term growth without distributing dividends to shareholders. He told shareholders that he intends to uphold the company's "fortress of a balance sheet," allowing Berkshire to make significant investments without relying on external financing. Investors anticipate that Abel's leadership style may be more hands-on than Buffett's, which could lead to new strategies while preserving the company's core values.
Buffett's announcement came as a surprise to many, despite the longstanding speculation surrounding his succession. The annual meeting drew thousands of attendees, who gave Buffett a standing ovation as he shared his plans. This meeting, often referred to as "Woodstock for Capitalists," is a highly anticipated event for Berkshire shareholders and fans alike.
Reflecting on his decades-long career, Buffett shared anecdotes from his early investing days, including his first stock purchase at age 11 and his journey to becoming one of the world's wealthiest individuals. Berkshire Hathaway, under his leadership, has transformed from a struggling textile mill into a $1.1 trillion conglomerate with diverse holdings, including railroads, insurance companies, and energy firms.
Buffett's tenure has seen an astounding 5,502,284% return for shareholders, with an investment of $10,000 in 1965 now valued at over $500 million. In 2025 alone, Berkshire's stock has outperformed the S&P 500, rising approximately 17% compared to a 3% decline for the index.
As he prepares to pass the baton, Buffett is not only handing over the leadership role but also the culture and traditions that define Berkshire Hathaway. He emphasized the importance of transparency and honesty in communications with shareholders, stating, "If you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well."
Greg Abel, who has been recognized as Buffett's heir apparent, has built a reputation as a perceptive leader with a keen focus on operational efficiency. He has been instrumental in expanding Berkshire's interests in various sectors, including energy, and has served on the boards of several major companies. Abel's management style is characterized by active engagement and a commitment to understanding the intricacies of the businesses under his purview.
Born in Edmonton, Alberta, Abel graduated from the University of Alberta in 1984 and began his career at PricewaterhouseCoopers before joining CalEnergy. He has played a significant role in Berkshire Hathaway Energy's growth and has been involved in key investment decisions that align with Buffett's long-term vision.
During the shareholder meeting, Abel expressed gratitude for Buffett's mentorship, saying, "Warren has obviously been a remarkable teacher, and I have benefited from that for years." This acknowledgment reflects the close relationship between the two men and the shared values that have defined Berkshire Hathaway's success.
As Buffett prepares to step down, he will remain as chairman and plans to pass that role to his son, Howard Buffett, upon his passing. This transition underscores the familial ties that have influenced Berkshire Hathaway's development.
Buffett's comments on broader economic issues, including trade policies and tariffs, also resonated with shareholders. He described America's trade wars as a "big mistake" and emphasized the importance of maintaining open trade relations. His views on the current economic landscape reflect his longstanding belief in the power of free markets and the potential for American innovation.
In conclusion, the transition from Warren Buffett to Greg Abel marks a significant milestone in Berkshire Hathaway's history. As the company prepares for this leadership change, investors and shareholders remain optimistic about the future under Abel's stewardship. With a commitment to maintaining the company's core values and investment philosophy, Abel is poised to lead Berkshire Hathaway into a new era while honoring the legacy of its legendary founder.
