Omaha, Nebraska — Warren Buffett, the renowned CEO of Berkshire Hathaway, announced his plans to step down during the company’s annual shareholders meeting, delivering a surprising revelation to attendees. The lengthy session lasted over four hours, during which Buffett addressed a variety of topics concerning both business and politics.
Buffett stated that he intends for Greg Abel, the current vice chairman of non-insurance operations, to succeed him as CEO. He plans to formally notify the board of his decision, aiming for a transition by the end of the year. Buffett emphasized his commitment to remaining involved, vowing not to sell any of his shares. “I think the time has arrived where Greg should become the chief executive officer of the company at year-end,” said Buffett.
In a significant portion of the discussion, Buffett expressed his opposition to tariffs, labeling them detrimental to trade relations. He highlighted concerns about the economic implications of proposed tariffs, which some fear could push the economy toward a recession. “Trade should not be a weapon,” he remarked. He continued, arguing that the prosperity of other nations could enhance, rather than diminish, American prosperity.
Despite recent market fluctuations, Buffett maintained a sense of calm, asserting that the recent turbulence should not be characterized as significant. He pointed out that the S&P 500 had recently experienced a notable winning streak, even after a sharp decline that put it into bear market territory. He indicated that he would welcome a substantial drop in Berkshire shares, viewing it as a “fantastic opportunity.”
Buffett retained an optimistic outlook on America’s economic future, asserting that the country will continue to play a leading role on the global stage. Referencing challenges like the Great Depression and world wars, he expressed resilience. “If I were being born today, I would just keep negotiating in the womb until they said you can be in the United States,” he added, emphasizing his belief in American exceptionalism.
Addressing fiscal concerns, he acknowledged the rising national deficit, labeling it unsustainable over time. Buffett suggested that action is necessary to ensure government spending aligns with reasonable fiscal policies. He urged Congress to take steps to manage the deficit effectively, stating, “This is something that can’t go on forever.”
During the meeting, Buffett revealed that Berkshire Hathaway nearly invested $10 billion from its now-record cash reserves. With over $330 billion in cash, the company remains a focal point for investors who are eager to see what strategic decisions will follow. “We came pretty close to spending $10 billion, not that long ago,” he noted, indicating no lack of opportunities for investment.
As Buffett prepares for this upcoming transition, shareholders and market watchers will be keen to see how the company navigates a changing economic landscape and what Abel will bring to the role.