Omaha, Nebraska – Warren Buffett, the legendary investor known as the “Sage of Omaha,” announced his retirement as chief executive of Berkshire Hathaway, a trillion-dollar conglomerate, during a highly anticipated shareholders meeting over the weekend. The 94-year-old Buffett revealed he would step down at the end of this year, handing the reins to Greg Abel, who currently serves as vice-chairman and oversees the company’s vast portfolio of investments.
Buffett’s announcement came as a surprise to the thousands of investors in attendance. He received an enthusiastic standing ovation for his six decades of leadership at the helm of Berkshire. “I believe the time has come for Greg to take over as CEO,” Buffett stated, emphasizing his intention to retain his shares in the company, which he plans to donate in the future. The decision embodies his confidence in Abel’s management capabilities, which he believes will enhance Berkshire’s potential for growth.
This significant transition was disclosed after a lengthy Q&A session, where Buffett surprisingly chose not to elaborate on his retirement plans. Only his children were privy to his decision beforehand, while Abel, who accompanied Buffett on stage, joined the audience in applauding the announcement. At 62, Abel, a longtime Berkshire executive with a strong track record, has been poised as Buffett’s successor since 2001. He manages the majority of Berkshire’s non-insurance businesses, which include operations in energy, chemicals, and retail.
Industry leaders quickly expressed their fondness and admiration for Buffett following the announcement. Jamie Dimon, CEO of JPMorgan, highlighted Buffett as a symbol of American capitalism, lauding his integrity and long-standing commitment to fostering growth in the nation’s economy. Apple CEO Tim Cook added that Buffett had inspired countless individuals, including himself, and expressed confidence that the company was in capable hands with Abel.
Buffett transformed Berkshire Hathaway from a struggling textile company into a diversified giant over the years. Since taking control in 1965, he has built the conglomerate into a powerhouse with interests spanning insurance, railroads, and energy. Under his stewardship, Berkshire has triumphed through various market cycles, evidenced by the remarkable growth of its shares, which have tripled in value over the past five years.
As he prepares to leave the company, Buffett is riding high on positive financial results, with Berkshire reporting a record annual operating profit of $47.44 billion for 2024, a 27% increase from the previous year. His decision to retire comes during a period of exceptional performance, as Berkshire’s class-A shares have surged nearly 20% this year alone.
Despite his achievements, Buffett has not shied away from discussing broader economic and political issues. Earlier during the meeting, he articulated concerns about the potential global fallout from recent trade policies, cautioning that relations with other countries need to be managed with care. He argued that fostering trade is crucial for economic stability, rather than resorting to protectionist tactics.
Buffett has also publicly committed to donating a significant portion of his wealth to charity, planning to allocate around 99.5% to a trust overseen by his family. His net worth, estimated at $168.2 billion, places him among the wealthiest individuals globally.
As Berkshire prepares for this pivotal change in leadership, many investors and followers of Buffett’s career reflect on his lasting impact on the world of investing, acknowledging not just his financial prowess, but also his values of integrity and wisdom that have shaped his legacy. The future of Berkshire Hathaway now rests in the capable hands of Abel, as the company strives for continued growth and innovation in a dynamic marketplace.