Warren Buffett, one of the most iconic figures in global finance, has announced plans to step down as chief executive of Berkshire Hathaway by the end of the year, marking the end of an era for the $1.1 trillion conglomerate he has led for over five decades.
Speaking at Berkshire’s annual shareholder meeting in Omaha on Saturday, the 94-year-old investor confirmed that he will ask the board to approve Gregory Abel as his successor, handing over operational leadership of the business empire he built from a textile manufacturer into one of the most successful companies in capitalist history.
“Greg will have the final word on operations, investments and more,” Buffett told tens of thousands of shareholders, adding that while he will remain chairman, he expects to play a more limited advisory role moving forward.
Buffett, who retains a 14% stake in Berkshire worth approximately $164 billion, said the plan had only been known to two of his children — Howard and Susan Buffett — until Saturday’s meeting. The announcement was met with a standing ovation, and Abel, 62, appeared visibly surprised.
Upon Buffett’s passing, the chairmanship will pass to Howard Buffett, completing a carefully managed succession plan that has been years in the making.
Buffett’s leadership of Berkshire Hathaway transformed the company into a sprawling empire encompassing insurance, railroads, utilities, and iconic consumer brands. Its holdings include Geico, BNSF Railway, Dairy Queen, See’s Candies, Fruit of the Loom, Benjamin Moore and NetJets, alongside a stock portfolio with major stakes in companies like Apple and Coca-Cola.
Abel, a Canadian executive and current vice chairman of non-insurance operations, joined Berkshire when the firm acquired his energy business in 2000. He has since built Berkshire Hathaway Energy into one of the largest power utilities in the US and has long been seen as Buffett’s most likely successor.
“Greg is ready,” said Berkshire board member Ronald L. Olson, who is also stepping down. “Warren will still be a sounding board, just as Charlie Munger was.”
Munger, Buffett’s legendary business partner, passed away in 2023.
Despite Buffett’s continued good health and humour — he fielded hours of questions at the meeting — this year’s event was shortened and marked by a noticeable shift in tone. Buffett used a cane and showed signs of slowing down, reflecting the growing urgency around succession planning.
The timing comes amid a more volatile business environment. Berkshire’s first-quarter operating income fell 14% to $9.6 billion, and net income plunged 64%, driven largely by paper investment losses and weaker performance across many of its businesses, including insurance, which was hit by California wildfire losses.
Trump’s return to the White House and sweeping trade tariffs were also front and centre. Buffett warned that the new policies were fuelling global uncertainty and could affect supply chains, demand, and operating costs for Berkshire’s businesses.
“Trade should not be a weapon,” Buffett said. “It’s not right and it’s not wise.”
Buffett did not elaborate on the future roles of Todd Combs and Ted Weschler, the two investment managers he brought in over a decade ago. Combs now also serves as CEO of Geico, suggesting his role may evolve further in the post-Buffett era.
Berkshire’s record cash pile rose to $347.7 billion, reflecting Buffett’s caution and difficulty finding acquisition targets large enough to meaningfully move the needle for the sprawling conglomerate. While he teased a potential $10 billion investment, he declined to share details.
Berkshire was a net seller of stocks in the quarter, offloading $4.68 billion in equity compared to $3.18 billion in purchases.
Prominent business figures in attendance at the shareholder meeting included Bill Gates, Tim Cook, William Ackman, and Hillary Clinton, with some — like Priscilla Chan — attending for the first time.
As Buffett prepares to pass the torch, his departure from the CEO role will conclude one of the most legendary leadership tenures in corporate history. With Abel at the helm, investors and observers will be watching closely to see whether Berkshire’s next chapter can live up to the extraordinary legacy Buffett leaves behind.