Billionaire investor Warren Buffett has shocked investors after announcing he will be stepping down as CEO of Berkshire Hathaway at the end of the year.
The 94-year-old, the world’s fifth richest man, made the surprise announcement at the company’s 2025 investor conference on Saturday.
Back in May 2021, Buffett announced that then-vice president Greg Abel would succeed him at the head of the company, but did not provide a definitive timeline for when he would be handing over the reins.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end and I want to spring that on the directors eventually and give that as my recommendation,” he said at the conference on Saturday.
Abel already manages all of Berkshire’s non-insurance businesses, and is reportedly no longer viewed internally as a “CEO-in-waiting” at the company.
However, it was always assumed he would not take over officially until after Buffett’s death. Buffett, who turns 95 in August, has always maintained that has no plans to retire.
The shock announcement came at the end of a five-hour question and answer period, though the billionaire did not take further questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett.
Abel, who was sitting next to Buffett on stage, reportedly had no warning.
Investors and analysts alike have said they believe Abel will do a good job running Berkshire Hathaway, and it is expected that he will preserve Buffett’s conservative approach to the business, as well as uphold the $865 billion conglomerate’s track record of investing in companies for the long haul.
“We have a very special company in Berkshire, but it’s that culture that makes it special, and that’s not going to change,” Abel said at a recent shareholder meeting.
Buffett backed Abel further on Saturday by pledging to keep his fortune invested in the company.
“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”
The thousands of people gathered for the conference in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company.
CFRA research analyst Cathy Seifert said it had to be hard for Buffett to reach this decision to step down.
“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert toldThe Associated Press. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”
Abel is well regarded by Berkshire’s managers and Buffett has praised his business acumen for years, though he will have big shoes to fill.
“I think the challenge he’s going to have is if anyone is going to give him Buffett or [former Vice Chairman Charlie] Munger’s pass card? Not a chance in God’s name,” said Cole Smead of Smead Capital Management.
Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshire’s companies.
