In a stunning announcement that reverberated throughout the financial world, Warren Buffett, the legendary 94-year-old CEO of Berkshire Hathaway, declared he would be stepping down from his role at the end of this year. This decision came during the annual general meeting held in Omaha, Nebraska, where thousands of shareholders were present. Buffett revealed that he would be handing over the reins to Greg Abel, the current vice-chairman who has been managing most of the conglomerate's investments.
The announcement shocked attendees, who responded with a lengthy standing ovation, honoring Buffett's remarkable 60-year leadership at Berkshire Hathaway. Buffett stated, “I think the time has arrived where Greg should become the chief executive officer of the company at year end.” He assured investors, “I have no intention – zero – of selling one share of Berkshire Hathaway. I will give it away eventually,” emphasizing his confidence in Abel’s ability to lead the company into the future.
Buffett's commitment to Berkshire Hathaway is evident in his decision to retain his shares, which he believes will perform better under Abel's management. The announcement was made at the conclusion of a five-hour question-and-answer session, and only Buffett’s children were aware of his retirement plans beforehand.
Greg Abel, 62, who has been Buffett’s designated successor since 2001, has a wealth of experience within the company, having served for 25 years. As the head of Berkshire Hathaway’s non-insurance businesses, Abel has overseen a diverse portfolio that includes fossil energy, chemicals, real estate, and retail operations. His readiness to take on the CEO role reflects Buffett's meticulous planning and foresight for the company’s future.
As news of Buffett’s retirement spread, prominent figures in the business community expressed their admiration. Jamie Dimon, CEO of JP Morgan, hailed Buffett as a symbol of American capitalism, stating, “I’ve learned so much from him to this very day, and I am honoured to call him a friend.” Similarly, Tim Cook, CEO of Apple, shared that there has never been anyone like Buffett, and his wisdom has inspired countless individuals, including himself.
Warren Buffett's leadership has been pivotal in transforming Berkshire Hathaway from a struggling textiles manufacturer into a massive conglomerate valued at approximately $1.03 trillion (£776 billion). Under his guidance, the company has expanded into various sectors, including insurance, railroads, and energy. Buffett's partnership with Charlie Munger, who passed away in 2023, has further solidified the company's standing in the market.
Buffett will conclude his illustrious career on a high note, as Berkshire Hathaway's class-A shares have surged approximately 20% this year alone. Over the past five years, these shares have more than tripled in value, reaching record highs recently.
While Buffett has been an influential figure in the Democratic Party, he did not endorse candidates Kamala Harris in 2024 or Joe Biden in 2020, despite previously backing Barack Obama and Hillary Clinton. He has also committed to donating 99.5% of his wealth to a charitable trust overseen by his children upon his passing, with a current net worth estimated at $168.2 billion.
During the annual meeting, Buffett also addressed concerns regarding Donald Trump’s tariffs, indicating that they could lead to global instability. He remarked, “There’s no question that trade can be an act of war,” emphasizing the importance of fostering positive relationships with the international community.
Buffett, often referred to as the “Sage of Omaha,” has been a student of investment principles since his early days at Columbia Business School, where he learned from the “father of value investing,” Benjamin Graham. His investment style, characterized by practical stock-picking strategies, has solidified his reputation as one of the best investors in the world.
With an annualized growth rate of 19.9% for Berkshire Hathaway shares since 1965, Buffett's legacy in the financial realm is undeniable. Despite facing controversies, including anti-trust investigations, his impact on investment and philanthropy continues to inspire future generations.
