Warren Buffett, the legendary investor and long-time CEO of Berkshire Hathaway, announced Saturday that he will step down from the company’s top role at the end of 2025. His handpicked successor, Greg Abel, is set to take over as CEO following Buffett’s departure.
Buffett, now 94 years old, shared the news during Berkshire’s annual shareholder meeting in Omaha, Nebraska. “I think the time has arrived where Greg should become the chief executive officer of the company at year end,” he told investors. The announcement comes ahead of a formal board meeting on Sunday, where further leadership details will be discussed.
While Buffett confirmed he would relinquish the CEO position, he hinted that he will remain involved with Berkshire Hathaway in some capacity. “I’ll hang around,” he said, suggesting an advisory or honorary role might be considered. Both Buffett and Abel are expected to outline the nature of Buffett’s ongoing involvement after Sunday’s board discussions.
Who Is Greg Abel?
Greg Abel currently serves as Berkshire Hathaway’s vice chairman for non-insurance operations, overseeing key businesses such as energy, railroads, and utilities. He’s been widely seen as Buffett’s successor for years, though until now, no specific timeline had been announced.
Abel, who is in his early 60s, has earned Buffett’s trust through decades of consistent performance and his ability to manage the conglomerate’s sprawling non-insurance operations. Investors and analysts alike view him as a steady hand who can continue Berkshire’s long-term, value-focused investment philosophy.
Berkshire’s Technology Bets Still Hold Weight
Though Buffett has famously been cautious about investing in high-growth tech companies, Berkshire Hathaway has made some bold moves in recent years. The most prominent is its sizable investment in Apple, which even after a partial sell-off last year, still makes up over 20% of Berkshire’s portfolio.
That Apple stake represents one of Buffett’s most successful investments. It helped fuel record profits for the firm and reshaped public perception of Berkshire’s approach to innovation and growth sectors. Abel’s leadership is expected to maintain a similar balance between traditional industries and strategic tech exposure.
What’s Next for Buffett and Berkshire?
Buffett’s departure as CEO marks the end of an era in American business. Since taking control of Berkshire Hathaway in the 1960s, he has turned a struggling textile firm into one of the world’s most valuable companies. Under his guidance, Berkshire built a diverse portfolio that includes companies like Geico, BNSF Railway, Dairy Queen, and major equity stakes in Coca-Cola, American Express, and Apple.
Buffett’s long-time business partner Charlie Munger, who passed away in 2023 at the age of 99, had previously supported Abel as the natural choice for succession. With Buffett now setting a timeline, the leadership transition appears to be finally underway.
Despite stepping back, Buffett’s continued involvement is seen as a stabilizing factor. His deep knowledge, influence, and reputation will likely still play a role in shaping major decisions, even if he’s no longer CEO.
The market’s reaction to the announcement is expected to be muted in the short term, given that Abel’s succession had long been anticipated. Still, investors will watch closely for any additional governance changes or shifts in strategy.
Berkshire Hathaway has maintained a conservative and decentralized approach to managing its businesses. With Abel at the helm, that philosophy is expected to remain largely intact. However, any adjustments to capital allocation, tech investments, or acquisition strategy could signal the beginning of a new chapter for the company.
For now, Buffett’s choice of timing gives the company and its shareholders ample time to prepare. It also reinforces Berkshire’s image as a carefully managed conglomerate that values stability, succession planning, and long-term vision.
