Warren Buffett, the 94-year-old billionaire investor, announced on Saturday (May 3) that he will step down as CEO of Berkshire Hathaway by the end of the year. Buffett has led the company for 60 years, transforming it from a struggling textile firm into a $1 trillion conglomerate. He named Greg Abel, currently vice chairman, as his successor. Abel, 62, has been with Berkshire since 1999 and has served as vice chairman since 2018.
Buffett revealed his decision during Berkshire's annual meeting, stating, "I think the time has arrived where Greg should become the chief executive of the company at year end." He assured shareholders that he plans to remain involved with the company and has no intention of selling his shares, which are set to be donated after his death. Buffett praised Abel's leadership, saying, "I think the prospects of Berkshire will be better under Greg’s management than mine."
Abel, who oversees Berkshire's non-insurance operations, has been preparing for this role for years. He emphasized the strategic importance of Berkshire's $347 billion cash reserves, stating they provide stability and independence for the company.
Buffett's announcement was met with a standing ovation, acknowledging his remarkable tenure. His son, Howard, is expected to succeed him as non-executive chairman.