End of an era: Warren Buffett will ask Berkshire board to replace him as CEO with Greg Abel

Warren Buffett made a significant announcement in Omaha on Saturday, revealing his plans to recommend Greg Abel as his successor as CEO of Berkshire Hathaway by the end of the year. Despite being 94 years old and having designated Abel as his successor in 2021, the news came as a surprise to the shareholders gathered for the annual meeting. Buffett, known as an investing legend, shared his decision during the meeting, indicating that it was time for Abel, the current vice chairman of non-insurance operations for Berkshire, to take on the role of chief executive officer.

Buffett, who acquired a failing New England textile mill in 1965 and transformed it into a diverse conglomerate over six decades, is passing on the reins when Berkshire shares are at a record high, with the conglomerate having a market cap of nearly $1.2 trillion. While Buffett expressed his willingness to assist and offer guidance, he emphasized that Abel would have the final say on company operations and capital allocation.

During the shareholder meeting, Buffett praised Abel’s hands-on management style, expressing confidence in his ability to lead Berkshire successfully. Abel, with a 25-year tenure at Berkshire and experience in energy businesses, affirmed his commitment to maintaining Buffett’s value investing approach and strategic capital allocation.

The roles of Buffett and Abel going forward, including whether Abel will also assume the chairman position, remain uncertain and are expected to be discussed at a future board meeting. Despite the surprise nature of the announcement, the shareholders showed their appreciation for Buffett with a standing ovation at the conclusion of the meeting.