American billionaire investor and philanthropist Warren Buffett, often hailed as the “Oracle of Omaha,” has announced plans to step down as Berkshire Hathaway’s Chief Executive Officer (CEO), marking the end of an extraordinary era in global finance.
At the end of the company’s annual shareholder meeting, Buffet disclosed, “I think the time has arrived where Greg should become the chief executive officer of the company at year-end.”
Buffett took control of Berkshire Hathaway in the mid-1960s, initially as a value play. But instead of trying to salvage the declining textile business, he used it as a holding company to acquire undervalued but fundamentally sound companies. His investment philosophy centered on value investing, long-term growth, and ethical business practices has made him a revered figure in the financial world. Under his leadership, Berkshire Hathaway acquired and grew stakes in iconic companies such as Coca-Cola, Apple, American Express, and BNSF Railway.
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Buffett built Berkshire into a $900+ billion powerhouse, investing with a mindset that emphasized long-term value, emotional discipline, and intelligent risk management. His position as CEO since 1970, led the company to a 19.9% annualized return, far outpacing the S&P 500’s 10.4%, turning $10,000 into over $500M. Q1 2025 earnings fell 14.1% to $9.64B, but cash reserves hit $347.7B.
However, Buffett has previously indicated that succession plans are firmly in place. Greg Abel, who oversees Berkshire Hathaway’s non-insurance operations, is widely expected to assume the CEO role upon his departure.
Announcing his step down as CEO at an annual shareholder’s meeting, Buffett hailed Abel’s performance in front of some 40,000 shareholders, saying his more hands-on managerial style is working better for Berkshire’s 60-plus subsidiaries.
“It’s working way better with Greg than with me because, you know, I didn’t want to work as hard as he works,” Buffett said. “I could get away with it because we’ve got a basically good business, very good business.”
Greg Abel assumed a broader role at the company in 2018 thanks to a promotion that tasked him with supervising Berkshire’s non-insurance businesses. Now, pending board approval, the 62-year-old will oversee a conglomerate with nearly 400,000 employees. A native of Edmonton and former hockey player, Abel has worked closely with Buffett since 2000 when Berkshire acquired MidAmerican, where he was president. He rose steadily through the ranks, most recently as vice chairman, and was worth an estimated $484 million in 2021.
Buffett has praised Abel’s business acumen and leadership, saying in 2023, that Abel “does all the work and I take all the bows.” Abel plans to uphold the company’s core investment philosophy and maintain its “fortress of a balance sheet” to avoid outside financial reliance.
Investors and shareholders expect that if Abel does assume the role, he will maintain Berkshire Hathaway’s investment philosophy. Last week, he disclosed to shareholders that he would start by maintaining the company’s fortress of a balance sheet, which allows it to make large investments without relying on banks,
Buffett, who owns more than $160 billion in Berkshire as its largest shareholder, said he wouldn’t sell a single share of the stock after he transitions to this new phase. His decision signals a historic transition for the company he transformed into a $700 billion enterprise.
Despite his departure as CEO of Berkshire, the “Oracle of Omaha” said he will still hang around to help, but the final word on company operations and capital deployment would be with Abel, 62, currently the vice chairman of non-insurance operations for Berkshire.
As Buffett steps aside, the financial community reflects on a legacy defined by wisdom, discipline, and humility. While his formal role may change, his influence on Berkshire Hathaway and generations of investors will endure. His departure will test the market’s confidence in the company’s future leadership and performance without its iconic figurehead. However, the fact that he stayed on so long, gradually delegating duties, is likely to ease investor concerns.