9 hours ago
In a surprise move that closed out a nearly five-hour Q&A session at Berkshire Hathaway’s annual shareholders meeting in Omaha on Saturday, Warren Buffett announced he will retire as CEO by the end of the year, ending an iconic six-decade leadership tenure that transformed him into the world’s most respected investor.
“I think the time has arrived where Greg (Abel) should become the chief executive officer of the company at year end,” said the 94-year-old Buffett, who made the announcement without fielding any questions and revealed only two board members—his children Howard and Susie Buffett—were informed beforehand. Even Greg Abel, seated next to him on stage, received no prior notice.
Warren Buffett's successor
Buffett plans to formally recommend Abel, currently vice chairman overseeing all non-insurance operations, to the board on Sunday. Abel returned alone to the stage an hour later to lead the formal proceedings and acknowledged the weight of the moment.
“I just want to say I couldn't be more humbled and honored to be part of Berkshire as we go forward,” he said.
Long viewed as Buffett’s heir apparent, Abel will now assume full control of Berkshire, including its storied insurance operations and the firm’s massive investment decisions — both previously held close by Buffett.
Despite stepping down, Buffett assured shareholders of his unwavering confidence in Berkshire’s future. “I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” he said.
“The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine.” His words were met with a standing ovation from the thousands gathered in Omaha.
Warren Buffett's influence
Under Buffett’s leadership, Berkshire Hathaway produced a compounded annual return of 19.9%, nearly doubling the S&P 500’s 10.4% over the same period. His influence was so profound that any investment move he made could sway global markets.
Analysts said the transition marks a historic shift, but few were surprised by Abel’s ascension. “This was probably a very tough decision for him, but better to leave on your own terms,” said CFRA analyst Cathy Seifert. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”
Abel’s strengths are well recognised within Berkshire. While he may lack Buffett’s star power and market-moving reputation, investors and company managers praise his business acumen and thorough, hands-on style.
“The question is will he allocate capital as dynamically as Warren? And the answer is no. But I think he'll do a fine job with the support of the others,” said investment manager Omar Malik of Hosking Partners.
Greg Abel's challenges
Still, challenges remain. “I think the challenge he's going to have is if anyone is going to give him Buffett or [Charlie] Munger's pass card? Not a chance in God's name,” said Cole Smead of Smead Capital Management, noting that Abel does not control a significant share of Berkshire stock as Buffett did.
Buffett’s decision to retire may not come as a complete shock to all. Smead said he sensed the change was near after watching the event. “He wasn’t as sharp as in past years,” he said, pointing out a math error and moments where Buffett strayed from answering questions directly.
Steven Check of Check Capital Management echoed a sentiment felt by many in the arena. “I didn’t think he would retire while his mind is still working so well, nor did I think it'd happen at the annual meeting,” he said. “But overall I’m very happy for him.”
Buffett criticises Trump's trade policies
Earlier in the meeting, Buffett offered sharp criticism of President Donald Trump’s trade policies, warning that “trade should not be a weapon,” and cautioning that “there’s no question that trade can be an act of war.”
Buffett said that tariffs have increased global instability and alienated US allies. “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” he said.
Despite recent market volatility following the latest tariff announcements, Buffett downplayed concerns and revealed that Berkshire is holding a record $347.7 billion in cash, waiting for opportunities.
“This has not been a dramatic bear market or anything of the sort,” he said, comparing it to the far steeper drop during the Great Depression.
He added that no stock buybacks have been made this year because “they don’t seem to be a bargain.”
Investor Chris Bloomstran, president of Semper Augustus Investments Group, said at the Gabelli investment conference that Berkshire may be poised to thrive in future downturns. “Berkshire needs a crisis. I mean Berkshire thrives in crisis,” he said.
This year’s annual meeting drew its usual 40,000 attendees, including notable figures like Hillary Rodham Clinton and loyal investors like 72-year-old Devan Bisher, who began buying Berkshire stock in the 1980s. “It’s been a good train to ride,” Bisher said. “And I’m going to stay with it.”
With inputs from AP
