In a historic announcement that marks the end of an era in American business, Warren Buffett revealed he will step down as CEO of Berkshire Hathaway at the end of 2025. The 94-year-old investing legend made the surprise declaration during the company’s annual shareholder meeting in Omaha on May 3, naming Vice Chairman Greg Abel as his successor. This transition concludes Buffett’s remarkable six-decade leadership that transformed a struggling textile company into a trillion-dollar conglomerate spanning nearly 200 businesses across various sectors of the U.S. economy.
The Historic Announcement
“I think the time has arrived where Greg (Abel) should become the chief executive officer of the company at year end,” Buffett stated during the annual shareholder meeting in Omaha, Nebraska, on Saturday, May 3, 2025. The announcement came as a surprise conclusion to a nearly five-hour Q&A session, with only his children, Howard and Susie Buffett, having been informed beforehand. Even Greg Abel, seated beside Buffett on stage, received no prior notice of the decision.
The news was met with a standing ovation from the approximately 40,000 shareholders in attendance. Following the applause, Buffett humorously noted that “the emotion in that reaction could be viewed two ways”. The 94-year-old billionaire assured the audience that despite stepping down as CEO, he intends to retain all his Berkshire shares, stating, “I have no intention – zero – of selling one share of Berkshire Hathaway. I will give it away eventually”.
Buffett plans to formally recommend Abel to the board during a meeting scheduled for Sunday, May 4, with expectations of unanimous approval. The transition will mark the first leadership change at Berkshire Hathaway in over 50 years, concluding what many consider the most successful CEO tenure in modern business history.
Warren Buffett’s Legacy at Berkshire Hathaway
Warren Buffett’s journey with Berkshire Hathaway began in 1965 when he took control of what was then a failing textile business. Under his leadership as CEO and Chairman since 1970, Buffett transformed the company into a massive investment conglomerate valued at approximately $1.16 trillion. His investing prowess has earned him nicknames such as “The Oracle of Omaha” and created one of the greatest wealth-building stories in business history.
The numbers tell an extraordinary tale of success: Berkshire Hathaway produced a compounded annual return of 19.9% under Buffett’s leadership, nearly doubling the S&P 500’s 10.4% over the same period. This performance has made long-term Berkshire shareholders extraordinarily wealthy, while Buffett’s investment moves have often swayed global markets.
Despite amassing a fortune currently estimated at $154-168.2 billion (ranking him as the fourth-wealthiest person globally), Buffett has maintained his famously modest lifestyle. He continues to live in the same Omaha home he purchased for $31,500 back in 1958, embodying his philosophy of value investing and frugality. His annual salary as CEO has remained at just $100,000 for years, a fraction of what most executives of major companies receive.
Greg Abel: The New CEO
Greg Abel, 62, has been long viewed as Buffett’s heir apparent, having been officially designated as successor in 2021. An Edmonton, Alberta native, Abel has spent 25 years with Berkshire, currently serving as Vice Chairman overseeing all non-insurance operations, including BNSF Railway, Geico, and Dairy Queen.
Abel returned to the stage alone an hour after Buffett’s announcement to lead the formal proceedings, acknowledging the weight of his new responsibility: “I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward”. When asked to describe himself to investors, Abel characterized his management style as “more active” while emphasizing his positive approach and highlighting the exceptional team he works with.
Buffett has expressed strong confidence in Abel’s leadership abilities, stating that “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”. This extraordinary vote of confidence from Buffett suggests he believes Abel will not only maintain but potentially enhance Berkshire’s performance.
Industry observers note that while Abel may lack Buffett’s star power and market-moving reputation, he is well-respected within Berkshire for his business acumen and thorough, hands-on management style. Buffett has praised Abel’s leadership approach, stating, “It’s working much better with Greg than it did with me because I can afford to be less engaged”.
Transition Plan and Future Leadership Structure
The transition plan outlines a thoughtful approach to Berkshire’s leadership succession. Buffett will remain as chairman until his death, at which point his son, Howard Buffett, will assume the position. This arrangement aligns with Warren Buffett’s long-standing belief that while no member of the Buffett family should be involved in managing Berkshire after his departure, it would be prudent to have a family member serve as non-executive Chairman of the Board.
In Berkshire’s 2024 and 2025 proxy statements, the company outlined that “upon his death or inability to manage Berkshire, no member of the Buffett family will be involved in managing Berkshire but, as very substantial Berkshire shareholders, the Buffett family will assist the Board of Directors in picking and overseeing the CEO selected to succeed Mr. Buffett”. This plan has now been formalized with the selection of Abel as successor.
Buffett will remain involved in an advisory capacity after stepping down as CEO, though he emphasized that “the final word” will rest with Abel. This measured approach allows for continuity while empowering the new leadership to make independent decisions.
Market Reactions and Business Impact
Berkshire Hathaway has continued to thrive in 2025, with its stock rising 19% year-to-date, significantly outpacing the broader market. The company holds nearly 200 businesses and $264 billion in stock holdings, including substantial stakes in Apple, Bank of America, and American Express.
The company’s cash reserves reached an impressive $347 billion by the end of March 2025, providing Abel with substantial capital for potential acquisitions and investments16. During the meeting, Buffett downplayed recent market volatility, stating that “what has occurred in the last 30, 45 days is really nothing” and asserting that “this has not been a dramatic bear market or anything of the sort”.
Industry analysts expect the transition to maintain Berkshire’s business strategy and corporate culture. CFRA analyst Cathy Seifert noted, “This was probably a very tough decision for him, but better to leave on your own terms. I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire”.
Challenges and Opportunities Ahead
While Abel brings considerable experience and Buffett’s endorsement to his new role, he faces significant challenges. Investment manager Omar Malik of Hosking Partners observed, “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”.
Another challenge identified by observers is that Abel does not control a significant share of Berkshire stock as Buffett did, which could impact his influence and authority. Cole Smead of Smead Capital Management noted, “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”.
The transition occurs at an interesting economic moment, with Buffett using the meeting to address concerns about President Donald Trump’s trade policies. Buffett warned that “trade should not be a weapon” and cautioned that “there’s no question that trade can be an act of war”. He advised that the United States would benefit more if other countries shared in its prosperity rather than engaging in trade disputes.
Conclusion
Warren Buffett’s decision to step down as CEO of Berkshire Hathaway marks the end of one of the most successful and influential business careers in history. His 60-year transformation of a struggling textile company into a global investment powerhouse stands as a testament to his extraordinary vision and investing acumen.
As Greg Abel prepares to take the helm at the end of 2025, he inherits not only an exceptionally well-positioned company with abundant resources but also the challenge of following a business legend. Buffett’s vote of confidence in Abel’s abilities suggests that Berkshire’s future remains bright, even as the company transitions away from the leadership of its iconic founder. The business world will be watching closely as this historic transition unfolds, marking the beginning of a new chapter for one of America’s most successful companies and the conclusion of Warren Buffett’s remarkable tenure as CEO. As Tim Cook aptly stated, “There has never been anyone like Warren,” but with careful succession planning, Berkshire Hathaway appears well-positioned to continue its legacy of success under new leadership.
References:
Berkshire Hathaway OwnersWarren Buffett Stepping Aside at Berkshire Hathaway
Warren Buffett Berkshire Hathaway Meeting CNN
Berkshire Hathaway Meeting Buffett Speaks Reuters