Legendary American investor Warren Buffett will step down as the Chief Executive Officer (CEO) of Berkshire Hathaway at the end of the year, a decision that has shocked the world. On Sunday, May 4th, the company’s board of directors unanimously voted for Greg Abel to take over as President and CEO starting January 1, 2026, while Buffett will continue to serve as Chairman.
During the annual shareholders meeting held on Saturday, May 3rd, the 94-year-old Buffett unexpectedly announced his plan to resign as the company’s CEO by the end of the year and recommended Greg Abel, Vice Chairman overseeing non-insurance businesses, to succeed him as CEO. However, Buffett did not explicitly state whether he would remain as Chairman at the shareholders’ meeting. Nonetheless, he mentioned that after stepping down as CEO, he will stay with Berkshire Hathaway to offer assistance, with the “final decision-making authority” resting in the hands of 62-year-old Abel.
Buffett’s ongoing role as Chairman may provide some comfort to shareholders, as he will continue to assist Abel in seizing any major acquisition opportunities that may arise in future market turbulence. “I think if a major move were required, or something of the sort, I would be able to help out in various ways,” he said.
Abel, who will succeed as CEO, joined Berkshire Hathaway in 1999. In 2018, he was appointed as Vice Chairman, leading the company’s non-insurance businesses. As early as 2021, Abel was nominated as Buffett’s successor.
Since Buffett acquired Berkshire Hathaway, the company’s earnings per share have grown at a compound annual rate of 19.9%, nearly double the average annual increase of 10.4% for the S&P 500 index. Shareholder returns have reached a staggering 5,502,284%, meaning that $10,000 invested in Berkshire in 1965 is now worth over $500 million.