In a move that sent ripples through the global financial markets, legendary investor Warren Buffett revealed on Saturday that he plans to resign as CEO of Berkshire Hathaway at the end of the year, capping a remarkable six-decade tenure that transformed a modest textile company into a $1.1 trillion conglomerate. The 94-year-old “Oracle of Omaha,” known for his folksy wisdom and unparalleled track record in value investing, shared the news during the company’s annual shareholder meeting, drawing a standing ovation from the tens of thousands of attendees packed into the CHI Health Center arena.
Buffett, who has steered Berkshire since 1965, addressed the crowd with characteristic candor, stating, “I think the time has arrived where Greg should become the chief executive of the company at year-end.” He was referring to Greg Abel, the 62-year-old vice chairman who oversees the company’s non-insurance operations and has long been groomed as his successor. Abel, a 25-year veteran at Berkshire, will assume the CEO role pending formal approval by the board, which Buffett said would convene soon to discuss the transition.
The announcement, which caught even Abel and most board members by surprise—only Buffett’s children, Howard and Susie, had prior knowledge—marks the end of an era for one of America’s most iconic business figures. Under Buffett’s leadership, Berkshire Hathaway’s shares have compounded at an astonishing average annual rate of nearly 20%, dwarfing the S&P 500’s 10% gain over the same period. The company’s market value soared from a few million dollars in 1965 to over $1 trillion today, fueled by savvy investments in blue-chip stocks like Apple and Coca-Cola, as well as wholly owned subsidiaries including Geico, BNSF Railway, Dairy Queen, and Duracell.
Buffett, whose personal net worth stands at $169 billion, emphasized that his departure from the CEO suite won’t mean a full retreat from the company. “I’m not going to sit at home and watch soap operas,” he quipped in a recent interview, adding that he intends to continue visiting Berkshire’s Omaha headquarters to offer investment insights and counsel. He also reaffirmed his commitment to philanthropy, vowing, “I have no intention, zero, of selling one share of Berkshire Hathaway. It will get given away.” This aligns with his long-standing pledge to donate over 99% of his fortune, much of it to causes championed by the Bill & Melinda Gates Foundation.
The news overshadowed Berkshire’s latest quarterly earnings report, which showed a robust cash hoard of $348 billion—more than McDonald’s entire market cap—and steady growth across its diverse portfolio. Analysts were quick to praise the succession plan, with CFRA Research’s Cathy Seifert noting, “You’re buying a stock and you’re also getting the investing prowess of a legend. With that legend gone, what is the value?” Yet, many expressed confidence in Abel’s ability to maintain the “Buffett premium,” citing his hands-on management of energy giant Berkshire Hathaway Energy and his alignment with Buffett’s disciplined, fundamentals-driven approach.
Tributes poured in from business leaders worldwide. Apple CEO Tim Cook, whose company remains Berkshire’s largest holding, posted on X: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom.” Charlie Munger, Buffett’s late longtime partner who passed away in 2023, had publicly endorsed Abel as successor years earlier, a nod that Buffett reiterated with high praise for Abel’s “energy, effectiveness, and leadership.”
Buffett’s decision comes after years of subtle hints about mortality. In his 2023 shareholder letter, he wrote of being in “extra innings,” acknowledging the passage of time while expressing no rush to step aside. But at 94, and following Munger’s death, Buffett admitted a “stark realization” that it was time to hand over the reins fully, calling it “unfair” to delay Abel’s opportunity any longer.
Wall Street’s initial reaction was measured, with Berkshire Class B shares dipping slightly in after-hours trading before stabilizing. Investors, long prepared for this moment, view the transition as a testament to Buffett’s meticulous planning. As one shareholder put it during the Q&A session, “Warren built this to last beyond him—and it will.”
Buffett’s legacy extends far beyond balance sheets. His annual letters to shareholders, blending investment philosophy with homespun advice, have become bibles for aspiring investors. “Find your bullseye of what you’re working on and let the other things fall away,” he once told Melinda French Gates—a mantra that guided his own career of patience, integrity, and unrelenting focus on long-term value.
As the sun sets on Buffett’s CEO chapter, the question lingers: Can anyone truly follow the maestro? For now, Berkshire Hathaway—and the investing world—watches with optimism as the baton passes to the next generation.