In an unexpected announcement that concluded nearly five hours of Q&A at Berkshire Hathaway’s 2025 annual shareholders meeting in Omaha, Warren Buffett, the 94-year-old investing icon, revealed he will step down as CEO by the end of this year. This move marks the end of a legendary six-decade reign that turned Buffett into one of the world’s most revered and successful investors.

The surprise statement came without warning—even to key players at the company. Buffett informed only his two children, Howard and Susie Buffett, prior to the announcement. Notably, Greg Abel, widely regarded as Buffett’s successor and seated beside him on stage, was also unaware until the moment it was revealed.

“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” said Buffett, addressing the crowd that included 40,000 attendees.

Greg Abel Named Successor to Warren Buffett

Greg Abel, currently the Vice Chairman of Non-Insurance Operations, is now officially Buffett’s hand-picked successor. He took the stage later, alone, to lead the formal proceedings and acknowledge the moment.

“I just want to say I couldn't be more humbled and honored to be part of Berkshire as we go forward,” said Abel.

Abel has long been seen as Buffett’s heir apparent, especially after Charlie Munger’s death in 2023 and with Ajit Jain focused on the insurance side of the business. With this transition, Abel will now take control of the entire empire, including both non-insurance and insurance operations, and the firm’s substantial investment decisions—responsibilities Buffett previously held closely.

Buffett assured investors that while he is retiring as CEO, his faith in Berkshire’s future remains unwavering:

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually.”

Buffett’s Remarkable Legacy

Under Buffett's leadership, Berkshire Hathaway delivered a compounded annual return of 19.9%, compared to the S&P 500’s 10.4%, making it one of the most successful investment stories in history.

He became a market-mover whose every move—be it acquiring shares in Apple or Coca-Cola—could influence the stock market globally. His value investing philosophy, focus on fundamentals, and emphasis on long-term thinking earned him the title of "Oracle of Omaha."

Over the years, Berkshire evolved from a struggling textile company into a conglomerate valued at over $800 billion, housing iconic businesses like Geico, BNSF Railway, Dairy Queen, and See’s Candies.

Mixed Reactions to the Transition

While the announcement was unexpected, most analysts believe the move was inevitable and that Abel was the natural choice.

CFRA analyst Cathy Seifert said, “This was probably a very tough decision for him, but better to leave on your own terms.” She expects the company to adopt a "business-as-usual" approach under Abel’s leadership.

Despite being praised for his business sense and leadership style, Abel lacks Buffett’s charisma and massive influence. He is respected by company managers but not known for public appearances or shareholder interaction.

Omar Malik of Hosking Partners commented, “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.”

Challenges Ahead for Greg Abel

Abel’s leadership will not be without challenges. One major point is that unlike Buffett, Abel does not own a significant share of Berkshire stock, which may raise concerns over alignment with long-term shareholders.

Cole Smead of Smead Capital Management said, “If anyone is going to give him Buffett or Munger's pass card? Not a chance in God's name.” His remark reflects a widely held belief that Abel will be judged more critically due to the high bar set by Buffett and Munger.

Buffett’s recent performance may have hinted at the coming shift. Analysts noted that he appeared less sharp, made math errors, and occasionally wandered off-topic during the Q&A, signalling it might be the right time to step back.

Buffett Criticises Trump’s Trade Policy

Apart from the leadership announcement, Buffett also used the annual meeting platform to criticize Donald Trump’s trade policies, issuing a warning that “trade should not be a weapon.”

“There’s no question that trade can be an act of war,” Buffett cautioned.

He argued that tariffs have heightened global instability and alienated U.S. allies. His comments implied that the long-term economic damage from isolationist policies could outweigh short-term gains.

“It’s a big mistake 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,” Buffett said.

Berkshire’s Financial Position Remains Strong

Despite ongoing market volatility due to tariff tensions, Buffett reassured investors that Berkshire is well-capitalised and ready for any economic downturn.

The company is currently holding a record $347.7 billion in cash, waiting for the right investment opportunities.

He emphasized that this isn’t a dramatic bear market and compared it favourably to the Great Depression. He also noted that no stock buybacks have occurred this year because “they don’t seem to be a bargain.”

Investor Chris Bloomstran, president of Semper Augustus Investments Group, added, “Berkshire needs a crisis. I mean Berkshire thrives in crisis.” His statement reflects confidence that Berkshire’s strength lies in its resilience and its ability to make bold moves when others are retreating.

Shareholders React to the Historic Moment

This year’s meeting drew 40,000 attendees, including Hillary Rodham Clinton, and long-time investors like 72-year-old Devan Bisher, who has been with Berkshire since the 1980s.

“It’s been a good train to ride,” Bisher said. “And I’m going to stay with it.”

While many were surprised by Buffett’s announcement, most were grateful for his years of leadership and expressed hope and confidence in Abel’s capabilities.

Conclusion: End of an Era, Beginning of a New One

Warren Buffett’s retirement marks the end of a transformational era not just for Berkshire Hathaway, but for global investing as a whole. His influence, humility, and strategic brilliance will be deeply missed, but his legacy and the system he built continue to guide the company forward.

As Greg Abel steps into his shoes, investors and analysts will watch closely. While he may not replicate Buffett’s magic, his operational expertise and steady hand could prove to be exactly what Berkshire needs in a post-Buffett world.

“I believe Berkshire Hathaway’s best days are ahead,” Buffett said. Judging by the crowd’s standing ovation, the shareholders agree.

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