Warren Buffett’s stunning announcement to step down as CEO of Berkshire Hathaway after nearly six decades signals the end of an era for one of America’s most successful corporate leaders and his $1 trillion conglomerate.
Key Takeaways
- Warren Buffett, 94, will resign as CEO of Berkshire Hathaway at the end of 2025 after 55 years at the helm
- Greg Abel, currently CEO of Berkshire Hathaway Energy, will take over as chief executive
- Buffett plans to retain his $160 billion in shares and remain involved with the company in an advisory capacity
- Buffett’s son, Howard, is expected to become the non-executive chairman, maintaining family influence in the company
- The announcement came as a surprise to most board members, but had been planned with Buffett’s children
The End of a Corporate Dynasty
At Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska, Warren Buffett revealed his plans to step down as CEO at the end of the year. The 94-year-old investing legend will hand over the reins to Greg Abel, who has been carefully groomed for the position since being publicly identified as Buffett’s likely successor in 2021. The announcement marks the culmination of years of succession planning for the investment conglomerate that Buffett transformed from a struggling textile business into one of the world’s most valuable companies.
Buffett informed the crowd that only two board members—his children, Howard and Susie—knew of his decision beforehand. “Tomorrow, we’re having a board meeting of Berkshire, and we have 11 directors. Two of the directors, who are my children, Howie and Susie, know what I’m going to talk about there. The rest of them, this will come as news to you, but I think the time has arrived where Greg should become the chief executive officer of the company at year’s end,” said Warren Buffett, CEO of Berkshire Hathaway.
#BREAKING #USA JUST IN: Warren Buffett to Step Down as Berkshire Hathaway CEO by Year-End, Greg Abel to Succeed.
American billionaire investor Warren Buffett announced he will step down as CEO of Berkshire Hathaway by the end of 2025.
Buffett, 94, who has led the conglomerate… pic.twitter.com/ILWooGPF2e
— The National Independent (@NationalIndNews) May 3, 2025
The New Leadership Structure
Greg Abel, who currently oversees all of Berkshire’s non-insurance operations as CEO of Berkshire Hathaway Energy, will assume the top position after joining the company in 2000. Abel’s association with Berkshire began even earlier when he joined Berkshire Hathaway Energy in 1992, before it was acquired by Berkshire. Despite Abel being based in Des Moines, Iowa, the company headquarters will remain in Omaha, preserving the midwestern roots that Buffett has long cherished.
“I would add this, 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,” said Warren Buffett, CEO of Berkshire Hathaway.
Howard Buffett, Warren’s son, is expected to become non-executive chairman of Berkshire Hathaway, ensuring the Buffett family maintains influence in the company’s future direction. This two-pronged leadership approach follows a carefully orchestrated succession plan years in the making. When Berkshire Vice Chairman Charlie Munger, Buffett’s long-time business partner, passed away last year at age 99, it highlighted the urgency of finalizing the leadership transition.
Buffett’s Enduring Influence
Despite stepping down as CEO, Buffett made it clear he’s not walking away entirely from the company he built. He plans to retain his approximately $160 billion in Berkshire shares and will remain available for consultation. The “Oracle of Omaha” emphasized that while Abel will have the final word on decisions, he hopes to continue providing value in certain situations, allowing for a gradual transition of power rather than an abrupt departure.
“I think they’ll be unanimously in favor of it, and that would mean that at year-end, Greg would be the chief executive officer of Berkshire. I would still hang around and conceivably be useful in a few cases, but the final word would be what Greg said,” said Warren Buffett, CEO of Berkshire Hathaway.
The announcement stands in stark contrast to Buffett’s previously stated plan to work until he was unable to continue. His change of heart appears to stem from confidence in Abel’s capabilities and a desire to oversee a smooth transition while still able to provide guidance. After the announcement, Buffett received a standing ovation from shareholders, many of whom have followed his investment wisdom for decades and benefited tremendously from his stewardship of Berkshire.
Looking to the Future
Under Buffett’s leadership since 1965, Berkshire Hathaway has grown into a $1 trillion conglomerate with a diverse portfolio spanning energy, transportation, insurance, and real estate. The company owns major stakes in American staples like Apple, Bank of America, Coca-Cola, and American Express. As Abel prepares to take the helm, investors are watching closely to see how he will balance maintaining Buffett’s time-tested investment principles with navigating modern economic challenges.
During the shareholder meeting, Buffett also took time to address global trade issues, stating that “trade should not be a weapon,” and that America “should be looking to trade with the rest of the world. We should do what we do best, and they should do what they do best.” These comments reflected Buffett’s long-standing belief in free market principles even as he prepares to step back from his corporate responsibilities.
For conservative investors who have admired Buffett’s business acumen despite occasional political differences, the carefully planned succession represents responsible stewardship of shareholder value. The transition’s orderly nature and Buffett’s continued financial commitment to Berkshire demonstrate his confidence that the company’s best days remain ahead, even as its legendary founder takes his final bow as CEO.
