Berkshire’s Warren Buffett to retire, asks board to replace him with Greg Abel

An era came to a close in Omaha as Warren Buffett made a surprising announcement at the annual Berkshire Hathaway meeting. The 94-year-old investing legend revealed his plans to ask the board to appoint Greg Abel as CEO by the end of the year. While Abel had been designated as the successor in 2021, the news still caught many shareholders off guard.

Buffett, who famously bought a failing textile mill in 1965 and transformed it into a conglomerate with a market cap of nearly $1.2 trillion, expressed confidence in Abel’s ability to lead the company. Despite stepping down as CEO, Buffett assured shareholders that he would still be involved in the company and would not sell any of his $160 billion worth of Berkshire shares.

Abel, currently the vice chairman of non-insurance operations for Berkshire, has been with the company for 25 years. He is praised for his hands-on managerial style, which Buffett believes is better suited for overseeing the conglomerate’s 60-plus subsidiaries. Abel has committed to continuing Buffett’s patient value investing approach and deploying Berkshire’s massive cash reserves when promising opportunities arise.

Following the announcement, Buffett and Abel discussed the former’s future role within the company. It remains to be seen whether Abel will also take on the chairman position, currently held by Buffett. The decision could potentially impact the appointment of Howie Buffett, Warren’s son, as nonexecutive chairman after his father’s passing.

Despite the unexpected turn of events, the shareholders at the meeting showed their appreciation for Buffett with a standing ovation. The transition to Abel as CEO marks a new chapter for Berkshire Hathaway, with Buffett confident in the company’s future under Abel’s leadership.

As the news settles in, stakeholders and industry experts eagerly anticipate the next steps for Berkshire Hathaway under Greg Abel’s stewardship. The legacy of Warren Buffett will undoubtedly continue to shape the company’s trajectory, with Abel poised to steer the conglomerate towards continued success.