Warren Buffett, one of the most well-known and successful investors of all time, announced he is stepping down as CEO of Berkshire Hathaway. He shared the news on Saturday, May 3, during his 60th annual meeting.
Buffett has been discussing his eventual departure for decades, but at 94, he has decided to step down as CEO and pass the position to the company’s vice chairman, Greg Abel.
The company’s board met the following day and unanimously agreed with a vote to name Abel the successor of Buffett.
Greg Abel Identified as Future CEO
Abel joined Berkshire in 1999 as part of an acquisition. He was named CEO in 2008 of the MidAmerican subsidiary, later renamed Berkshire Hathaway Energy. Since 2018, Abel has been running Berkshire’s non-insurance operations as vice chairman with Ajit Jain.
Abel’s name has been mentioned as a potential successor to Buffett since 2014. In Buffett’s annual letter to shareholders, he expressed that they had the ideal person to assume the job of CEO upon his departure. His longtime right-hand man, Charlie Munger, validated the sentiment, and he described Abel and Jain as performers and said, “In some important ways, each is a better business executive than Buffett.”
Although Abel’s name had been mentioned for ten years as a possible successor, he had no prior knowledge of the announcement Buffett would make on Saturday to recommend him as the person to take his place as CEO. Buffett only discussed the decision with his two children, Susie and Howard, who also serve as members of the Berkshire board.
Buffett Outlines CEO Characteristics
Buffett, who has held the CEO position since 1970, shared his reflections on the ideal qualities of his successor in a letter to shareholders in 2014. He described a CEO who would uphold the position for the company, not for themselves. Buffett emphasized that financial motivation could not be at the core of his replacement’s character. Instead, he shared that the future CEO should prioritize the company’s non-economic values to maintain its success.
Being the “Tone at the top” was his key message, sharing that his successor’s behavior would be paramount in influencing managers down the line, as would their “ability to fight off the ABCs of business decay, which are arrogance, bureaucracy, and complacency.”
On Deck for Berkshire
Buffett shared that he has no intentions of selling his Berkshire shares as part of his transition out of the CEO position. The company confirmed that Buffett would remain as the board chair.
Abel will assume the responsibilities of CEO at the end of the year, bringing Berkshire into 2026 under new leadership. He will inherit a cash pile that has grown to $347.7 billion in 2025 and an investment portfolio that includes Apple, Bank of America, American Express, Coca-Cola, and Chevron. Berkshire’s stock closed at a record high the day before Buffett’s announcement.
