Warren Buffett will step down as chief executive of Berkshire Hathaway on December 31, pulling a curtain down on one of the longest and most influential runs in American business history. The plan was first revealed at Berkshire’s annual meeting in May 2025, catching many shareholders by surprise even though Buffett had been preparing the ground for years. At 95, Buffett said the timing felt right. He didn’t hesitate speaking about slowing down, occasional forgetfulness and reduced stamina, but added that the company he built was ready to run without him.
What comes next for Berkshire
Greg Abel, 62, will take over as chief executive on January 1, 2026. A Canadian native and trained accountant, Abel has been with Berkshire for decades. He has been in charge of major parts of the business, including energy, railroads and consumer operations. Buffett has always praised his energy, judgment and deep understanding of Berkshire’s culture.
Abel has said he does not plan to make changes. The company’s buy-and-hold philosophy, decentralised structure and long-term focus will remain intact. Tomorrow, Buffett will officially hand over the CEO title. Buffett will remain involved as non-executive chairman, keeping a close eye on the business while stepping away from the chief executive role he has held for more than six decades.
Greg Abel, who currently runs Berkshire’s non-insurance businesses, is not known as a stock picker. He rose through Berkshire’s energy division. That makes the recent departure of Todd Combs, one of Buffett’s top investment deputies, to JPMorgan a concern for some observers.
What changes and what doesn’t
When Buffett eventually retires, the most visible change will be symbolic rather than operational. His presence, reputation, and shareholder letters have long been associated with Berkshire’s identity.
However, analysts say the company’s decentralised model means there is unlikely to be a sudden disruption. Berkshire owns businesses across insurance, energy, railroads, manufacturing, and retail, many of which operate independently. Buffett has also made clear that investment decisions are no longer solely dependent on him. Portfolio manager Ted Weschler already handles large portions of Berkshire’s investments.
Warren Buffett retiring: How markets may react
Markets are likely to react emotionally rather than aggressively, for a short while. Buffett is not just a CEO, he is seen as the face of American capitalism and long-term investing. That said, many investors have already priced in the idea of a post-Buffett Berkshire. The company’s clear succession plan has helped reduce uncertainty, and analysts generally agree that the transition would be smoother.
Big decisions ahead for Abel
Greg Abel is about to face his first real test at Berkshire Hathaway. The company is sitting on a massive pile of cash, about $380 billion. When interest rates are high, holding that much cash is not a big problem. But as rates start to fall, that money earns less.
Berkshire could look at buying another railway or increasing its stake in insurance firm Chubb, but the most likely moves are in utilities or Japanese trading companies, where Abel has experience. That cash could also be valuable if markets crash, though without Warren Buffett, Berkshire may no longer have the same influence or be the first call in a crisis, as it was in 2008.
Many investors now dream of building a “mini-Berkshire”. Bill Ackman has said he hopes to do something similar through Howard Hughes.
Warren Buffett: A life built on patience
Buffett’s story has never been about speed or glamour. Since 1952, he has lived in the same house in Omaha’s Dundee neighbourhood. He always avoided flashy lifestyles and trendy investing ideas, choosing instead to focus on patience, discipline and long-term thinking.
Again and again, in interviews and in his famous shareholder letters, Buffett offered the same simple advice — find good businesses run by capable people, buy them at fair prices, and then leave them alone.
He often said that the secret was enjoying the work itself, not chasing some future payoff. In a 1999 interview, Buffett explained that he had fun doing what he loved every day, whether delivering newspapers as a teenager or running Berkshire Hathaway. “I have a lot of fun doing what I do every day. I’ve had fun ever since I started delivering papers when I was 13. You better enjoy it as you go along. The idea that you’re going to have a lot of fun 30 years from now, or if you have $10 million, the trick is to enjoy what you’re doing that day. And I’ve always done that.”
Writing the ending before it arrives
Every spring, thousands of shareholders travel to Omaha to hear Buffett speak for hours about business lessons that often come with a dose of humour and moral reflection. His longtime partner, Charlie Munger, once gave him advice that remained with him — write your obituary early, then live in a way that earns it.
That belief has shaped his actions in recent years. Last month, Buffett sped up the transfer of Berkshire stock worth about $1.3 billion to foundations run by his three children. In his Thanksgiving letter, he reminded readers that success is not about money or titles, but about how you treat people.
Berkshire Hathaway: A company like no other
Berkshire Hathaway is not just another large American company. It is America’s ninth-most-valuable firm, and easily one of its strangest. It is a financial giant, the country’s second-largest property and liability insurer. It holds stocks, bonds and cash worth nearly $700 billion. It is also an industrial empire, controlling around 200 businesses.
Beyond that, Berkshire is almost a belief system. The 1934 book Security Analysis by Benjamin Graham and David Dodd is treated like scripture. Every year, Buffett delivers what feels like sermons at Berkshire’s shareholder meeting in Omaha.
Following Buffett will not be easy
Berkshire has long revolved around Buffett himself. Since Buffett took control in the 1960s, Berkshire shares have beaten the S&P 500 by a wide margin. That record makes the transition to Greg Abel one of the most closely watched successions in corporate America.