In a major announcement that signals the end of an era at Berkshire Hathaway, Warren Buffett on Saturday revealed his intention to step down as CEO by the end of this year. The 94-year-old billionaire investor said he will recommend Greg Abel, currently Vice Chairman, as his successor to lead the $865 billion conglomerate.
The announcement came at the conclusion of a five-hour Q&A session with shareholders, leaving no room for further discussion. Only Buffett’s children, Howard and Susie—both board members—had prior knowledge of the decision. Notably, Abel himself, who was seated beside Buffett, was unaware of the impending announcement.
“I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,” Buffett stated, officially signalling his transition.
Who is Greg Abel?
Greg Abel, 62, has been with Berkshire Hathaway for over 25 years and has long been viewed as Buffett’s heir apparent. Born in Edmonton, Alberta, Abel came from humble beginnings. According to the Horatio Alger Association, which honored him in 2018, he supported himself through college with odd jobs such as cleaning bottles and servicing fire extinguishers.
A graduate of the University of Alberta in 1984, Abel began his career at PricewaterhouseCoopers before joining CalEnergy. He became part of Berkshire Hathaway when it acquired MidAmerican Energy in 1999. Rising through the ranks, Abel was appointed CEO of MidAmerican in 2008 and currently oversees Berkshire’s vast portfolio of non-insurance businesses, including BNSF Railway, Berkshire Hathaway Energy, and several retail, industrial, and chemical units.
Taking the Helm
While Abel has successfully led Berkshire’s non-insurance operations, he has yet to handle the group’s insurance and investment portfolios—areas that have defined Buffett’s legacy. These responsibilities will now fall under Abel’s domain, with Vice Chairman Ajit Jain continuing to support insurance-related functions.
Despite questions about his investment track record, investors reportedly have confidence in Abel’s leadership. Buffett’s endorsement was further reinforced when he confirmed that he will not sell any of his shares in the company during the transition.
Abel faces the challenge of upholding Buffett’s legacy of consistent long-term investment and capital discipline, even as he inherits a significantly smaller ownership stake than Buffett’s 30%.
As Berkshire prepares for a new chapter, Abel’s stewardship will be closely watched to see whether he can preserve the culture and performance that made the company an iconic American success story.