Jonathan Steepboard and Susan McGee
Omaha, Nebraska (Reuters) - Warren Buffett, who could become the world's most famous and respected investor career, said he will resign as CEO of Berkshire Hathaway at the end of 2025 and hand it over to Ins ropes for vice chairman Greg Abel.
The move made Berkshire an era after 60 years of Buffett's helm, which made him a household name, a billion-mile man and American success story.
"I think it's time for Greg to be the company's CEO by the end of the year," Buffett, 94, said Saturday, who held Berkshire's annual meeting in Omaha, adding that he was still "hanging around and imagined to be useful in a few cases," but the "final word" is Abel's.
The announcement sparked praise from CEO and investors for Buffett.
JPMorgan Chase & Co. "Warren Buffett represents all the benefits of American capitalism and America itself - investing in the growth of our country and its businesses with integrity, optimism and common sense."
"Never been a person like Warren, countless people, including myself, were inspired by his wisdom. Knowing him was one of the greatest privileges of my life," said Tim Cook, CEO of Apple, in an article on X.
Buffett's move will push Abel into the spotlight of Berkshire. Abel, who has long been identified by Berkshire as Buffett’s successor, may not have the star power of Buffett, although he is expected to retain the culture of the conglomerate.
Buffett said most boards of Abel and Berkshire's board were not aware of his plans before announcing, although Buffett told him two were directors. He said Berkshire's board of directors will meet on Sunday to discuss the transition.
Abel, 62, has been Berkshire’s vice chairman since 2018 and was appointed CEO of Buffett in 2021.
"I'm honored to be a member of Berkshire when we set out," Abel told shareholders.
Buffett also said he had a "zero" intention to sell any of his Berkshire stocks, and almost all of them would be donated after his death.
"The decision to retain every share is an economic decision, because I think Berkshire's prospects will be better than mine under Greg's management."
Excellent operation
The decision to decline was a staggering 60-year run, with Buffett turning Berkshire from a failed textile company to a $11.6 trillion group with U.S. economic enterprises.
According to Forbes magazine, Buffett's own wealth totaled $168.2 billion, almost all of which are Berkshire stocks.
Cole Smead, CEO of Smead Capital Management, said after Buffett announced, he turned to Bill Smead, the father who founded the company, and said: "Well, it's the end of an era. It's sad, but it's life."
Berkshire shares have risen 19% this year, while S&P 500 shares have fallen 3%.
Many investors see the management of conglomerates and Buffett as a safe haven for uncertainty, as well as the tariff policy of U.S. President Donald Trump.
"The question in the future is: when Buffett does not exist, will Berkshire still have Buffett advanced?" said Cathy Seifert, research analyst at CFRA. "You are buying stocks and you have gained the investment ability of Legend. What is the value as Legend disappears?"
"Greg can do better"
Abel has assumed many Buffett responsibilities, including for capital allocation.
Asked at the meeting how his oversight of Berkshire's 189 operations differs from Buffett's business, Abel said: "More active, but hopefully in a very positive way."
Buffett said Berkshire's board could arrange for the transfer of power in the next few months, and after Abel took over, he could "imagine it useful in a few situations."
"The fact that you can do well does not mean that you can't do better, and Greg can do better," Buffett told shareholders before the announcement.
Buffett calls Berkshire's annual shareholder weekend "Woodstock of the Capitalist" and attracts thousands of people to Omaha every year and conducts a series of shareholder activities throughout the city, including shopping.
The company said it intends to continue the weekend. Many shareholders said they would continue to attend after Buffett left, although many believed attendance would drop.
Buffett took over Berkshire in 1965, and his long-time friend and business partner, Charlie Munger, died in November 2023 and built it on a US success story.
Berkshire is headquartered in Omaha, Buffett and Munger, and now owns nearly 200 businesses, including Geico Car Insurance, BNSF Rail, Industrial and Chemical Corporation, Utilities, Utilities, Dairy Queen Ice Cream, Loom Underwear Fruit and See's Candies.
It also ended with $264 billion in stocks, including Apple, American Express and Bank of America.
"Omaha's Oracle"
Buffett is known as "Omaha's Oracle" for his successful investments and his folk wisdom and modest lifestyle.
Berkshire stock rose 5,502,284% from 1965 to 2024, and Buffett never moved out of the home that paid $31,500 in 1958.
Buffett is a disciple of economist Benjamin Graham, whose former professor emphasized the importance of corporate fundamentals rather than paying for assets.
This approach often makes it difficult to deploy Berkshire's growing cash hoard, which hit $347.7 billion in late March.
Abel joined former Central American Energy in 1992 and is now known as Berkshire Hathaway Energy, eight years after Berkshire took over. He later led the business for ten years.
If Buffett had a much greater fortune since 2006, his Berkshire stock has provided more than half of the shares to charities.
Almost all the rest are expected to become a new charitable trust overseen by his daughter Suzy and sons Howard and Peter.
Abel will face challenges including how to help Berkshire grow meaningfully without overtaking, whether to pay dividends and how to deploy cash.
Howard Buffett, 70, is expected to eventually replace his father as non-executive chairman of Berkshire to help maintain the company's culture.
(Reported by Jonathan Stempel in Omaha, Nebraska; other reports by Suzanne McGee and Carolina Mandl; Editors by Megan Davies, Diane Craft and Andrea Ricci)