A New Chapter for Berkshire Hathaway: Greg Abel to Take the Helm from Warren Buffett

In a momentous announcement that marked the end of an era, Warren Buffett revealed at Berkshire Hathaway’s annual meeting in Omaha that he intends to step down as CEO by the end of the year. Buffett, 94, declared that he will recommend the company’s board appoint Greg Abel as his successor. Although Abel was officially named heir to the CEO role back in 2021, the news still caught many of the approximately 40,000 attendees off guard.

During the closing minutes of the event, Buffett disclosed his plan, noting that only two of the company’s 11 directors—his children, Howie and Susie—had prior knowledge of the announcement. He expressed confidence that the moment had come for Greg Abel to lead the company, signaling a significant leadership transition for the multinational conglomerate.

Buffett’s legacy began in 1965 with the purchase of a struggling textile company, which he transformed over six decades into a business empire spanning insurance, energy, railroads, and more. His decision to step back comes at a high point, as Berkshire Hathaway’s shares recently hit record highs, bringing the company’s market capitalization to nearly $1.2 trillion.

Although stepping down from day-to-day responsibilities, Buffett assured shareholders he would remain available for guidance, particularly during times of opportunity or uncertainty. However, Abel will be in full control of both company operations and capital management. At 62, Abel currently serves as vice chairman overseeing non-insurance operations.

Buffett emphasized that his decision to retain all his Berkshire shares is grounded in confidence, not sentiment. He openly stated that he believes the company’s prospects are even stronger under Abel’s leadership. Despite using a cane, Buffett fielded questions for over four hours, showcasing his enduring sharpness and enthusiasm.

Praising Abel’s energetic leadership, Buffett highlighted that Berkshire’s many subsidiaries are running more efficiently under Abel’s more engaged managerial style. “It’s working way better with Greg than with me,” Buffett said, candidly admitting that he had long avoided the intense work ethic Abel embraces. Abel’s hands-on approach has already brought noticeable benefits across the conglomerate.

Hailing from Edmonton, Alberta, Abel has been with Berkshire since 2000 when the firm acquired MidAmerican Energy, where he rose to CEO by 2008. His roots in the energy sector and long-standing alignment with Buffett’s value investing philosophy make him a natural successor. Abel has pledged to carry forward the same disciplined approach to capital allocation that Buffett has championed for decades, promising continuity even as the leadership baton changes hands.