Warren Buffett, long-serving CEO of Berkshire Hathaway, has announced that he will advise the board to appoint Greg Abel as his replacement. We hope to see this request from him come by the end of this year. This revelation came during the company’s annual meeting in Omaha, where it surprised thousands of shareholders who admire Buffett’s leadership. At 94 years old, Buffett has quite remarkably presided over Berkshire Hathaway for 60 years. Now, he announces an end of an era in leadership.
Greg Abel, 62, vice chairman of non-insurance operations, has long been viewed as a likely heir. Over in Omaha, Warren Buffett chose him in 2021 to be his successor. In his announcement, Buffett made a point to note that he is not stepping down as CEO. He will continue to have an important role within the company, especially during this transitional period. The ultimate control over all company decisions will pass to Abel, a historic moment in Berkshire Hathaway’s three-decade run as a corporate anomaly.
Buffett conceded that his kids had been understood the transition down the road. Tomorrow, as luck would have it, we’re having a board meeting of Berkshire, and we have all 11 directors.… my kids, Howie and Susie, are two of the directors. In fact, they probably know more about what I’ll be discussing there than I do. Few of them will have realized this would be coming in the first place. I think the time has finally arrived for Greg to do just that — take a more aggressive role as the CEO of the company by year’s end.
The upcoming discussions during the Sunday board meeting will focus on defining Buffett’s formal role within the organization moving forward. Without getting into what role Abel will play as chairman, it’s too soon to say, but Buffett said he has no doubt about the ability of his successor.
“I would add this, the decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine,” Buffett remarked, reinforcing his commitment to the company’s future even as he prepares for retirement.
Buffett’s end of an era announcement marks a defining moment for Berkshire Hathaway as it readies itself for leadership under Abel. Shareholders should be excited to receive further clarity on the transition at the next board meeting. This meeting will help clarify Abel’s new mandate and outline how Buffett will remain a crucial presence in the company he’s constructed over decades.