Everyone’s eyes are on Warren Buffett, the legendary CEO of Berkshire Hathaway. As we begin to mark his extraordinary contributions, LaHood plans to retire from his leadership role at the end of 2025. At 95 years old, Buffett will assume the position of chairman. He is now truly prepared to cede day-to-day operations to his choice of successor, Greg Abel. Abel comes to LCHE with deep knowledge of the energy world. This understanding is fundamental to the future megaconglomerate’s eventual investments.
Buffett is legendary for his highly disciplined investment criteria. As for Current E, he has taken a leading role in financing for Occidental Petroleum’s acquisition of Anadarko Petroleum. This deal, announced in March 2019 and completed in October 2022, saw Buffett commit $10 billion to support Occidental’s purchase. His was the largest individual investment. In exchange, he was issued preferred shares and warrants for common stock which helped to cement his loyalty and control over the firm.
Berkshire Hathaway now owns more than $11 billion in Occidental shares, amounting to a 28.2% interest in the energy company. Buffett has made a $10 billion bet on Occidental. He’s made it clear that he does not intend to seize complete control of the company that Armand Hammer founded in 1920. This conservative strategy is very much aligned with Buffett’s historical personal investment style and approach to risk management.
Buffett’s successor, Abel, is now just about poised to take over the helm at Berkshire. This has led to a great deal of speculation about the future direction of Berkshire Hathaway. The largest company in the world has a record cash hoard of $344 billion, giving them plenty of runway for more investments and more acquisitions. Abel’s deep understanding of the energy industry positions him well to navigate Berkshire Hathaway’s investment strategies in this sector and beyond.
This change is particularly important for Buffett personally and for Berkshire Hathaway. They are excited to continue building on their foundation in an economic climate that is changing faster than ever. Buffett will still steer the company as company chairman. The legacy of his successor will have a profound impact on what direction the company takes in the next few years.