Passing the Torch: Warren Buffett Names Greg Abel as Next Berkshire Hathaway CEO

In a surprising turn of events at Berkshire Hathaway’s annual shareholder meeting in Omaha, Warren Buffett announced his intention to step down as CEO by the end of the year. Despite being 94 and having already named Greg Abel as his successor back in 2021, the news still took many by surprise, as they had gathered to hear Buffett's ever-insightful views on the company's future.

During the closing moments of the meeting, Buffett shared that only two board members—his children Howie and Susie—had been informed in advance. The remaining directors would hear the official proposal at an upcoming board meeting. Buffett expressed that now was the right time for Abel to assume the role of chief executive officer and lead Berkshire Hathaway into the future.

Buffett’s storied tenure began in 1965 with the purchase of a struggling New England textile company, which he methodically turned into a $1.2 trillion conglomerate. From insurance giant Geico to BNSF Railway and countless other holdings, Buffett built a diversified empire and is stepping down at a moment when the company’s stock is at an all-time high.

Though he’s relinquishing the top job, Buffett reassured shareholders he will remain involved in a supporting role. He emphasized that Greg Abel, who currently oversees the non-insurance businesses, will have full authority over company operations and capital allocation. “I believe I can still be helpful during significant moments or major opportunities,” Buffett added.

Notably, Buffett confirmed he would not sell a single share of his Berkshire holdings, which are valued at over $160 billion. He cited confidence in Abel’s leadership, stating that Berkshire’s future is likely to be even brighter under Abel’s stewardship. His decision to hold onto his shares was entirely financial, not sentimental.

Buffett praised Abel’s hands-on leadership style, contrasting it with his own more hands-off approach. He acknowledged that Berkshire’s numerous subsidiaries are running more efficiently under Abel’s guidance. “Greg works harder than I ever did,” Buffett admitted, “and it’s showing in the performance of the businesses.”

Greg Abel, a Canadian native from Edmonton, Alberta, has been with Berkshire for 25 years. He joined when Berkshire acquired MidAmerican Energy in 2000 and rose to CEO of the energy company by 2008. Before that, Abel successfully expanded CalEnergy from a small geothermal company into a broader energy player, showcasing his ability to scale and lead.

On the topic of investments, Abel assured shareholders that Berkshire's conservative and long-term investment strategy would remain unchanged. He echoed Buffett’s philosophy of patient capital deployment and affirmed that the company’s formidable $347 billion in cash would be used wisely whenever strong opportunities arise. “The investment approach won’t shift—it’s what has worked for 60 years, and it will continue guiding us forward,” Abel said.