From modest Omaha roots to a US$1.16 trillion empire, Buffett’s final move sets the stage for a new era
Warren Buffett will retire as chief executive of Berkshire Hathaway at the end of 2025, handing leadership to vice-chair Greg Abel, according to BBC.
The announcement was made at the company’s annual general meeting in Omaha, following a five-hour Q&A session.
During the event, Buffett, 94, told nearly 40,000 attendees that he believed the time had come for Greg to become the chief executive of the company by year end.
Abel, seated next to Buffett, was unaware of the plan, and only Buffett’s two children, Howard and Susie, had been informed beforehand, as reported by The Guardian.
As per CNBC, Abel has been vice-chair of Non-Insurance Operations since 2018, overseeing segments such as utilities, railroads, and retail.
He joined the firm after Berkshire acquired MidAmerican Energy in 1999, where he was an executive. Abel, who was born in Alberta, Canada, and studied at the University of Alberta, has been regarded as Buffett’s heir apparent since 2021.
Buffett joked after receiving a standing ovation. He said the enthusiasm shown by that response could be interpreted in two ways.
Buffett stated, “I have no intention – zero – of selling one share of Berkshire Hathaway. I will give it away eventually,” according to The Guardian.
He added that the decision to retain every share was an economic one, because he expects Berkshire’s prospects to improve under Abel’s leadership.
As reported by Reuters, Apple CEO Tim Cook responded to the announcement by writing on X: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom.”
There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him. And there’s no question that Warren is leaving Berkshire in great hands with Greg. pic.twitter.com/7p5zXtq5hP
— Tim Cook (@tim_cook) May 3, 2025
JPMorgan Chase CEO Jamie Dimon added that Buffett “represented everything that is good about American capitalism and America itself.”
Buffett transformed Berkshire from a struggling textile maker into a US$1.16tn conglomerate with holdings in Geico, Dairy Queen, Coca-Cola, Apple, and American Express, according to BBC.
He has led the firm since 1965, often alongside Charlie Munger, who died in 2023.
According to The Guardian, Berkshire shares have delivered a 19.9 percent annualised return since 1965, almost doubling the S&P 500’s 10.4 percent over the same period.
Despite ranking fourth globally in wealth — at US$154bn, according to Bloomberg — Buffett has lived in the same Omaha house for more than 65 years.
He plans to donate 99.5 percent of his wealth to a charitable trust overseen by his children, The Guardian reported.
The transition comes amid financial headwinds.
CNBC reported that Berkshire's operating earnings fell 14 percent in Q1 to US$9.64bn, with per-share earnings dropping to US$4.47 from US$5.20.
A 48.6 percent decline in insurance underwriting, including a US$1.1bn loss from Southern California wildfires, contributed significantly. The company also reported a US$713m foreign exchange loss, compared to a US$597m gain in the previous year.
Berkshire’s quarterly report, cited by CNBC, warned that US President Donald Trump’s tariffs and shifting trade policies had created a climate of uncertainty.
It stated that the pace of changes in these events had accelerated in 2025 and that considerable uncertainty remains.
Buffett echoed those concerns at the AGM, stating, “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” as quoted by The Guardian.
Buffett added, “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best.”
He has previously described himself as “playing in extra innings,” according to a 2023 letter quoted by BBC.
The first-quarter report also noted that Berkshire was a net seller of stocks for the 10th consecutive quarter and that its cash holdings grew to a record US$347bn, as per CNBC.
Despite the dip in earnings, Class A shares rose nearly 20 percent year-to-date, outperforming the broader S&P 500, which declined 3.3 percent.
In a related development, Reuters reported that Abel commented on wildfire prevention, stating, “Keeping the lights on was no longer a priority” in certain high-risk areas, and that it was about “protecting the general public and being sure the fire doesn’t spread further.”
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