Unlock the publisher’s digest free
Roula Khalaf, editor -in -chief of the FT, selects her favorite stories in this weekly newsletter.
Warren Buffett, the most famous investor in the world, said that he was planning to withdraw from the head of his conglomerate Berkshire Hathaway, a financial mastodon he has built over the past six decades.
The 94 -year -old man – known as the “Oracle of Omaha” – said that he would propose that Greg Abel should take over as CEO of Berkshire at the end of this year.
“The time has come when Greg should become the head of the company’s management at the end of the year and I want to bring out the directors and get this recommendation,” he said.
Abel, 62, that Buffett had previously appointed his possible successor, is the operations of non-assurance vice-president of Berkshire. Buffett said he had not given it, or the other Berkshire administrators, no notice, making the announcement at the very end of a 60th historic annual meeting of shareholders in Omaha, Nebraska.
Berkshire is one of the largest conglomerates in the world, managing a portfolio of nearly 200 companies. Buffett took over it in 1965 when it was a manufacturer of medium -sized textiles.
Buffett said that on Sunday, he would summon a meeting with the Berkshire board of directors to answer questions about his decision. “Two of the directors who are my children know what I’m going to talk about. For others, it will come as a new one,” he added just before announcing his decision.
He added that he “would always drag and could be useful in a few cases” but that the coat should go completely to Abel.
The crowd of tens of thousands of shareholders who had descended on Omaha for the event broke out in applause following the announcement.
“It’s absolutely monumental,” said Christopher Rossbach, director of investments for the longtime shareholder of Berkshire, J Stern & Co, through tears leaving the arena on Saturday afternoon.
“Berkshire Hathaway is an incredible company and an incredible achievement. It represents everything that is best in American capitalism and entrepreneurship. ”
Buffett withdraws on a summit. Berkshire’s actions “A” – the class held by Buffett itself and many of its first investors – ended a record of $ 809,808.50 on Friday, a price that reflected not only its long -term investment success, but also the money pouring out of Berkshire operational activities.
The stock has increased by 20% since the start of the year, while the S&P 500 index slipped by 3%.
Buffett comforted shareholders that even if it no longer officially directed the conglomerate, he would keep his actions in Berkshire. “I have no intention – zero – to sell a part of Berkshire Hathaway. I will give it gradually. ”
Berkshire now earns a large part of his money in his vast insurance activity, which includes companies such as Geico, as well as myriad of other companies, from aerospace manufacturing to the railways to chocolators. Textile activity was closed in 1985.
Although it is one of the richest individuals in the country with a net value of around 168 billion dollars, according to Forbes, Buffett has maintained a folk aura, attracting shareholders each year in Omaha for a weekend of festivities. He still earns a nominal salary of $ 100,000, as he has been doing for over 40 years.
The death of his longtime friend and trading partner Charlie Munger in 2023 increased speculation on the moment when Buffett could resign. Saturday afternoon in Omaha, the answer finally arrived.
“This is the hook of news of the day,” said Buffett with a little laugh.
