The end of an era was announced in Omaha on Saturday when Warren Buffett said he would soon ask the Berkshire Hathaway board of directors for Greg Abel to replace him as CEO at the end of the year.
While Buffett is 94 years old and Aub was appointed as successor CEO in 2021, he nevertheless surprised the thousands of admiring shareholders gathered for this year’s annual meeting to hear the legend of investment on the future of the company again.
“Tomorrow, we are organizing a meeting of the Berkshire board of directors, and we have 11 administrators. Two of the directors, who are my children, Howie and Susie, I know what I am going to talk there. The rest of them will come like a new one, but I think that the time has happened in the last minutes of the meeting.
In 1965, Buffett bought what was a textile mill in New England faulty, and more than six decades transformed the company into a unique conglomerate with companies ranging from geico insurance to BNSF. Buffett put his reins on a high note when Berkshire’s actions have just achieved a new peak, giving the conglomerate a market capitalization of almost 1.2 billion of dollars.
Omaha’s Oracle “said that he would” drag “to help, but the last word on business operations and the deployment of capital would be with Abel, 62, currently vice-president of non-assurance operations for Berkshire.
Warren Buffett and Greg Abel are not going on the annual meeting of the shareholders of Berkshire Hathaway in Omaha, Nebraska on May 3, 2025.
David A. Grogen | CNBC
“I could be useful, I believe, in some respects, if we meet periods of great opportunities or anything,” he added.
Buffett, which has more than $ 160 billion in Berkshire as the largest shareholder, said it would not sell a single action of action after passing this new phase.
“I would add that, the decision to keep each part is an economic decision because I think that the prospects of Berkshire will be better under the direction of Greg than mine,” said Buffett, who used a rod to walk in the meeting, but answered questions for four hours with surprising energy and clarity for his age.
Buffett sang Abel’s praises in front of some 40,000 shareholders on Saturday, saying that his more practical management style works better for the 60 Berkshire subsidiaries.
“It works much better with Greg than with me because, you know, I didn’t want to work as hard as it works,” said Buffett. “I could get away with it because we have a fundamentally good business, very good deals.”
The Canadian executive, born in Edmonton, Alberta, has a 25 -year term in Berkshire to his credit. Abel joined Berkshire in 2000 when the conglomerate bought Midamerican Energy, where he finally became the CEO in 2008. Before that, Abel worked in Calenergy where he transformed the small geothermal company into a diversified energy company.
Regarding capital allowance, Abel said that he would inherit the style of value investment of Buffett patients and that he is ready to deploy a monstrous fortress of $ 347 billion in Berkshire each time a good opportunity arises.
“It is really the investment philosophy and how Warren and the team have allocated capital in the past 60 years,” said Abel. “Really, it will not change. And this is the approach that we will adopt as you go.”
The new role of buffett?
Buffett and Abel said to CNBC Becky fast after the shareholder meeting whose pair would discuss at the meeting of the Sunday board of directors what will be officially the role of buffett next year. Buffett is currently president of the conglomerate.
“I think they will be unanimously in favor,” said Buffett about the CEO’s decision awaiting the board of directors.
Warren Buffett speaks during the annual meeting of shareholders of Berkshire Hathaway in Omaha, Nebraska, May 3, 2025.
CNBC
It is therefore not clear if Abel will also assume the role of president. Buffet said to the Wall Street Journal Earlier this year, his son Howie Buffett would become non -executive president after his death to preserve the culture of the business. It is not clear if this decision will have an impact on this decision.
“It surprises me, but it impresses me,” said Ron Olson, director of the Berkshire board of directors, after the shareholders’ meeting on Saturday. “I am very impatient to see Warren becoming the Charlie Munger of Greg Abel.”
After the announcement that Abel did not even know how to arrive, the meeting ended with a standing ovation for Buffett.
The crowd reacts during the annual meeting of shareholders of Berkshire Hathaway in Omaha, Nebraska, on May 3, 2025.
CNBC
– With Lisa Kilai Han and Fred Imbert report
