In a surprising conclusion to Berkshire Hathaway’s nearly five-hour-long annual shareholder Q&A in Omaha on Saturday, legendary investor Warren Buffett revealed his decision to step down as CEO by the end of the year. This move ends a six-decade tenure that shaped Buffett into one of the most revered investors in history.
“I think the time has arrived where Greg (Abel) should become the chief executive officer of the company at year end,” said the 94-year-old Warren Buffett.
The announcement came without prior questions, and only two board members—Buffett’s children, Howard and Susie—were notified beforehand. Even Greg Abel, sitting beside Buffett during the meeting, was unaware of the decision until it was publicly declared.
Buffett intends to formally propose Abel’s appointment to the board on Sunday. Abel, who currently serves as vice chairman overseeing Berkshire’s non-insurance operations, returned alone to the stage after an hour to lead the meeting's official proceedings.
“I just want to say I couldn't be more humbled and honored to be part of Berkshire as we go forward,” said Abel, visibly moved.
Long considered the heir apparent, Abel will now manage all aspects of Berkshire Hathaway — from its insurance divisions to its massive investment strategies — duties that have historically been Buffett’s domain.
Despite his retirement, Buffett reassured investors of his faith in the company.
“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually.”
“The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine.”
The crowd in Omaha responded with a standing ovation.
Under Buffett’s stewardship, Berkshire Hathaway delivered a compounded annual return of 19.9%, nearly doubling the S&P 500's 10.4% during the same span. His investments could move markets globally, highlighting his monumental influence.
“This was probably a very tough decision for him, but better to leave on your own terms,” said CFRA analyst Cathy Seifert.
“I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire.”
While Abel may not command Buffett’s celebrity status, his sharp business instincts and methodical approach have earned respect internally.
“The question is will he allocate capital as dynamically as Warren? And the answer is no. But I think he'll do a fine job with the support of the others,” said Omar Malik of Hosking Partners.
However, his limited personal stake in Berkshire may pose a challenge.
“I think the challenge he's going to have is if anyone is going to give him Buffett or [Charlie] Munger's pass card? Not a chance in God's name,” commented Cole Smead of Smead Capital Management.
Smead also pointed out signs of Buffett’s declining sharpness this year, referencing a math mistake and moments of imprecise responses during the session.
“He wasn’t as sharp as in past years,” said Smead.
“I didn’t think he would retire while his mind is still working so well, nor did I think it'd happen at the annual meeting,” said Steven Check of Check Capital Management.
“But overall I’m very happy for him.”
Earlier during the session, Buffett criticized former President Donald Trump’s stance on international trade, calling out the dangers of using tariffs as political weapons.
“Trade should not be a weapon,” said Buffett.
“There’s no question that trade can be an act of war.”
He argued that such policies had alienated allies and worsened global instability.
“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.”
Berkshire is currently holding a record $347.7 billion in cash, as Buffett waits for market opportunities.
“This has not been a dramatic bear market or anything of the sort,” he noted, comparing it to the Great Depression.
Buffett also mentioned that no stock buybacks had occurred this year as the current prices “don’t seem to be a bargain.”
Investor Chris Bloomstran of Semper Augustus Investments Group echoed optimism:
“Berkshire needs a crisis. I mean Berkshire thrives in crisis.”
The 2025 Berkshire Hathaway annual meeting drew its signature crowd of 40,000, including high-profile attendees like Hillary Rodham Clinton. Loyal shareholder Devan Bisher, 72, reflected:
“It’s been a good train to ride,” he said.
“And I’m going to stay with it.”