Veteran investor and CEO of Berkshire Hathaway, Warren Buffett, announced on May 3, as a part of the company's AGM, that he would formally be suggesting to the board to formalise Greg Abel as the new CEO of Berkshire Hathaway by the end of the year.
"I think it's the time has arrived where Greg should become the chief executive officer of the company at year end. And I want to spring that on the directors, effectively, and give that as my recommendation," he said.
“I want to give them ( the board) time to think about it — to ask questions, consider the structure, and reflect on what it means,” Buffett added.
Buffett expressed confidence that the board would support the transition. “I expect that the 11 directors will vote unanimously in favour,” he said.
Buffett added that he would continue to be present in "some cases or the other" but the end decisions would be with Greg.
Abel, who currently oversees Berkshire’s non-insurance businesses, has long been considered Buffett’s heir apparent.
“Greg would have the final say on operations, capital deployment, acquisitions, whatever it might be,” Buffett said, adding that he would still be around and could conceivably be helpful in some situations.
Buffett added that Berkshire’s unique reputation could make his presence useful in moments of national or financial stress. “In times of government or market stress, we are seen as an asset rather than a liability. That’s hard to achieve, and I might still play a role in preserving that,” he said.
However, Buffett stressed that the leadership handover would be real and meaningful. “Greg would fully hold the reins,” he said. “The board might feel more comfortable approving large acquisitions knowing I’m still around, but Greg would be the CEO — period.”
Looking ahead, Buffett said the next board meeting would likely mark the moment of formal approval, after which “we’ll have something significant to announce to the world.”
Investors cheered on the "Oracle of Omaha" with a resounding 5-minute standing ovation. Buffett has been at the helm for over 60 years. Buffett made it clear that he has no plans to sell any of his Berkshire Hathaway shares, calling the decision a long-term economic judgment rooted in confidence in the company’s future leadership. “I have no intention. Zero. Of selling one share of Berkshire,” Buffett said.
Buffett tied his decision to retain his entire stake to the company’s transition of leadership and its long-term potential. “It’s an economic decision. I think the prospects for Berkshire will be better under Greg's management than mine," he said.
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