Warren Buffett credits age as primary motivation for resigning as Berkshire Hathaway CEO

Warren Buffett credits age as primary motivation for resigning as Berkshire Hathaway CEO

Warren Buffett, arguably the most powerful man in global finance, will retire as chief executive officer of Berkshire Hathaway in December 2025, ending a streak that started in 1965. The billionaire, who is 94 years old, made the announcement at the company's annual shareholders meeting, attributing the decision to the natural consequence of ageing instead of a particular moment or event that prompted him to make the decision. In an unusual interview with The Wall Street Journal, Buffett looked back and said that although there was "no magic moment," his own self-awareness of slowing down came eventually to be unmistakable.

Buffett explained how he didn't really start to feel old until after his 90th birthday. From having trouble maintaining his balance to briefly forgetting names, the adjustments came slowly but surely. Although his health is still quite robust and his decision-making skill unscathed, he noted that the rate at which he could work no longer kept pace with that of his handpicked successor. The disparity, he added, "became more and more dramatic."

Greg Abel goes from utility manager to conglomerate CEO

Greg Abel, 62, will take the CEO role after more than two decades at Berkshire, joining the company through its 1999 acquisition of MidAmerican Energy. Abel built up Berkshire's energy operations over the years and won Buffett's confidence through both management and deal-making abilities. Abel was appointed vice chairman in 2018 to run all noninsurance businesses, and by 2021 was seen by Buffett as the man to succeed him.

Buffett lauded Abel's efficiency, referring to his work ethic and operations management as "unfairly good." Drawing a parallel with a 10-hour day for each of them, Buffett said Abel just got more accomplished—assisting people, replacing managers when necessary, and propelling results. "Really great talent is rare," Buffett stated. "The more years Berkshire gets out of Greg, the better."

A new chapter opens, but Buffett stays close

Even though he has resigned as CEO, Buffett will remain chairman of Berkshire Hathaway's board of directors and hasn't announced a retirement date for that position. He also insisted that his greatest asset—staying calm and logical during financial crises—wasn't diminished by age. "I don't get fearful when things go down in price," he explained, adding that this temperament, Abel shares, would continue to inform Berkshire's investment policy.

Buffett, who took a dying textile mill and turned it into a multinational conglomerate with more than 400,000 workers and major stakes in Apple, American Express, and Geico, maintains he is not retiring from work. "I'm in the office and I get to work with people I love," he said. "I'm not going to stay home and watch soap operas."

What's in store for Berkshire Hathaway

The news of succession brings an end to years of rumours about when and how Buffett would retire. With Abel assuming the reins at a time when Berkshire is cash-rich and ready for its next giant deal, the company embarks on a new era. Buffett may be retiring, but his shadow—and presence—will still be firmly entrenched.