Warren Buffett has reassured Berkshire Hathaway shareholders about his upcoming departure as chief executive, strongly endorsing his designated successor, Greg Abel. Buffett promised to remain a major stockholder in the conglomerate. In a letter to Berkshire shareholders, potentially his last before stepping down at year-end, the 95-year-old Buffett stated that Abel has “more than met” his expectations since being identified as CEO material. Berkshire Hathaway is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. The company wholly owns GEICO, Duracell, Dairy Queen, and BNSF Railway.
Buffett emphasised his confidence in Abel’s capabilities, asserting that he would choose him above any other candidate to manage his and Berkshire shareholders’ savings. He will remain Berkshire’s chairman. Buffett also announced plans to accelerate his charitable donations to family foundations led by his children, Susie, Howard, and Peter. He clarified that this decision does not reflect any change in his outlook on Berkshire’s future prospects.
Referencing his long-time second-in-command, Charlie Munger, who passed away in 2023, Buffett expressed his intention to maintain a substantial number of Class A shares. This is to ensure that Berkshire shareholders develop the same level of comfort with Abel as they had with Munger and himself. The move underscores Buffett’s commitment to a stable and confident transition in leadership.
Buffett further donated over $US1.3 billion ($2 billion) worth of Berkshire stock, equivalent to 1800 Class A shares, to four family foundations managed by his children. Since 2006, he has donated more than half of his Berkshire shares. Despite this, he still retains approximately 14 per cent of the company’s stock, with his net worth estimated at $US149 billion as of Friday, according to Forbes magazine. Buffett has been at the helm of the Omaha, Nebraska-based conglomerate since 1965.
