A generational handover looms at the US$1tn conglomerate as Buffett prepares to step down after six decades at the helm
Warren Buffett has formally triggered the final step in Berkshire Hathaway’s long-anticipated succession plan, announcing he will ask the board to appoint Greg Abel as chief executive officer at the end of 2025. The transition, while expected for years, was delivered with little fanfare and some surprise during the final minutes of Berkshire’s annual shareholder meeting on Saturday in Omaha.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett told a packed stadium of roughly 40,000 shareholders, many of whom had travelled thousands of miles for the chance to hear the legendary investor speak in person.
Buffett added that the board—comprising 11 directors, two of whom are his children—had not yet been told. “The rest of them, this will come as news to,” he said, “but I’m going to talk to them about it tomorrow.”
The vote is expected to take place across Berkshire’s next two board meetings, with Buffett predicting “a unanimous decision” in favour of Abel.
The end of an era
Now 94, Buffett took control of Berkshire Hathaway in 1965 when it was still a floundering New England textile mill. Over the next six decades, he transformed it into one of the most unique and powerful conglomerates in financial history—owning outright businesses like Geico, BNSF Railway, and See’s Candies, while also holding enormous stakes in Apple, Coca-Cola, American Express, and Bank of America.
Buffett’s performance is virtually unmatched: Berkshire’s share price has risen at a compound rate of 19.9% annually since 1965, compared to 10.2% for the S&P 500 over the same period. A US$10,000 investment in Berkshire then would now be worth more than US$500 million.
Known for his plainspoken Midwestern charm, razor-sharp capital discipline, and long-term investing ethos, Buffett became something of a global folk hero—a capitalist philosopher king whose annual letters were studied like scripture by investors and CEOs alike.
Yet he built Berkshire on something more than financial savvy: a distinctive corporate culture of decentralisation, integrity, and autonomy. Subsidiary managers were entrusted to run their businesses with minimal interference; deals were struck with a handshake. It is this culture—not just Berkshire’s assets—that Abel has been entrusted to preserve.
Who is Greg Abel?
Abel, 62, was born in Edmonton, Canada, and studied commerce at the University of Alberta. He joined Berkshire Hathaway Energy (then MidAmerican Energy) in 1992, rising through the ranks to become CEO in 2008. In 2018, he was named vice-chair of Berkshire’s non-insurance operations—a move widely seen as confirmation he would one day succeed Buffett.
Abel is known for his low profile, operational competence, and deep understanding of Berkshire’s sprawling businesses. He oversees an industrial and utility empire that includes Dairy Queen, Precision Castparts, Pilot Flying J, and Berkshire Hathaway Energy. Those businesses collectively generate more than half the group’s operating income.
“He has so many of the fundamentals of Warren,” said Ron Olson, a Berkshire board member and long-time confidant. “Is he another Warren Buffett? No, there is no other Warren Buffett.”
Abel himself has rarely spoken publicly but addressed the crowd briefly on Saturday. “We will continue to make sure we’re sound in our investments,” he said, promising that Berkshire’s next generation would stick to the core tenets of conservatism and discipline. “That is part of the DNA of the company.”
Buffett not going far
Despite the title change, Buffett emphasised that he would not be disappearing. “I would still hang around and conceivably be useful in a few cases,” he said. “But the final word would be what Greg said in operations, in capital deployment, whatever it might be.”
Importantly, Buffett said he had made the decision to retain his entire personal stake in Berkshire. “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,” he said to resounding applause.
Buffett owns about 15% of Berkshire’s voting power through Class A shares, giving the endorsement practical weight as well as symbolic force.
A business built for the long haul
Abel will inherit not only Berkshire’s legacy, but also one of the largest cash piles in corporate history. At the end of March, the company held US$189bn in cash and equivalents—rising to US$347bn when short-term Treasury bills are included. That figure eclipses the entire market capitalisation of some major banks and industrial giants.
The cash stockpile ballooned in 2024, after Berkshire sold roughly US$134bn worth of stocks, including portions of its Apple and Bank of America holdings. Asked why they were selling more than they were buying, Buffett cited valuation and opportunity: “We like cash more than the things we’ve been seeing.”
Abel described the cash as a “strategic asset,” noting it gives the group resilience, bargaining power, and freedom from external financing. “It allows us to play offence when the time is right,” he said.
Still, some of Berkshire’s units face headwinds. Operating earnings for Q1 2025 fell 14% year-on-year to US$9.64bn, driven by weakness in insurance underwriting, lower freight volumes at BNSF Railway, and foreign exchange losses at its Japanese trading houses.
Despite that, Berkshire’s Class A shares closed Friday at a record high of US$809,350, up nearly 19% since January and outperforming the broader market.
Buffett on trade, tariffs, and global trust
Buffett also used the meeting to weigh in on US trade policy, expressing concern about rising protectionism and the erosion of international goodwill.
“I think it’s a big mistake to make trade a weapon,” he said, warning against complacency. “It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing… I don’t think it’s wise.”
The remarks come amid escalating tensions between Washington and Beijing, with the US recently imposing tariffs of up to 145% on Chinese electric vehicles and batteries. China responded with threats of its own, sending shockwaves through global supply chains. Berkshire’s latest report noted that these developments have introduced “considerable uncertainty” for its global operations.
“Greg will keep the culture”
For many shareholders, the heart of the matter is not Berkshire’s size or stock performance, but its ethos—what one director called “capitalism with a conscience.” Buffett’s aversion to fads, his disdain for debt, and his long-term horizon made Berkshire a haven in an era of short-termism.
Preserving that culture is the central challenge facing Abel. Berkshire’s decentralised structure—with over 80 businesses run semi-autonomously—depends on a rare kind of trust and judgement. Charlie Munger once remarked that Abel was “the only person we trust to keep the culture.”
Buffett echoed that view in Omaha. “He understands the values, and he’s lived them,” he said. “And he has no need to prove anything. That’s what I like.”
