Warren Buffett to Step Down as Berkshire Hathaway CEO, Ending an Investment Era
Warren Buffett, the 94-year-old investment legend, has announced his decision to step down as CEO of Berkshire Hathaway by the end of 2025. The announcement, made during the company’s annual shareholder meeting on May 3, 2025, marks a significant change for the $1.18 trillion conglomerate.
Buffett cited the natural effects of aging as the primary reason for his decision. He shared that he only began noticing age-related changes around 90, including balance issues, difficulty remembering names, and trouble reading small print. These factors led him to conclude it was time to hand over the reins.
The news caught many by surprise, including most board members and even Greg Abel, the chosen successor. Only Buffett’s children were aware of the decision beforehand. Abel, 62, will take over as CEO on January 1, 2026. He currently serves as vice chairman overseeing non-insurance operations and has been with the company since 1992.
Buffett praised Abel’s capabilities, noting the stark difference in their energy levels and productivity. He acknowledged that Abel’s ability to accomplish tasks in a 10-hour day far surpassed his own, making it clear that delaying the transition would be unfair.
Abel’s deep understanding of capital allocation and calm demeanor during market volatility were highlighted as key strengths. Buffett expressed confidence in Abel’s ability to lead the company, stating, “Greg understands capital allocation as well as I do.”
While stepping down as CEO, Buffett will remain chairman of the board and continue to be involved in the company’s affairs. He plans to assist in certain situations and will continue investing in Berkshire, including deploying capital when promising opportunities arise. Buffett also intends to gradually donate his shares to charitable causes.
The transition marks a historic moment for Berkshire Hathaway. Despite initial investor concerns, the clear succession plan and Buffett’s ongoing involvement provide stability. Abel will inherit a conglomerate with approximately $350 billion in cash reserves, positioning him to make significant capital allocation decisions as he leads the company into its next chapter.
With Greg Abel at the helm, Berkshire Hathaway is set to continue its legacy of disciplined investing and long-term value creation, extending well beyond Buffett’s tenure.
