- Warren Buffett announced at Berkshire Hathaway’s annual meeting that he will propose Greg Abel, 62, as CEO by year-end, surprising shareholders despite Abel’s 2021 successor designation.
- Buffett, who has led Berkshire since 1965, will remain involved to advise during key opportunities, while Abel, vice chairman of non-insurance operations, takes full control of operations and capital deployment.
- As Berkshire’s largest shareholder, Buffett plans to keep all his shares, citing better economic prospects under Abel’s leadership.
Warren Buffett, the 94-year-old investing icon who has led Berkshire Hathaway (BRK-A, BRK-B) since 1965, announced at the company’s annual meeting in Omaha on Saturday that he will propose to the board of 11 directors that Greg Abel, 62, replace him as CEO by year-end, marking a pivotal transition for the conglomerate. Abel, named successor in 2021 and currently vice chairman of non-insurance operations, will assume full responsibility for operations and capital deployment, though Buffett plans to remain involved to offer guidance during periods of significant opportunity. The decision, shared with only two directors—Buffett’s children, Howie and Susie—caught thousands of shareholders by surprise, despite Buffett’s age and Abel’s prior designation, as the legendary investor spoke with vigor for four hours at the meeting celebrating his 60-year tenure.
Buffett, Berkshire’s largest shareholder, emphasized his confidence in Abel’s leadership by committing to retain every share of the company, citing superior economic prospects under the incoming CEO. His assurance reflects Berkshire’s robust portfolio, spanning insurance, railroads, and consumer goods, which has thrived under his stewardship through disciplined capital allocation. While using a cane, Buffett’s mental acuity remained evident, reinforcing his enduring influence as he transitions to a less active role. The move underscores a strategic handoff to Abel, whose experience overseeing diverse non-insurance businesses positions him to navigate an evolving economic landscape. Shareholders, gathered to hear Buffett’s insights, now face a new era for Berkshire, with Abel tasked to uphold its legacy while capitalizing on opportunities in a complex global market, bolstered by Buffett’s continued presence and unwavering stake in the company’s future.
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