Warren E. Buffett was at the forefront of American capitalism for decades as the chief executive of Berkshire Hathaway and a conglomerate he incorporated into the $1.1 trillion colossus.
By the end of the year, he is preparing to abandon the role.
Buffett said at Berkshire's annual shareholders meeting on Saturday he plans to ask his board to approve his heir, Gregory Abel, as CEO by the end of the year.
Buffett, 94, told tens of thousands of Berkshire shareholders at a meeting in Omaha that Abel would have “the final word” about the company's business, how it will invest, and more.
But Buffett added that he “still wandering around and probably useful in a few cases.” He will remain the chairman of Berkshire, handing over the role to his son Howard Buffett after his death – and will remain the company's sole largest shareholder with a stake of around 14% worth around $164 billion.
Buffett said his plans were only known to two children, Howard and Susan Buffett, sitting on the company's board, but he was greeted by a one-minute standing ovation by Abel, 62, and seemed surprised by his boss' announcement. After the announcement, several board members attending the Berkshire meeting hugged each other.
Buffett looked after his health and led several hours of questions from investors on Saturday, but changes to this year's Annual Meeting (60th in Berkshire) reflect his age of progress. He used his wand. He first mentioned it in the company's annual letter in February, cutting shareholder questioning sessions several hours.
If the board approves the plan, it means the end of the era of one of the most successful companies in the history of modern capitalism and one of its most famous investors. By being a savvy stockpicker, Buffett accumulates Midas-like wealth, acquires companies and holds them for the long term.
Through his investment philosophy, he brought together conglomerates that run large insurance businesses, major railways and dozens of consumer companies, overseeing a vast equity portfolio.
Among Berkshire's most notable holdings are names that many consumers recognize. Auto insurance company GEICO, BNSF Railway, Berkshire Hathaway Energy, Dairy Queen, Sea candies, loom fruit, Paint company Benjamin Moore, Private jet company NetJet. Together, these companies helped Berkshire grow cash storages that are close to $348 billion above the McDonald's stock market valuation.
Berkshire's financial firepower has made Buffett one of the world's most influential businessmen, giving him a declaration on many topics, including politics and great weight. That includes his criticism of President Trump's trade policy, which Buffett targeted on Saturday.
“Trade should not be a weapon,” Buffett said at the annual meeting. “I don't think it's right, and I don't think it's clever.”
Buffett's comments on tariffs were far from his first foray into politics. His name, a Democratic supporter, was attached to the proposal by former President Barack Obama, who would have raised taxes on billionaires a few years ago. But Buffett didn't stand out for months, and even on Saturday he didn't mention Trump by name.
Buffett's resignation plan will complete one of the most viewed leadership transitions in corporate America. For years he faced questions about who could take over Berkshire, a unique, complicated business, and many executives have emerged as his successors.
However, in 2021, Buffett finally confirmed that Abel joined Berkshire Fold when the company bought its energy business in 1999. Since then, Canadian executives have increased their ranks and have transformed what is now called Berkshire Hathaway Energy into one of America's biggest electricity producers.
Abel is currently the vice-chairman of non-insurance Berkshire businesses. Surveillance of the conglomerate giant insurance business remains at Ajit Jain, a longtime Buffett Li. Buffett and other executives have publicly declared their belief that Abel can maintain Berkshire culture.
“Greg is ready,” longtime Berkshire director Ronald L. Olson has also stepped down, telling CNBC on Saturday after Buffett's announcement.
Olson added that he hopes Buffett will serve as a valuable soundboard for Abel, as did Charles T. Munger, Buffett's longtime business partner, who passed away in 2023.
Buffett and Munger entertained investors and others. This is the 60th year of Berkshire's annual meeting, in particular.
Berkshire's latest financial report card highlighted the complications Abel faces as CEO.
The company reported a sharp decline in revenue for the first quarter, with operating profit (a measure of Buffett's preference) down 14% from a year ago to $9.6 billion. Using commonly accepted accounting principles, Berkshire reported that its net profit had dropped nearly 64%, primarily due to paper investment losses.
However, while the market has become more volatile in response to Trump's flagellated approach to trade, Buffett has little concern about the impact of its volatility on Berkshire.
“It's really nothing,” he told shareholders, suggesting that getting on the market is part of stock investment.
The company reported that the “majority” of the companies reduced sales and revenue, particularly in the first three months of the year, in the underwriting revenues that suffered losses related to the California wildfires.
In a regulatory filing on Saturday, Berkshire warned that Trump's trade policy has created “severe uncertainty.” “We cannot currently predict potential impacts on our company, such as product costs changes, supply chain costs and efficiency, and customer demand for products and services.”
Berkshire's cash pile has grown to $347.7 billion. This reflects Buffett has not found a blockbuster investment opportunity that would help him put the company on the map. In the past, he has acknowledged that given Berkshire's size, it is now nearly impossible for Berkshire to find a transaction that can significantly boost its revenues.
During a questioning and answering session with shareholders at the annual meeting on Saturday, Buffett acknowledged that he stocks cash to prepare for potential purchase opportunities. He revealed that there could be a $10 billion investment, but refused to go into detail later.
Berkshire remains a net seller of stock, selling $4.688 billion worth of stock in the quarter, compared to a $3.18 billion purchase.
One thing Buffett didn't address directly on Saturday is what happens to Todd Combs and Ted Weschler, whom he hired to pick Berkshire stocks more than a decade ago. The two are widely expected to become Berkshire stockpickers after Buffett leaves, but Combs has also become GEICO's CEO.
Many well-known corporate and business leaders were on hand on Saturday, including Microsoft co-founder Bill Gates, Apple's Tim Cook (one of Berkshire's biggest stockholders) and billionaire investor William A. Ackman. Two first timers, Hillary Rodham Clinton and Priscilla Chan, wife of Metah CEO Mark Zuckerberg, were present.
Andrew Ross Sokin Reports of contributions.
