Warren Buffett has finally revealed who will take the reins of Berkshire Hathaway after him. During the company’s annual meeting on Saturday, the 94-year-old billionaire announced his plan to retire by the end of 2025 and recommended Greg Abel as the next CEO of the $865 billion conglomerate.
The announcement came during the final moments of a five-hour Q&A session, with no room for further discussion. Buffett stated that only his children, Howard and Susie, both of whom are board members, were aware of the decision beforehand. Even Greg Abel, seated right next to Buffett at the time, was caught off guard.
“I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,” Buffett told shareholders.
Who is Greg Abel?
Greg Abel is a 62-year-old executive who has worked at Berkshire Hathaway for over 25 years. Currently serving as Vice Chairman, he is expected to maintain the company’s long-term investment philosophy and its policy of not paying dividends to shareholders.
Abel was born on June 1, 1962, in Edmonton, Alberta, Canada. He came from humble beginnings, working various odd jobs like cleaning bottles and servicing fire extinguishers. He graduated from the University of Alberta in 1984 and later worked at PricewaterhouseCoopers and CalEnergy.
He joined MidAmerican Energy in 1992, which Berkshire Hathaway acquired in 1999. Abel became CEO of MidAmerican in 2008 and currently oversees all non-insurance businesses at Berkshire, including BNSF Railway, Berkshire Hathaway Energy, and various industrial and retail companies.
Why Buffett Chose Greg Abel
Back in 2021, Abel was named as the top choice to eventually replace Buffett, but the timing was uncertain. Now that Buffett has officially announced his retirement, Abel is positioned to lead the entire company.
Buffett’s confidence in Abel was clear. While Abel has never overseen Berkshire’s insurance operations or made investment decisions in the past, those responsibilities will now fall under his role. Vice Chairman Ajit Jain will continue supporting insurance operations.
According to investors and analysts, Abel is well-respected for his business acumen, though his investment skills remain largely untested. Nonetheless, Buffett’s endorsement carries weight, and his decision to keep his financial stake in Berkshire post-retirement signals strong faith in Abel’s leadership.
The Challenges Ahead for Greg Abel
Greg Abel is stepping into big shoes. Matching Buffett’s historic investment record is no small feat. Additionally, unlike Buffett, who owns a significant portion of Berkshire Hathaway, Abel will operate with a much smaller ownership stake, which could affect his decision-making freedom.
Still, Abel’s deep understanding of the company’s operations and steady leadership style have earned him the trust of the board and shareholders. As Berkshire Hathaway moves into a new chapter, all eyes will be on Greg Abel to continue the legacy of one of the most successful companies in history.
