Warren Buffett stunned thousands of shareholders at Berkshire Hathaway’s shareholder meeting by proclaiming his retirement before year-end. At 94 years old, the billionaire announced that Vice Chairman Greg Abel would take over as CEO after running the firm for more than six decades. The surprise news came near the end of a five-hour question-and-answer session, with no questions or advance board consideration—aside from children Howard and Susie.
Greg Abel, oblivious to the decision, sat next to Warren Buffett when the bombshell fell. The all-time great investor’s departure puts an end to a chapter of unparalleled returns and marks the start of a new, uncertain epoch under Abel.
BREAKING:
Warren Buffett to Step Down as Berkshire Hathaway CEO $BRK.B
Names Greg Abel as successor pic.twitter.com/rhahQcp6kD
— Matt Allen (@investmattallen) May 3, 2025
Greg Abel Rises to Top Job, Can He Replace Warren?
Greg Abel has been Buffett’s chosen successor for a long time. He already operates all noninsurance companies within Berkshire Hathaway. Now, he will also manage insurance and capital deployment. But there are doubts. Abel does not possess Buffett‘s charm, strong investment instincts, and 30% stock ownership.
Nevertheless, Abel was humble following the announcement, stating, “I couldn’t be more honored.” Buffett fully supported him, vowing not to sell any shares. “I think the prospects of Berkshire will be better under Greg’s management than mine,” he added.
Surprise Timing Sparks Emotional Reaction
The timing was unexpected for shareholders. Most expected Buffett to die in office. Some saw warning signs of slowing down. He lost his train of thought while answering and even made simple arithmetic mistakes. Investors presented him with a lengthy standing ovation when he was leaving.
Steven Check of Check Capital quoted, “I didn’t think he would retire while his mind is still working so well, nor at the annual meeting.”
Buffett Slams Trump Tariffs Before Stepping Down
Earlier in the day, Buffett cautioned that Donald Trump’s tariffs pose a threat to global stability. “Trade should not be a weapon,” he said, labeling the policy “a big mistake.” He emphasized that prosperity around the globe makes the world safer, not more dangerous.
Buffett downplayed Trump’s new tariffs’ effect on market volatility. He claimed that it’s like the Great Depression. Nevertheless, Berkshire hasn’t repurchased shares this year. Buffett also explained that the company is sitting with $347.7 billion of cash and awaiting improved terms.
Legacy, Loyalty, and Future Uncertainty
Buffett created a legacy with a 19.9% per-year growth rate, almost doubling the return of the S&P 500. His faithful investors tended to follow his every step. Some, such as Omar Malik of Hosking Partners, think Abel will be okay. Others, such as Cole Smead, are wary.
As Abel takes Berkshire into the future, investors ask: Can he equal the investment instincts of the “Oracle of Omaha”? The answer might define Berkshire’s next decade.
