OMAHA, Neb. (Diya TV) — Billionaire investor Warren Buffett, the world’s greatest investor of the past century, on Saturday said he will retire as CEO of Berkshire Hathaway in December 2025. That will end a remarkable 60 years in power that have transformed the Omaha company into an industry giant.
After a five-hour question-and-answer session at Berkshire’s shareholder meeting on Saturday, 94-year-old Buffett surprised everyone at the meeting with the news. He announced that he would recommend Vice Chairman Greg Abel as his successor when the board meets on Sunday.
“I think the moment has come for Greg to be company chief at the beginning of the year,” Buffett said to The Associated Press.
Buffett’s sudden revelation elicited a standing ovation from the crowd inside Omaha’s CHI Health Center, where he has long ruled the company’s legendary annual meeting, commonly referred to as the “Woodstock for Capitalists.” Abel, who is in charge of all of Berkshire’s noninsurance businesses, seemed shocked by the surprise but proceeded to conduct the formal business meeting.
“Of course, we are extremely grateful and blessed to be with Berkshire as we go forward,” Abel said to the shareholders.
Buffett stepping down is a tremendous shift in American business. During his reign, Berkshire returned 19.9% annually, nearly twice the S&P 500’s 10.4% return over the same period. Buffett’s fame also increased, with individuals paying such close attention to his investment decisions that markets would shift as a result of them.
Even though he retired, Buffett promised to keep his share in Berkshire, showing he believes in the company’s future with Abel.
“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away one day,” Buffett said. “The reason to hold every share is an economic reason because I believe that the prospects of Berkshire will be better in the hands of Greg than in mine.”
Although long trained to succeed Buffett, Abel wasn’t going to take over until Buffett passed away. Abel will now have full power, such as operating Berkshire’s insurance businesses and making capital decisions, two that Buffett has performed himself. Vice Chairman Ajit Jain will still help out with insurance.
Some of the investors still wonder whether Abel can invest like Buffett. Omar Malik of Hosking Partners said to AP, “The question is will he allocate capital as dynamically as Warren? And the answer is no.” But he continued, “But I think he’ll do a fine job with the support of the others.”
Buffett’s investment record is founded on his “castle and moat” strategy — a metaphor for businesses with durable competitive moats. Microsoft co-founder and close friend Bill Gates spelled out in a Harvard Business Review essay how Buffett estimates a business’s intrinsic value based on long-term fundamentals, including consistent earnings, solid cash generation, and minimal debt.
“Warren likes to tell the story that a good company is like a castle. You have to ask yourself each day: Is the administration expanding the moat?” Gates wrote.
Buffett’s investment approach is one of discipline and patience. “You should invest in a business that even a fool can run, because someday a fool will,” he famously wisecracked.
On Saturday, Buffett spoke about global politics. Buffett warned that the tariff strategy of former President Donald Trump may be an issue for the world. “It’s a big mistake in my opinion when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” he said.
Despite continued market uncertainty and Berkshire’s $347.7 billion cash hoard, Buffett indicated there are not many investments that are appropriate today. “This has not been a big bear market,” he said.
With Buffett retiring, the time was right, said investors like Smead Capital Management’s Cole Smead. “He wasn’t as sharp as in previous years,” Smead said to AP, highlighting errors at the meeting. The majority thanked Buffett for his years of leadership. “It’s been a good train to ride,” said long-time shareholder Devan Bisher, 72. “And I’m going to stay with it.”.
Buffett retires with a net worth of about $169 billion, according to Bloomberg. He leaves behind a legacy that transformed the world of investing.
