Warren Buffett one of the world’s most famous investors recently made a big announcement. At 94 years old he said he will step down as CEO of Berkshire Hathaway by the end of 2025. After leading the company for 60 years Buffett is passing the baton to Greg Abel a trusted executive who has worked with him for over two decades. This news shared at Berkshire’s annual shareholder meeting in Omaha on May 3, 2025 surprised many. Alongside this Buffett shared his thoughts on global trade urging caution and optimism.
A Legendary Leader Steps Aside
Warren Buffett is a household name in the world of investing. Often called the “Oracle of Omaha” he turned Berkshire Hathaway from a struggling textile company into a massive conglomerate worth over $1 trillion. The company owns businesses like BNSF Railway, Dairy Queen, See’s Candies and even a huge stock portfolio with shares in companies like Apple. Buffett’s success comes from his smart longterm investment strategy and his ability to spot great businesses.
Now after 60 years at the helm Buffett feels it’s time to step back. He announced that Greg Abel the current Vice Chairman of Berkshire’s non insurance operations will take over as CEO by the end of 2025. Buffett will stay involved in an advisory role but said Abel will have the “final word” on decisions. This move marks the end of an era as Buffett has been the face of Berkshire for decades. His decision to step down shows his confidence in Abel to carry forward the companys legacy.
Who Is Greg Abel?
Greg Abel, 62 is a Canadian executive who has been with Berkshire Hathaway for over 20 years. He started at MidAmerican Energy a company Berkshire acquired in 1999 and rose to become its CEO in 2008. Later renamed Berkshire Hathaway Energy this division became one of the company’s key assets under Abel’s leadership. Since 2018 Abel has overseen all of Berkshire’s non insurance businesses, including railroads, retail and industrial firms. He was officially named Buffett’s successor in 2021 so this transition has been planned for years.
Abel is known for his sharp business sense and hands on management style. Unlike Buffett who is famous for his public speeches and witty shareholder letters, Abel keeps a lower profile. However Buffett has praised him often saying “Greg is ready.” Abel’s experience managing large businesses and his focus on longterm growth align with Berkshire’s culture of integrity and independence. Still taking over from a legend like Buffett is no easy task. Abel will need to manage a $347.7 billion cash pile and make smart investment choices to keep Berkshire growing.
Challenges Ahead for Abel
Leading Berkshire Hathaway is a huge responsibility. The company employs 400000 people and owns dozens of businesses across industries. Abel will need to maintain Berkshire’s unique culture which gives its subsidiaries a lot of freedom to operate independently. Investors are confident in Abel’s ability to run the company’s operations but some wonder how he will handle investing Berkshire’s massive cash reserves. Buffett has a legendary track record of picking winning stocks and Abel will face pressure to live up to that standard.
Another challenge is Abel’s background in energy. While he grew Berkshire Hathaway Energy into a major player, some critics like Sierra Club attorney Rose Monahan have pointed out that the division has relied heavily on coal plants which are harmful to the environment. As CEO Abel may face questions about how Berkshire will address sustainability and climate change. Despite these challenges Buffett’s full support gives Abel a strong foundation to build on.
Buffett’s Views on Global Trade
During the shareholder meeting, Buffett also spoke about global trade a topic that’s important for Berkshire’s businesses. He expressed cautious optimism about the U.S. economy and the role of trade in creating prosperity. However he warned against using tariffs—taxes on imported goods—as a “weapon.” Buffett believes that trade benefits everyone when countries work together. If other nations prosper he said the U.S. will too.
This message comes at a time when global trade is facing challenges. For example U.S. President-elect Donald Trump has talked about imposing high tariffs which could disrupt trade. Buffett’s comments suggest that Berkshire will stay careful in this environment avoiding risky moves. With a record $347.7 billion in cash the company is in a strong position to weather any economic storms. Abel will likely follow Buffett’s lead focusing on steady longterm growth rather than short term gains.
What’s Next for Berkshire Hathaway?
Buffett’s decision to step down has drawn praise from business leaders like Jamie Dimon of JPMorgan Chase who called him the “best of American capitalism” and Apple’s Tim Cook who admired his wisdom. Investors are optimistic about Berkshire’s future under Abel especially since Buffett plans to keep all his shares in the company. This shows his belief that Berkshire will do even better with Abel in charge.
For now the transition is still in motion. Buffett said only his two children Howard and Susie knew about his plan before the announcement. The Berkshire board will discuss Abel’s appointment soon and Buffett expects them to approve it unanimously. As 2025 ends all eyes will be on Abel to see how he steps into Buffett’s big shoes.
A New Chapter Begins
Warren Buffett’s announcement marks a turning point for Berkshire Hathaway. After 60 years of incredible leadership he’s handing over control to Greg Abel a capable executive with a proven track record. While Abel may not have Buffett’s fame he has the skills and trust to lead Berkshire forward. Buffett’s cautious optimism about global trade also reminds us of the importance of cooperation in a connected world. As Berkshire enters this new chapter its focus on smart investments and strong values will likely keep it thriving for years to come.