Warren Buffett to Step Down After Six Decades at Berkshire Hathaway

Buffett’s departure has been anticipated for years, and Saturday’s confirmation formalized what had long been signaled. His designated successor, Greg Abel, currently vice chairman of Berkshire Hathaway’s non-insurance businesses, will assume the role of CEO starting January 1, 2026.

Buffett’s stewardship of Berkshire Hathaway began in 1965 when he took control of what was then a struggling textile manufacturer. Over the ensuing six decades, he transformed the company into a multinational conglomerate with a market capitalization exceeding $1.16 trillion as of May 2025.

Under Buffett’s leadership, Berkshire Hathaway became known for its prudent capital allocation, famously long investment horizons, and massive stock portfolio, which includes significant holdings in Apple, Coca-Cola, Bank of America, and American Express. The company owns or controls more than 60 subsidiaries, including BNSF Railway, Geico, Dairy Queen, and precision parts manufacturer Precision Castparts.

Its Class A shares have become one of the most expensive publicly traded stocks in the world, recently hitting an all-time high of $809,350 per share.

Buffett’s investment philosophy, grounded in value investing and famously shaped by mentor Benjamin Graham, has influenced generations of investors. Yet even as he steps away from day-to-day operations, Buffett confirmed he will retain the role of chairman and maintain oversight of the company's culture and long-term vision.

Greg Abel, 62, hails from Edmonton, Alberta, and rose through the ranks of Berkshire’s energy business. He began his career at PricewaterhouseCoopers before joining CalEnergy in 1992, which later became part of MidAmerican Energy Holdings and eventually Berkshire Hathaway Energy (BHE). Abel served as CEO of BHE before being appointed vice chairman of Berkshire Hathaway in 2018.

He has earned Buffett’s trust over more than two decades of consistent operational performance. Quiet and reserved, Abel has been praised for his competence, integrity, and deep familiarity with the operational side of Berkshire’s sprawling businesses.

In 2021, Buffett confirmed publicly for the first time that Abel would take over if anything were to happen to him, a statement that has now come full circle.

Abel recently sold his stake in Berkshire Hathaway Energy for $870 million, converting a portion into Class A shares, further aligning his financial interests with shareholders. Despite his wealth, he reportedly continues to live a modest lifestyle in Des Moines, Iowa.

While Abel’s leadership skills are undisputed within the Berkshire inner circle, questions remain about how he will handle the company’s mammoth investment portfolio, currently worth over $300 billion. Buffett, alongside partner Charlie Munger, who passed away in late 2023, personally oversaw the majority of investment decisions.

Investment managers Todd Combs and Ted Weschler are expected to maintain and possibly expand their roles in managing the equity portfolio. However, without Buffett’s famous instincts, analysts speculate the firm's investment approach could grow more cautious or diversified under new leadership.

Another concern is succession planning beyond Abel himself, especially as Berkshire is known for its lean corporate staff and decentralized structure. Whether that model will persist or evolve remains to be seen.

The announcement at this year’s shareholder meeting carried emotional weight, as many longtime followers realized they were witnessing the final chapter of Buffett’s unparalleled reign. Crowds erupted in standing ovation multiple times throughout the session, and some attendees openly wept as Buffett delivered remarks reflecting on his career and the future of the firm.

Berkshire shares were little changed in early Monday trading, signaling market confidence in the transition and Abel’s leadership.

As the financial world turns a page, the leadership handoff from Warren Buffett to Greg Abel represents more than a change in personnel, it symbolizes the transition of a business empire from one of the most storied figures in capitalism to a next-generation steward.

For Buffett, the legacy is firmly established: a $10,000 investment in Berkshire Hathaway stock in 1965 would be worth over $300 million today. And for Abel, the challenge now is to preserve that legacy while steering Berkshire into a new era marked by digital disruption, ESG scrutiny, and global market uncertainty.