In a significant announcement for the global investment community, Warren Buffett has confirmed his plans to step down as the Chief Executive Officer of Berkshire Hathaway. The 95-year-old investing legend will officially relinquish his role at the end of 2025, marking the end of an era for the multinational conglomerate.
A Carefully Planned Leadership Transition
The transition of power has been carefully orchestrated. Greg Abel, who currently oversees Berkshire's non-insurance operations, is set to assume the chief executive position in January. Buffett expressed strong confidence in his successor, stating in his annual Thanksgiving letter to shareholders that his children and the entire Berkshire board are "100 percent behind Greg."
Buffett revealed a key part of his exit strategy involves holding onto his substantial holdings of Berkshire "A" shares. He plans to maintain a "significant amount" of his stock until the company's vast investor base develops a solid comfort level with the new leadership. "That level of confidence shouldn't take long," the billionaire investor optimistically noted.
Buffett's Enduring Influence and Legacy
Despite stepping back from day-to-day management, Buffett's influence will remain deeply felt through his share ownership. He is, by far, Berkshire's largest shareholder, controlling approximately 30 percent of the total voting power. This is due to the structure of Berkshire's shares, where a single "A" share carries 10,000 times the voting rights of a "B" share.
The news of his retirement, first announced in May 2025, was met with dismay by many of his loyal followers. Known as the "Oracle of Omaha," Buffett built his reputation on a philosophy of long-term value investing, shunning get-rich-quick schemes in favour of buying and holding quality assets. His folksy demeanour and ability to explain complex financial concepts in simple terms made him a beloved figure far beyond Wall Street.
Embracing a New Chapter
In his personal reflections, Buffett acknowledged the realities of aging. While he generally feels good, he wrote, "I move slowly and read with increasing difficulty." He philosophically added, "I was late in becoming old –- its onset materially varies -- but once it appears, it is not to be denied."
This shift also means a change in his communication with shareholders. Buffett will stop writing Berkshire's famed annual report, a document eagerly devoured by investors worldwide for decades. However, he committed to continuing his tradition of releasing an annual Thanksgiving message, ensuring he remains connected to the investment community he helped build.
The departure of Warren Buffett from the CEO role at Berkshire Hathaway represents a monumental shift in the corporate landscape. All eyes will now be on Greg Abel as he prepares to steer one of the world's largest and most respected companies into its next chapter.
