In a surprise announcement on May 3, Warren Buffett said he will step down at year's end as CEO of Berkshire Hathaway, ending a 60-year era where the billionaire investor has become an influential and iconic part of the U.S. economy.
Buffett made the announcement at the close of Berkshire Hathaway's annual shareholder meeting in Omaha, Nebraska.
Greg Abel, 62, who had been expected to be named CEO when Buffett retired, should take over at the end of the year, Buffett said. "I think the time has arrived where Greg should become the chief executive of the company at year end," said Buffett, who is 94.
Buffett said Abel and the other members of the Berkshire board – other than his children, Susan and Howard – hadn't been aware of his plans prior to the announcement and he was "springing" this on them.
"I would still hang around and could conceivably be useful in a few cases, but the final word would be what Greg said," said Buffett, who noted he has "zero" intention of selling any of his Berkshire stock.
The news was met with a standing ovation by the crowd at the CHI Health Center in Omaha.
Attendees laughed when Buffett said, "Greg doesn't know anything about this that I'm telling you right now."
Abel joined Berkshire Hathaway's board in 2018 as vice chairman of non-insurance operations, overseeing many of the conglomerate's more than 90 subsidiaries including the BNSF railroad and all of Berkshire's utilities, retail and manufacturing companies.
Buffett said the board of directors would be meeting May 4 and could discuss his recommendation, which could be made official later in the year.
Buffett: Helming Berkshire Hathaway 'an extraordinary luxury'
Buffett's decision to step down caps a remarkable 60-year run where he transformed Berkshire from a failing textile company into an enormous trillion-dollar conglomerate with businesses across the U.S. economy.
"I found myself in this position where I can run the kind of company I want to run and that's an extraordinary luxury," Buffett said.
“There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him,” said Tim Cook, CEO of Apple, in a tribute posted to social media. Cook said Buffett was leaving Berkshire in good hands with Abel.
The news came as an apparent shock to shareholders.
“It surprises me, but it impresses me,” said Ron Olson, a Berkshire board director, according to NBC News.
CFRA research analyst Cathy Seifert told the Associated Press there could be an effort to keep a “business as usual” approach at Berkshire.
“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert said.
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