Berkshire Hathaway shares took a hit on Monday following a landmark announcement by Warren Buffett that he will step down as CEO at the end of 2025, after six decades leading the company. Greg Abel, the current vice chairman, has been approved by the board to assume the role of president, according to the statement released over the weekend.
Buffett, 94, will stay on as chairman of the board, ensuring his continued influence within the conglomerate. Despite his decision to resign as chief executive, the billionaire investor reiterated his support for Abel, stating that “the final word” would lie with him after assuming the helm.
Both Class A and Class B shares of Berkshire Hathaway fell approximately 5.5% during early Monday trading. The announcement was made during the company’s annual shareholder meeting in Omaha, catching many by surprise, as most of the board and Abel himself were unaware of the change until disclosed.
Abel, 62, who has been with the company since 1992 and became vice chairman in 2018, was publicly identified as Buffett’s successor in 2021. Despite being less of a public figure than Buffett, Abel is perceived as capable of maintaining the company’s foundational values and decentralized management style.
Concerns over Abel’s capability to fill Buffett’s legendary shoes have surfaced among investors, who regard the original Berkshire leader as an unparalleled investing prodigy since he bought his first stock at age 11. However, Buffett assures that Abel is well-positioned to steer the company successfully into the future, having been closely involved in its operations for decades.
