Warren Buffett, the legendary 94-year-old CEO of Berkshire Hathaway, just dropped a huge bombshell. He already announced plans to step down from his post by the end of 2025. He has asked that the company’s board name Greg Abel to succeed him. Greg has been serving as the vice chairman for non-insurance operations. This news comes just prior to the Berkshire Hathaway annual board meeting held on this Sunday. It comes just a few weeks before the company’s annual shareholder meeting.
Buffett expressed confidence in his decision, stating, “I think the time has arrived where Greg should become the chief executive officer of the company at year end.” This assertion serves as a reminder of Buffett’s long-known succession plan. He has already named as his successor Abel the head of the city’s public utilities department.
While Buffett is stepping down as CEO, he intends to continue playing a role with Berkshire Hathaway going forward. The board will continue to discuss what role he should play after his official departure date. Together, these changes may represent the biggest shift in approach for the New Orleans-based company. Its actives are heavily concentrated in healthcare, technology and – again, a large focus on Apple which constitutes over 20% of its total holdings.
In recent months, Berkshire Hathaway was in the news for liquidating half of its position in Apple. This bold move is a testament to the company’s strategic approach to nurturing investments in the funding-intensive tech sector. Its recent decision to cut its stake in Apple leadership underscores this change in strategy. The company has not shied away from continuing to invest deeply into technology and search for new opportunities within that vertical.
Berkshire Hathaway’s upcoming leadership transition represents not just a change in management but a new chapter for the homebuilder as it lays the groundwork for future success. So Abel had long been preparing for the moment he would take on this bold new role. He has a historic opportunity to introduce his own vision, while maintaining many of the principles that shaped Buffett’s leadership.
