Fans of Berkshire Hathaway have long speculated about when Warren Buffett, the revered CEO and investor, might step down. Well, the moment came with a surprise during the company’s annual meeting on Saturday. The 94-year-old Oracle of Omaha revealed that he plans to resign at the end of the year and endorsed Greg Abel as his successor.
The board approved this decision, officially confirming Abel as the next CEO when Buffett steps down. It was reported that Buffett will continue to serve as the executive chairman of the company.
While the announcement of Abel, a 25-year veteran with Berkshire, may not have caught many off guard—Buffett had hinted at this transition back in May 2021. At that time, he said, “If anything happens to me tonight, Greg will take over tomorrow morning.”
At 62, Abel currently holds positions as chairman and CEO of Berkshire Hathaway Energy and as vice-chair of the non-insurance side of the business.
Interestingly, despite being born in Edmonton, where his career began, Abel took a different path into business compared to Buffett, who started investing at a young age. Buffett called Abel a “proud Albertan,” noting how his Canadian roots are evident during board discussions. He even mentioned Abel’s family connection to hockey through his uncle Sid, who played for the Detroit Red Wings.
Abel’s journey started with PricewaterhouseCoopers and later saw him join Calenergy, which was eventually acquired by Berkshire Hathaway in 1998. He took on significant leadership roles, eventually becoming president of what is now known as Berkshire Hathaway Energy.
Buffett also indicated Abel’s ability when he stated that Abel is actively addressing issues that arise within the company, unlike Buffett’s more laid-back approach. During a recent Q&A at the shareholders meeting, Abel described himself as “more active, but hopefully in a very positive way.”
Praise for Abel’s leadership extends beyond Buffett. Former Berkshire vice-chairman Charlie Munger called him a “sensational business leader,” highlighting his capability to motivate others and get results.
Abel has attributed his curiosity about business operations to observing Buffett’s approach. He emphasized that asking questions is crucial to understanding Berkshire’s diverse operations.
With board members expressing confidence in Abel’s readiness, one remarked, “Greg is ready. We’ve known for a long time.” As Abel looks forward to this new role, it remains to be seen whether he will embrace his long-term enjoyment of Buffett’s legacy.
Tim Cook, Apple’s CEO, also acknowledged Buffett’s impact, sharing that meeting him had been a great privilege and a source of inspiration.
