At Berkshire Hathaway’s annual meeting this Saturday, Warren Buffett, at the age of 94, shocked the crowd of 40,000 attendees with the announcement that he would step down as the company’s CEO by the end of 2025. The legendary investor confirmed that Vice Chairman Greg Abel would take over the role, marking the end of an era for the company. Buffett’s decision to retire has been anticipated for some time, but this formal announcement signals a major shift at the helm of the world’s most successful investment firm.

Buffett Passes the Torch to Greg Abel

Warren Buffett, often referred to as the “Oracle of Omaha,” confirmed that Greg Abel would be his successor as CEO of Berkshire Hathaway. Abel, currently the vice chairman overseeing the company’s non-insurance businesses, will take the reins of one of the world’s most valuable companies, worth $1.16 trillion.

During the annual meeting in Omaha, Buffett addressed shareholders directly, saying that he believed the time had come for Greg to assume leadership. “I believe the moment has arrived for Greg to assume the CEO role by year’s end,” Buffett stated, in what was one of the most significant moments of the event.

While Buffett’s retirement has been a topic of speculation for years, the confirmation that he would step down at the end of 2025 comes as a surprise to many. Buffett had selected Greg Abel as his successor in 2018 but had never provided a concrete timeline for his departure until now.

The Audience’s Reaction

The announcement stirred a strong emotional response from the audience. As soon as Buffett made his statement, the crowd of 40,000 shareholders rose to give him a standing ovation. True to form, Buffett responded with his characteristic humor. He joked that the enthusiasm of the crowd might have multiple interpretations, suggesting that people might be relieved to hear his retirement news.

Buffett also revealed that his two children, Howard and Susie Buffett, were the only ones who knew about his decision beforehand. Abel, who was seated beside Buffett on stage, appeared genuinely surprised by the public revelation.

Buffett’s Legacy and Future Plans

Under Buffett’s leadership, Berkshire Hathaway grew from a struggling textile company into one of the world’s largest conglomerates. Buffett expanded the firm’s holdings to include more than 60 companies, ranging from insurance giant Geico to snack favorite Dairy Queen. Additionally, Berkshire Hathaway holds significant equity stakes in major companies such as Apple, Coca-Cola, and Bank of America.

Despite his planned departure as CEO, Buffett confirmed that he would not be selling any of his Berkshire Hathaway shares. Instead, he plans to donate them all. “I have absolutely no plans to sell even a single Berkshire share,” Buffett said during his speech. “I intend to donate them all.” His decision to donate his wealth aligns with his long-standing commitment to philanthropy.

In a 2023 letter to shareholders, Buffett described how, despite his passion for the work, he felt like he was “playing in extra innings.” This analogy reflected his sense that he had exceeded expectations in his role and was preparing for the transition.

Buffett’s wealth continues to grow. As of last month, Bloomberg ranked him as the world’s fourth-richest person, with a net worth of $154 billion. His charitable contributions have also been substantial, and he remains one of the most generous philanthropists in the world.

A Life of Unconventional Wealth

Despite his immense wealth, Warren Buffett is known for his modest lifestyle. He still lives in the same Omaha home he bought in 1958 for just $31,500. His down-to-earth approach to life has made him a beloved figure not just in the investment community but also among the general public.

Buffett began earning money at the age of six, and by the time he was 11, he had already bought his first stock. At 13, he filed his first tax return. His journey from humble beginnings to the pinnacle of global wealth is one of the most remarkable stories in business history.

Buffett’s Criticism of Trade Policies

While the announcement of his retirement was the highlight of the meeting, Buffett also took the opportunity to speak out on issues of international trade. The billionaire investor sharply criticized former President Donald Trump’s tariff strategy, calling it a serious mistake.

Buffett warned that weaponizing trade could damage the United States’ global standing and harm economic cooperation. “It’s a serious error when 7.5 billion people distrust you while 300 million boast about success,” Buffett said. His comment reflected concerns over the rising nationalism and protectionism in global trade policies.

Instead, Buffett urged the U.S. government to focus on international collaboration, stressing that “each country should concentrate on what it does best while engaging fairly with others.” This philosophy aligns with Buffett’s long-standing belief in the power of free trade and the mutual benefit that countries can derive from cooperating economically.

What’s Next for Greg Abel?

As Buffett prepares to step down, all eyes are on Greg Abel, who will take over as CEO of Berkshire Hathaway. Abel, who has been with the company for over 20 years, has a reputation for strong leadership and business acumen. His appointment as CEO represents a seamless transition for the company, as he has already been overseeing much of Berkshire’s operations.

Abel has a background in energy, having led Berkshire Hathaway Energy before taking on his current role as vice chairman. His leadership style is expected to continue the company’s culture of conservative investing and long-term growth.

A New Era for Berkshire Hathaway

The announcement that Warren Buffett will step down as CEO of Berkshire Hathaway marks the end of an era for one of the most influential business figures in history. As he passes the torch to Greg Abel, Buffett’s legacy as one of the most successful investors of all time is assured.

While many will miss his wit and wisdom at the helm, Berkshire Hathaway is well-positioned for continued success under Abel’s leadership. The company’s strong financial foundation and diversified portfolio of businesses make it one of the most valuable firms in the world.