Warren Buffett, the legendary investor who transformed Berkshire Hathaway into one of the world’s most respected conglomerates, will remain as chairman after stepping down as CEO, the company announced. The move came just days after Buffett revealed at the company’s annual meeting in Omaha, Nebraska, that he would retire from his position as CEO, ending more than six decades of leadership. Although Greg Abel’s ascension to CEO had been expected for several years, Buffett’s retirement was a surprise, leading to a 5% drop in Berkshire’s stock, which reduced the company’s market value by $59 billion to $1.11 trillion. The change in leadership coincided with a first-quarter report that showed operating profits falling short of analyst expectations, partly due to insurance losses from wildfires.
Buffett, who took control of Berkshire Hathaway on May 10, 1965, after a dispute with the company’s previous management, has guided the firm through remarkable growth. Under his leadership, Berkshire expanded to include 189 businesses such as Geico, BNSF railroad, Dairy Queen, and See’s Candies, alongside a sizable stock portfolio featuring major investments in Apple. The company’s stock price has mirrored Buffett’s success, with annualized returns that have nearly doubled the performance of the S&P 500. Although Buffett’s departure from the CEO role marks a major change, the board has approved Abel’s promotion to CEO, effective January 1, 2026.
Buffett’s decision to stay on as chairman reassures shareholders, providing continuity as Abel takes over the day-to-day operations of the conglomerate. Abel, who has been with Berkshire since 2000 and has served as vice chairman since 2018, will now oversee the company’s non-insurance businesses, while insurance units will report to Vice Chairman Ajit Jain. The announcement of Buffett’s intention to remain involved as chairman is seen as a source of stability for investors, particularly as Berkshire holds a significant cash reserve of $347.7 billion, which may be used for future acquisitions. Buffett’s enduring influence and mentorship are expected to help guide the company through this leadership transition.
Berkshire’s annual meeting, which has drawn thousands of investors from around the world, will continue to be a major event, although this year’s gathering was marked by the passing of Buffett’s longtime business partner, Charlie Munger. While Howard Buffett, Warren’s son, is expected to take on a non-executive chairman role in the future, Abel’s leadership will define the next era for Berkshire Hathaway.
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