Warren Buffett shocks traders by saying retirement from Berkshire Hathaway on the finish of the 12 months | EUROtoday

Billionaire investor Warren Buffett has shocked traders after saying he shall be stepping down as CEO of Berkshire Hathaway on the finish of the 12 months.

The 94-year-old, the world’s fifth richest man, made the shock announcement on the firm’s 2025 investor convention on Saturday.

Back in May 2021, Buffett introduced that then-vice president Greg Abel would succeed him on the head of the corporate, however didn’t present a definitive timeline for when he could be handing over the reins.

“I think the time has arrived where Greg should become the chief executive officer of the company at year end and I want to spring that on the directors eventually and give that as my recommendation,” he stated on the convention on Saturday.

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Abel already manages all of Berkshire’s non-insurance companies, and is reportedly now not considered internally as a “CEO-in-waiting” at the company.

However, it was always assumed he would not take over officially until after Buffett’s death. Buffett, who turns 95 in August, has always maintained that has no plans to retire.

The shock announcement came at the end of a five-hour question and answer period, though the billionaire did not take further questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett.

Abel, who was sitting next to Buffett on stage, reportedly had no warning.

Investors and analysts alike have said they believe Abel will do a good job running Berkshire Hathaway, and it is expected that he will preserve Buffett’s conservative approach to the business, as well as uphold the $865 billion conglomerate’s track record of investing in companies for the long haul.

“We have a really particular firm in Berkshire, but it surely’s that tradition that makes it particular, and that is not going to vary,” Abel said at a recent shareholder meeting.

Buffett backed Abel further on Saturday by pledging to keep his fortune invested in the company.

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”

The thousands of people gathered for the conference in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company.

CFRA research analyst Cathy Seifert said it had to be hard for Buffett to reach this decision to step down.

“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert toldThe Associated Press. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”

Abel is well regarded by Berkshire’s managers and Buffett has praised his business acumen for years, though he will have big shoes to fill.

“I think the challenge he’s going to have is if anyone is going to give him Buffett or [former Vice Chairman Charlie] Munger’s pass card? Not a chance in God’s name,” stated Cole Smead of Smead Capital Management.

Buffett has stated that Abel would possibly even be a extra hands-on supervisor than he’s and get extra out of Berkshire’s firms.