By Jonathan Stempel and Suzanne McGee
OMAHA, Nebraska (Reuters) -Warren Buffett is ending his career as perhaps the world’s most famous and revered investor, saying he will step down as chief executive of Berkshire Hathaway at the end of 2025, and hand over the reins to Vice Chairman Greg Abel.
The move caps an era for Berkshire after Buffett’s extraordinary 60 years at the helm, which made him a household name, a multi-billionaire and an American success story.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett, 94, said on Saturday as he wrapped up Berkshire’s annual meeting in Omaha, adding he would still “hang around and conceivably be useful in a few cases” but that the “final word” would be Abel’s.
The announcement prompted an outpouring of praise for Buffett from CEOs and investors.
“Warren Buffett represents everything that is good about American capitalism and America itself – investing in the growth of our nation and its businesses with integrity, optimism, and common sense,” said Jamie Dimon, CEO of JPMorgan Chase & Co.
Tim Cook, chief executive of Apple, in a post on X said: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him.”
Buffett’s move will propel Abel into the spotlight at Berkshire. Abel, who has long been identified by Berkshire to be Buffett’s successor, may not have the star power of Buffett although he is expected to preserve the culture of the conglomerate.
Buffett said Abel and most of Berkshire’s board of directors hadn’t been aware of his plans prior to the announcement, though Buffett had told his two children who are directors. Berkshire’s board of directors will meet on Sunday to discuss the transition, he said.
Abel, 62, has been a Berkshire vice chairman since 2018, and was named Buffett’s expected successor as chief executive in 2021.
“I couldn’t be more humbled and honored to be part of Berkshire as we go forth,” Abel told shareholders.
Buffett also said he had “zero” intention of selling any of his Berkshire stock, nearly all of which will be donated after his death.
“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,” Buffett said.
REMARKABLE RUN
The decision to step down caps a remarkable 60-year run where Buffett transformed Berkshire from a failing textile company into a $1.16 trillion conglomerate with businesses across the U.S. economy.