“No Magic Moment”: Warren Buffett Reveals Why He Stepped Down

Warren Buffett, the iconic investor and long-time CEO of Berkshire Hathaway, has announced his decision to step down from his role as CEO effective December 2025, marking the end of an extraordinary era for the conglomerate he has led since the spring of 1965.

In a candid interview, Buffett, now 94, revealed that his decision stemmed from a gradual recognition of the effects of aging and the standout capabilities of his successor, Greg Abel. While Buffett will relinquish the CEO title, he plans to remain chairman of Berkshire’s board and continue contributing to the company he built into a global powerhouse.

Unlike many high-profile retirements marked by a defining moment, Buffett’s decision to step down unfolded organically. “There was no magic moment,” he told the reporter. “How do you know the day that you become old?” For Buffett, the realization came after his 90th birthday, when he began noticing subtle but undeniable signs of aging: occasional balance issues, difficulty recalling names, and a sense that newspapers were printed with “too little ink”—a likely nod to his declining eyesight. “I didn’t really start getting old, for some strange reason, until I was about 90,” he said. “But when you start getting old, it’s irreversible.”

This introspective acknowledgment coincided with Buffett’s observation of a growing gap between his energy levels and those of Greg Abel, his 62-year-old designated successor. “The two men were operating at different speeds—increasingly so,” Buffett noted, highlighting Abel’s ability to accomplish more in a day than he could. For a man who has long prized efficiency and effectiveness, this disparity became a key factor in his decision.

Though Buffett’s exit as CEO paves the way for Greg Abel, a seasoned executive who has earned the billionaire’s highest praise. Abel joined Berkshire Hathaway in 1999 through its investment in MidAmerican Energy, where his leadership in the energy sector caught Buffett’s attention. By 2018, Abel had risen to vice chairman, overseeing all noninsurance operations, and in 2021, he was formally named Buffett’s successor.

Buffett has lauded Abel’s rare combination of managerial and financial acumen. “Really great talent is rare,” he said. “It’s rare in business. It’s rare in capital allocation. It’s rare in almost every human activity you can name.” Abel’s ability to manage Berkshire’s diverse portfolio—which spans insurance giants like GEICO, utilities, a railroad, and consumer brands such as Dairy Queen and Duracell—has proven him a worthy heir. “It was unfair, really, not to put Greg in the job,” Buffett added. “The more years that Berkshire gets out of Greg, the better.”

The announcement came as a surprise even to Abel, who learned of Buffett’s decision alongside shareholders at the Berkshire annual meeting on May 3. As the crowd erupted in applause, Buffett outlined his plan: Abel will assume the CEO role in December 2025, while Buffett retains his position as chairman.

Buffett’s tenure at Berkshire Hathaway is a testament to his unparalleled vision. Taking control of a struggling textile manufacturer in 1965 at age 34, he transformed it into a conglomerate with a market capitalization exceeding $900 billion. Today, Berkshire’s holdings include significant stakes in blue-chip companies like Apple and American Express, alongside its vast operating businesses. Yet, as the company evolved, so did the demands of its leadership—a reality Buffett recognized in choosing Abel.

“I thought I would remain CEO as long as I thought I was more useful than anybody else,” Buffett reflected. “And it surprised me, you know, how long it went.” His decision to step down underscores a strategic focus on Berkshire’s long-term success rather than a lifelong hold on power.

Though he is relinquishing the CEO role, Buffett has no intention of retiring fully. “My health is fine, in the sense that I feel good every day,” he said. “I’m here at the office and I get to work with people I love.” He plans to continue coming into his Omaha office, joking, “I’m not going to sit at home and watch soap operas. My interests are still the same.”

Buffett also emphasized that his investing instincts remain intact. “I don’t get fearful when things go down in price or everybody else gets scared,” he said, a trait he believes Abel shares. This resilience will be critical as Berkshire navigates its next phase, particularly with its substantial cash reserves—currently a focal point for investors eager to see the company’s next major move. “He will have ideas about where money should be invested,” Buffett said of Abel, signaling confidence in his successor’s capital allocation skills.

Buffett’s decision to step down as CEO reflects both a personal reckoning with age and a forward-looking commitment to Berkshire Hathaway’s future. By entrusting the role to Greg Abel, Buffett ensures that the company will benefit from fresh energy and proven leadership while he remains a guiding presence as chairman. As the financial world anticipates this transition, Buffett’s legacy as one of history’s greatest investors remains firmly intact, even as he prepares to take a step back from the helm.