Warren Buffett to Retire as Berkshire Hathaway CEO Ending a Legendary Era

On May 3, in a surprise announcement during Berkshire Hathaway's annual shareholders meeting, Warren Buffett declared his intention to retire as CEO by the end of the year. This marks the conclusion of his remarkable 60-year leadership at the company. Buffett has recommended Greg Abel, the current Vice Chairman of non-insurance operations, to succeed him, describing Abel as ready for this pivotal role.

The announcement came after a lengthy five-hour Q&A session, catching everyone except his children, Howard and Susie Buffett, off guard. For years, Abel has been the anticipated successor, although it was widely believed this would occur posthumously for Buffett. The legendary investor had previously insisted he had no immediate plans to retire. Investors hold strong confidence in Abel, anticipating that he will adeptly steer the conglomerate. However, his strategy for handling Berkshire’s vast cash reserves remains under scrutiny.

Buffett's departure represents the end of an era. A follower of Benjamin Graham’s value investing philosophy, he gained full control of the struggling textile company, Berkshire, in 1965. Under his leadership, it evolved into a diverse holding company, encompassing major interests like Geico, BNSF Railway, Berkshire Energy, and several prominent retailers. Over the decades, Berkshire Hathaway has enjoyed a compounded annual growth rate of nearly 20% in its stock, far outpacing the S&P 500.

Apple's CEO, Tim Cook, paid tribute to Buffett in a heartfelt social media post on May 4, defining his acquaintance with Buffett as one of life’s treasured experiences. Cook expressed trust in Abel’s future leadership of Berkshire, reinforcing market and investor confidence in the potential for continued stable growth under Abel's stewardship. At the same time, he acknowledged Buffett’s exceptional wisdom, which has inspired countless individuals.

This leadership transition closes a chapter in Buffett's storied career while paving the way for new beginnings at Berkshire. Cook’s words echoed a broader sentiment within the business community, underscoring both admiration for Buffett’s achievements and confidence in the institutional legacy he leaves behind.