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Warren Buffett Steps Down as Berkshire Hathaway CEO, Citing Aging

Word on the StreetThursday, May 15, 2025 4:11 am ET

1min read

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has revealed that his decision to step down from his role is driven by his acceptance of the aging process. In an interview, the 94-year-old billionaire acknowledged that he has begun to feel the effects of aging, which has influenced his decision to hand over the reins of the company to Greg Abel, his designated successor.

Buffett noted that there was no single moment when he decided to step down, but rather a gradual realization that his energy levels and work pace had slowed down compared to Abel's. He observed that Abel, who is 62 years old, exhibits a high level of energy and efficiency in his work, which has become increasingly apparent over the years. This contrast in their work styles and abilities has led Buffett to conclude that it is time for a transition.

During the Berkshire Hathaway annual meeting in May, Buffett announced that he would step down as CEO by the end of the year, with Abel taking over the role. The announcement came as a surprise to many, including Abel himself, who was unaware of the decision until it was made public. Buffett will continue to serve as the chairman of the board, with no set term for his tenure in this role.

Abel, who joined Berkshire Hathaway in 1999, has been instrumental in the company's energy business. Buffett praised Abel's management skills and investment acumen, noting that Abel's ability to drive initiatives and manage the company's operations has surpassed his own in recent years. Buffett expressed confidence in Abel's leadership, stating that the company will benefit from having Abel at the helm for as long as possible.

Buffett's decision to step down comes as a surprise to many, as he has long been seen as an indispensable figure in the company. However, Buffett has stated that he never considered himself a lifelong CEO and that he will continue to work as long as he is the most effective person for the role. He plans to remain active in the company, continuing to work from his office in Omaha and providing support to Abel and the rest of the team.

Despite his decision to step down, Buffett remains optimistic about the future of Berkshire Hathaway. He believes that Abel is well-equipped to lead the company and that the transition will be smooth. Buffett also expressed confidence in his own abilities as an investor, stating that he still possesses the valuable skills and instincts that have made him successful over the years. He plans to continue making investment decisions and providing guidance to the company, even after stepping down as CEO.

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