‘I think the time has arrived where Greg [Abel] should become the chief executive officer of the company at year end,’ Buffett said.
Investor and billionaire Warren Buffett told an arena full of shareholders on May 3 that he will retire by the end of the year, capping off roughly six decades of running his Berkshire Hathaway firm that made him a world-famous investor.
Buffett said he will recommend his firm’s vice chairman, Greg Abel, to replace him in discussions with Berkshire Hathaway’s board on Sunday.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said.
While Abel has been Buffett’s designated successor for years, amid managing much of Berkshire’s noninsurance businesses, it was expected that he would not take over until after Buffett died. Additionally, Buffett, 94, had always said he had no intention to retire.
The retirement announcement was made at the close of a five-hour question-and-answer period, with Buffett not taking questions on the topic. The only board members who knew ahead of time were his two children, Howard and Susie Buffett, he said.
Abel, who was positioned next to Buffett on stage, did not know in advance. An hour later, Abel returned without his boss to conduct Berkshire Hathaway’s formal business meeting, where he reacted to the news.
“I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward,” Abel said.
Many investors have expressed confidence in Abel’s ability to run the firm, but it’s not yet clear how that will extend to investments of Berkshire’s funds. On Saturday, Buffett endorsed his successor and pledged to keep his money invested in the firm.
“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.”
By Jacob Burg
