Legendary investor Warren Buffett has formally stepped down as the chief executive of Berkshire Hathaway, marking the end of a six-decade era that transformed a struggling textile mill into a global investment powerhouse valued at over $1 trillion. His successor, long-time deputy Greg Abel, now faces the monumental task of steering the conglomerate into a new future.
Buffett's Unwavering Confidence in His Successor
In a significant endorsement, Warren Buffett expressed supreme confidence in Greg Abel's capabilities. Speaking to CNBC, Buffett stated that he would prefer Abel to manage his own money over any top investment advisor or CEO in the United States. He praised Abel's efficiency, noting, "I can't imagine how much more he can get accomplished in a week than I can in a month."
Buffett also made a bold prediction about the company's longevity under its new leadership. He told CNBC that Berkshire Hathaway has a better chance of surviving for the next 100 years than any other company he can think of, firmly placing his trust in the foundation he built and the team taking over.
A Delicate Transition and the Challenges Ahead
The leadership change comes at a pivotal moment for the Omaha-based giant. According to a Reuters report, the conglomerate lagged behind the S&P 500 in 2025, and Buffett himself had acknowledged the growing difficulty of finding acquisitions large enough to move the needle for a company of Berkshire's vast scale.
Abel, 63, inherits an unprecedented war chest. As of September 30, Berkshire's cash and equivalents stood at a staggering $381.7 billion. This massive reserve, accumulated even as the company trimmed stakes in longtime holdings like Apple and Bank of America, presents both an opportunity and a challenge for the new CEO to deploy it effectively.
The End of an Iconic Era
Warren Buffett's departure on Friday (local time) was met with a modest dip in Berkshire's share price, reflecting the market's adjustment to a new reality. For decades, Buffett's long-term strategy and focus on buying quality businesses at reasonable prices delivered steady gains that outpaced the broader market, earning him a cult-like following.
Analysts like Brian Jacobsen, chief economic strategist at Annex Wealth Management, noted to Reuters that "it's hard to imagine that there will be the same cult following" without Buffett at the helm. However, they also point out that Buffett has meticulously planned this succession for years to ensure a smooth handover.
Greg Abel, who joined Berkshire in 2000 after its acquisition of MidAmerican Energy (now Berkshire Hathaway Energy), has been a key figure in the company's operations. As Buffett himself declared, "Greg will be the decider" now. The investment world watches closely to see how Abel will wield this authority and navigate Berkshire Hathaway through its next chapter.
