Greg Abel will take over pending board approval, and Buffett stated he won’t sell any Berkshire shares. Abel, the vice president of non-insurance operations, was named Buffett’s successor in 2021. Buffett will remain chairman until passing the role to his son Howard after his death.
“Greg should become CEO by the end of the year, and I want to pass that on to the directors,” Buffett said at the CHI Health Center in Omaha, Nebraska.
Only his children knew about his decision to step down.
Buffett, 94, received a standing ovation from thousands of attendees.
He was expected to discuss his succession plans at the event. Buffett has been with Berkshire Hathaway since its formation in 1965.
From early investor to one of the world’s richest people
Born in Omaha in 1930, Buffett started investing at age 11. He bought three shares of Cities Service stock for about $38 each in 1942 and later sold them for $40, making a $2 profit per share, although he would eventually sell them for $200 each.
At age 6, Buffett sold popular chewing gum and Coca-Cola, in which Berkshire now has a significant investment.
When he was 13, his family moved to Washington, D.C. after his father was elected to the U.S. House. Buffett delivered newspapers for the Washington Post and saved $2,000 by age 15, investing $1,200 in a 40-acre Nebraska farm.
By 20, Buffett had saved $5,000 through smart investing. After graduating from the University of Nebraska in 1950, he earned a master’s in economics from Columbia Business School and started his investment firm, Buffett Partnership, in 1956 with $100 of his own money.
In 1965, Buffett took over the struggling textile mill Berkshire Hathaway and transformed it into a major conglomerate with partner Charlie Munger.
Berkshire acquired See’s Candies and invested in Coca-Cola and ABC, among others.
By 2025, Berkshire’s market capitalization reached $1.1 trillion.
Buffett is now the fifth-richest person in the world, with a net worth of $169 billion, according to Bloomberg’s Billionaires Index.
Buffett Discusses Tariffs
Buffett shared his views on tariffs, calling the US trade war a “big mistake.” He stated, “Trade should not be weaponized,” and added that “trade can be an act of war.”
He noted the US has grown significantly over 250 years. Buffett received applause for suggesting, “(The US should) do what we do best and (other countries should) do what they do best.”
During the annual shareholder meeting, Berkshire Hathaway warned that tariffs could create uncertainty for the company’s future growth. Their quarterly report indicated that changes in trade policies could negatively impact their operations and investments.
Berkshire’s operating income dropped 14% in the first quarter, with its insurance business earning $1.33 billion, down nearly 50% from the same period in 2024.
Buffett attended the event, broadcast live on CNBC, amidst tight security and after Berkshire shares reached a record high. Notable attendees included Hillary Clinton, Tim Cook, and Bill Gates.
His comments came during a weekend event called “Woodstock for Capitalists,” amid rising concerns about the economy and market volatility related to President Trump’s tariffs.
Buffett talked about Berkshire’s cash reserves, noting they have around $347 billion, up from $334.2 billion at the end of 2024.
He mentioned that Berkshire will eventually find investment opportunities, but it won’t happen soon.
Buffett stated that they’ve made good profits by not always being fully invested. He suggested that passive investors can make simple investments and wait, but Berkshire aims to do better through strategic decisions.
He emphasized the need to avoid impulsive investing.
Buffett remarked that with around $40 billion coming in annually, it would be foolish to force investments of $50 billion each year.
He also mentioned that Berkshire has invested about $10 billion but did not disclose the exact amount.
Buffett thanked Apple at the event
He praised Tim Cook, who was on stage with other important guests. When Cook stood up, Buffett remarked, “Tim Cook has made Berkshire more money than I ever have.”
Berkshire Hathaway has significant investments in five companies: American Express, Bank of America, Coca-Cola, Chevron, and Apple. However, most of its investment value relies on Apple, valued at around $70 billion as of September 2024, according to the third-quarter earnings report.
“Steve Jobs built Apple, and Tim Cook grew it,” Buffett said, praising the tech company’s success. He noted that Cook has done a “fantastic job” managing Apple.
Berkshire cut its Apple stake by almost 50% in the second quarter of 2024, dropping from 790 million shares to 400 million. This was unusual for Buffett, who typically holds shares long-term.
“No major bear market”
Buffett eased concerns about recent market fluctuations, saying, “What happened in the last 30 to 45 days is really nothing.” The S&P 500 closed at 5,686.67, up from 5,675.12 on March 17. Buffett emphasized, “It’s not a dramatic bear market.”
Who will address the deficit?
The federal deficit hit $1.8 trillion in October, becoming a hot topic. Trump appointed Elon Musk to lead the Department of Government Efficiency, aimed at reducing federal spending. Buffett noted that the deficit is “unsustainable” and could become “uncontrollable.” He remarked, “It’s a job that must be done, but Congress struggles with it.” He mentioned that while spending is easy to increase, cutting income is challenging.
Greg Abel, Buffett’s successor
Before Buffett’s announcement, there were speculations about Abel succeeding him. Abel, 62, from Edmonton, is chairman and CEO of Berkshire Hathaway Energy and will take over in early 2026. He described himself as “more active” but emphasized the autonomy of Berkshire’s businesses. Buffett acknowledged Abel’s effective leadership style, stating, “Greg can do better at many things.”
Thousands attend the Oracle of Omaha
Berkshire Hathaway’s annual shareholder meeting is lively and engaging, unlike typical meetings. Attendees gather to hear from executives and meet Buffett, who draws large crowds. Berkshire’s extensive reach reflects the country itself, with connections to various everyday services. However, Buffett has expressed concerns about the company’s size and its ability to achieve significant early-stage gains, making him a revered figure to many investors.
