Warren Buffett, the 94-year-old “Oracle of Omaha,” announced his retirement as CEO of Berkshire Hathaway at the company’s annual shareholder meeting held on May 3, 2025. After leading the conglomerate for six decades, Buffett revealed that Greg Abel, currently Vice Chairman overseeing non-insurance operations, will succeed him by the end of the year. Buffett expressed confidence in Abel’s leadership, stating, “I think the prospects of Berkshire will be better under Greg’s management than mine,” and affirmed his commitment to retain all his Berkshire shares.
Key Highlights from the 2025 Berkshire Hathaway Annual Meeting:
- Leadership Transition: Buffett’s retirement marks the end of an era. Greg Abel, known for his effective management of Berkshire’s non-insurance businesses, including BNSF Railway and Berkshire Hathaway Energy, is set to take over as CEO. Abel’s leadership style is described as hands-on and team-oriented, and he has pledged to uphold Berkshire’s core principles of ethical business practices and long-term value investing.
- Financial Position: Berkshire Hathaway reported a record cash reserve of $334.2 billion, reflecting Buffett’s cautious approach in the current market environment. Despite market volatility, the company’s stock has risen 19% this year, outperforming the S&P 500.
- Investment Strategy: Buffett reaffirmed his commitment to long-term investments, particularly in Japanese trading houses like Mitsubishi and Mitsui, indicating no plans to divest these holdings. He emphasized the importance of maintaining a disciplined investment approach amidst global economic uncertainties.
- Economic Outlook: Expressing concern over the U.S. fiscal deficit, Buffett warned that the current trajectory is “unsustainable over a very long period.” He also criticized using tariffs as a trade policy tool, suggesting they could lead to global instability.
- Legacy and Philanthropy: Buffett reiterated his philanthropic commitment, confirming that he will donate nearly all his wealth to charitable causes. He plans to remain involved with Berkshire Hathaway in an advisory capacity, ensuring a smooth transition and continuity of the company’s culture and values .
Buffett’s retirement signifies a significant shift in Berkshire Hathaway’s leadership. Still, with Greg Abel at the helm, the company is poised to continue its legacy of prudent management and long-term value creation.
Eating healthy is not a scam. Some exceptional cases cannot be generalised.