Warren E. Buffett serves as CEO of Berkshire Hathaway at the forefront of American capitalism, a conglomerate he built in the $1.1 trillion Colossus.
By the end of this year, he is ready to give up the role.
Mr. Buffett said at Berkshire’s annual shareholder meeting on Saturday that he plans to ask the company’s board of directors to make his heir Gregory Abel obvious, the CEO.
Mr. Buffett, 94, told thousands of Berkshire shareholders at a meeting in Omaha.
But Mr. Buffett added that he “still hang out in a few situations, which can be imagined useful.” He will continue to serve as Berkshire chairman – transferring the role to his son Howard Buffett’s death, remains the single largest shareholder of the company, with about 14% of shares worth about $164 billion.
Mr. Buffett’s plan, he said, was only two sitting among the children of Howard and Susan Buffett on the company’s board of directors, with Berkshire shareholders welcomed it minute by minute. Mr. Abel, 62, was surprised by his boss’ announcement. After the announcement, several board members who attended the Berkshire meeting hugged each other.
Despite Mr. Buffett’s physical health, this year’s annual meeting (his 60th at Berkshire) changed over the issue of Saturday’s investors, reflecting his advancement age. He used sugar cane, which he mentioned for the first time in his annual letter in February, and cut the shareholders’ meeting by several hours.
If the board of directors approves the plan, it will mark the end of the era of one of the most successful companies in modern capitalist history and one of its most famous investors. Mr. Buffett is a savvy stock picker who buys companies and holds them for a long time, thus accumulating wealth similar to MIDAS.
Through this investment philosophy, he formed a corporate group that operates a huge insurance business, a major railway, dozens of consumer companies, and oversees a huge stock portfolio.
Among Berkshire’s most famous holdings, many consumers recognize: auto insurer Geico, BNSF Railroad, Power Utility berkshire Hathaway Energy, Dairy Queen, See’s Candies, The Loom’s candy, paint company Benjamin Moore and private Jet Company Netjets. Together, these companies helped Berkshire increase its cash reserve, which is now nearly $348 billion, rather than McDonald’s stock market valuation.
Berkshire’s financial firepower made Mr. Buffett one of the most influential businessmen in the world, making statements on many topics, including politics, and weighing heavily. This includes his criticism of President Trump’s trade policy, which Mr. Buffett targeted on Saturday.
“Trade should not be a weapon,” Buffett said at the annual meeting. “I think this is wrong, I don’t think it is wise.”
Mr. Buffett’s comments on tariffs are far from his first foray into politics. A few years ago, former President Barack Obama, a Democratic supporter, posted his name on a proposal that would have raised taxes for millionaires. But Mr. Buffett has kept a low profile for months, and even on Saturday, he did not mention Mr. Trump’s name.
Mr. Buffett’s plan to resign will complete one of the most popular leadership changes in American businesses. Over the years, he has been on who can take over Berkshire, a uniquely complex business, and many executives have surfaced.
But in 2021, Mr. Buffett finally confirmed that when the company purchased the energy business in 2000, Mr. Abel joined Berkshire Fold. Since then, Canadian Executive has gradually escalated to transform everything now known as Berkshire Hathaway Energy into one of the largest electricity producers in the United States.
Mr. Abel is currently the Vice Chairman of Berkshire’s business outside of insurance. Oversight of the behemoth insurance business of the conglomerate has been kept with longtime Lieutenant Buffett Ajit Jain. Mr. Buffett and other executives claim to believe that Mr. Abel can maintain Berkshire’s culture.
“Greg is ready,” said longtime Berkshire director Ronald L.
Mr Olson added that he hopes Mr. Buffett will serve as a valuable voice committee for Mr. Abel, just as Mr. Buffett’s long-time business partner, passed away in 2023.
Mr. Buffett and Mr. Munger entertained investors, especially at Berkshire’s annual meeting, now the 60-year Berkshire annual meeting, with a kind of juggling show, Mr. Buffett as Wry Optimist, and Mr. Munger as a sharp pessimist.
Berkshire’s latest financial report card highlights the complications Mr. Abel will face as CEO.
The company reported a sharp drop in revenue in the first quarter, with operating income (Mr. Buffett’s preferred measure) down 14% from the same time a year ago to $9.6 billion. Berkshire reported using generally accepted accounting principles that net income fell by nearly 64%, mainly due to losses in paper investment.
But while the market’s reaction to Mr. Trump’s trade whip has become increasingly volatile, Mr. Buffett has little to worry about the impact of such volatility on Berkshire.
“It’s really nothing,” he told shareholders. He showed that riding in market competition is part of stock investment.
The company reported that its “most” business had lower sales and revenues in the first three months of the year, especially in insurance underwriting revenue, which was subject to losses related to California wildfires.
In a regulatory filing on Saturday, Berkshire warned that Mr. Trump’s trade policy was creating “conspicuous uncertainty” that could impact the company’s operating performance. “We are currently unable to reliably predict the potential impact on our business, whether through product costs, supply chain costs and efficiency changes, and customer demand for products and services.”
Berkshire’s cash pile rose to $347.7 billion, a record that reflects that Mr. Buffett has not yet found a blockbuster investment opportunity that will help put the company on the map. In the past, he admitted that given the size of Berkshire, it is now nearly impossible for Berkshire to find a deal that can meaningfully increase its revenue.
Mr. Buffett acknowledged cash in stocks during his Q&A session with shareholders at Saturday’s annual meeting, preparing for any potential buying opportunities. He revealed that he weighed $10 billion, but later declined to elaborate.
Berkshire continues to be the net seller of the stock, selling $4.68 billion worth of equity this quarter, compared with $3.18 billion in purchases.
One thing that Mr. Buffett didn’t speak directly on Saturday was what would happen to Todd Combs and Ted Weschler, who hired him more than a decade ago to help pick stocks for Berkshire. After Mr. Buffett left, it was widely believed that the two would become Berkshire stock pickers, although Mr. Combs has also become CEO of GEICO.
Saturday included Microsoft co-founder Bill Gates, Apple’s Tim Cook, one of Berkshire’s largest stock holdings, and billionaire financier William A. Ackman, Microsoft co-founder Bill Gates, Microsoft co-founder Bill Gates, and Microsoft co-founder Bill Gates. Meta CEO Mark Zuckerberg’s wife Hillary Rodham Clinton and Priscilla Chan were also present at the two first timers.
Andrew Ross Sorkin Contribution report.
