[Picture of Warren Buffett, photo credit to Pixabay]

On May 3, 2025, Warren Buffett announced his plans to retire as Chief Executive Officer of Berkshire Hathaway at the end of the year at the age of 94.

Greg Abel, the company's current Vice Chairman, has been named as Buffett's successor and will assume the role of CEO, while Warren Buffett will continue to serve as Chairman.

Four years ago, Warren Buffett publicly identified Greg Abel as his intended successor for the company, stating with confidence, “He was already ready. I haven’t taught him anything,” according to the Wall Street Journal, with great confidence and respect for Abel’s abilities.

Warren Buffett didn’t inform Abel of his retirement timeline, so Abel reportedly was unaware of this news when he was confirmed as the next CEO.

Buffett noted that only his family knew when he would retire.

He added, "I think the time has arrived where Greg should become the chief executive of the company at year's end," as reported in a BBC interview.

Berkshire Hathaway, ranked the 8th-largest company in the U.S. in 2024, is a company that owns a varied range of private businesses and interests in public companies, meaning it has a diverse portfolio.

It owns a wide range of private businesses and holds substantial stakes in major publicly traded companies, including Apple, Coca-Cola, and Bank of America. 

Beyond its investment holdings, it also operates in industries such as insurance, freight rail transportation, and utility energy generation and distribution.

Warren Buffett, American investor and philanthropist, is famous for his successful investment strategies in stocks and his humble lifestyle.

Despite being the 4th wealthiest person in the U.S and 8th in the world, he is known for living a frugal life, dedicating his time to reading and continuing his thoughtful investing.

A lot of people revered his long-term investment philosophy and leadership, and his generosity, which he provides, such as donating a significant wealth of his fortune to charitable causes.

As a CEO, his vision and leadership have been significant in shaping Berkshire Hathaway’s success.

What began as a small textile mill company in the 1960s evolved into one of the world’s largest holding companies under Buffett’s stewardship.

After he acquired the company in 1965 and used the textile company’s profits to buy other companies to ensure the company’s survival and growth, they bought a life insurance company and more.

News of Buffett's impending retirement has sparked concerns about the future direction of the Berkshire Hathaway company.

However, Buffett reassured investors that he doesn’t have any plans to sell Berkshire’s stocks yet.

He stated, “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,” according to the CNBC interview. 

Greg Abel, a Canadian businessman, has served as Vice Chairman of Berkshire Hathaway’s non-insurance companies since 2018.

He proved his potential by inspecting Berkshire companies such as See’s Candy Shop, aerospace group Precision Castparts Corp., etc, as Buffett confirmed his skills.

He also played a pivotal role in making MidAmerican company into a powerhouse with his investments.

Though Abel will inevitably face hardships in preserving the company's legacy and momentum, as the CEO, the future now rests on his shoulders.

Berkshire Hathaway’s prosperity will continue, as Warren Buffett has retired, and Greg Abel will be the next leader to write history for the company’s next chapter.