Warren Buffett will remain chairman of Berkshire Hathaway after stepping down as chief executive at the end of the year, the company’s board of directors announced on May 5, after unanimously approving Vice Chairman Greg Abel as CEO effective Jan. 1, 2026.
“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett told the crowd. “I have no intention—zero—of selling one share of Berkshire Hathaway. I will give it away eventually.”
He called the decision to retain his full stake “an economic decision,” adding, “I think the prospects of Berkshire will be better under Greg’s management than mine.”
Buffett’s announcement marked the end of an era—and the beginning of the most significant leadership change in Berkshire’s modern history. Although Abel had long been identified as his successor, Buffett had repeatedly said he had no plans to step down.
Many had assumed the handoff would occur only after Buffett’s death. The unanimous vote by the board on May 4 made the transition process official.
During his tenure, Buffett transformed Berkshire from a humble Massachusetts textile mill into one of America’s most influential corporations, with major holdings across insurance, energy, transportation, consumer goods, and more.
As the company expanded, so did Buffett’s renown—Berkshire shares consistently outpaced the market, delivering an average annual return of 19.9 percent, compared to the S&P 500’s 10.4 percent.
Abel, who currently oversees Berkshire’s non-insurance operations, has earned praise for his management style and deep knowledge of the businesses. As incoming CEO, he will take on new responsibilities—most notably leading Berkshire’s insurance division and deciding how to allocate its vast cash reserves. Vice Chairman Ajit Jain will remain in place to help manage insurance operations.
Buffett’s endorsement of Abel during Saturday’s meeting in Omaha was unambiguous, and the crowd responded with a standing ovation.
The meeting also gave Buffett a platform to share his thoughts on market turbulence and investing discipline. He downplayed recent volatility and urged shareholders to focus on fundamentals.
“What has happened in the last 30, 45 days ... is really nothing,” Buffett said. “This [has] not been a dramatic bear market or anything of the sort.”
He reminded investors that Berkshire’s stock had dropped by 50 percent three times in its history, but the company’s fundamentals remained sound throughout.
