“I think it’s time for Greg (Abel) to become the company’s chief executive at the end of the year,” Buffett said.
Investor and billionaire Warren Buffett told the arena full of shareholders on May 3 that he would leave by the end of the year, and has been running the Berkshire Hathaway Company, which made him a world-renowned investor for nearly 60 years.
Buffett said his company’s vice-chairman, Greg Abel, would recommend that he be replaced in a discussion with the Berkshire Hathaway board on Sunday.
“I think it’s time for Greg to become the company’s chief executive at the end of the year,” Buffett said.
Abel was Buffett’s designated successor for many years, but it was expected that Buffett would not take over until his death, while managing many of Berkshire’s uninsured businesses. Plus, Buffett, 94, has always said he has no intention of retiring.
The announcement of his retirement came at the end of a five-hour question-and-answer period, and Buffett did not ask any questions about the topic. The only officers he knew beforehand were his two children, Howard and Susie Buffett.
Abel, who was located next to Buffett on stage, had never known before. An hour later, Abel returned without a boss and held a formal business meeting for Berkshire Hathaway, where he responded to the news.
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“I just want to say that as we moved forward, we couldn’t be humbled and honored to be part of Berkshire,” Abel said.
Many investors have expressed confidence in Abel’s ability to run the company, but it is not yet clear how this will extend to Berkshire’s funding investment. On Saturday, Buffett supported his successor and promised to continue investing his money in the company.
“We don’t intend to sell a single share of Berkshire Hathaway, and we’ll ultimately pass it on,” Buffett said. “The decision to maintain all share is an economic decision because I think Berkshire’s outlook is better under Greg’s management than mine.”
After announcing his retirement, Buffett met standing ovations from thousands of investors at Omaha Arena, leading the company for 60 years and celebrated it.
During his tenure, Berkshire almost doubled the S&P 500’s return, combining an annual growth rate of 19.9% compared to an index’s 10.4% increase.
Meanwhile, Buffett copied his investments and attracted dedicated supporters of investors who moved across the market whenever his plans were published.
Abel has already managed much of Berkshire for many years, but that doesn’t involve making company insurance services or cash investment decisions. Once he takes on these tasks, Vice Chairman Ajit Jain will remain to help manage the insurance company.
The Associated Press contributed to this report.
