Warren Buffett has announced that he is stepping down as Berkshire Hathaway’s (BRK.A/BRK.B) chief executive officer (CEO) at the end of this year.
Buffett made the announcement at Berkshire’s annual shareholder meeting on May 3, surprising both shareholders of the company and his successor, Canadian businessman Greg Abel.
Berkshire Hathaway’s board of directors met on May 4 and voted unanimously to make Abel president and CEO of the holding company effective Jan. 1, 2026.
Buffett, who is age 94, will remain as chairman of Berkshire Hathaway, the company he has owned and run since 1965.
Abel, age 62, is currently the vice chairman of non-insurance operations at Berkshire Hathaway and overseas most of the company’s investments.
Buffett is Berkshire Hathaway’s largest shareholder and continues to own 15% of the diversified holding company that has interests in everything from railroads and insurance to restaurant chains and furniture retailers.
Originally from Edmonton, Abel holds an accounting degree from the University of Alberta and is a certified public accountant.
Abel was named by Buffett as his successor several years ago and has been waiting in the wings ever since.
Also over the weekend, Berkshire Hathaway reported its first-quarter financial results.
The results showed that the company’s operating earnings, which include the insurance and railroad businesses, declined 14% to $9.64 billion U.S.
Much of that decline was driven by a 48% decrease in Berkshire’s insurance-underwriting profit due largely to the Los Angeles, California wildfires.
Berkshire’s cash pile rose to a record during the first quarter, climbing to $347 billion U.S. from $334 billion U.S. at the end of 2024.
The company was a net seller of stocks during Q1 for a 10th consecutive quarter.
Buffett blamed tariff uncertainty for at least part of Berkshire Hathaway’s disappointing results and said at the annual meeting that “trade should not be a weapon.”
The stock of Berkshire Hathaway has risen 20% this year, far outpacing the broader stock market that is in negative territory in 2025.
Berkshire’s more affordable Class B stock currently trades at $539.80 U.S. per share.
