Warren Buffett to Retire as Berkshire Hathaway CEO, Remain Chairman; Greg Abel Takes Over Jan 1, 2026
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Warren Buffett, aged 94, has announced he will retire as CEO of Berkshire Hathaway at the end of 2025, after a six-decade tenure that transformed the company from a textile manufacturer into a global conglomerate. Buffett will remain as chairman following his retirement as CEO.
Greg Abel, currently vice chairman and head of Berkshire Hathaway’s energy division, has been named as Buffett’s successor and will assume the role of CEO on January 1, 2026. Abel has a net worth of approximately $1 billion, with about $175 million in Berkshire shares.
Under Buffett’s leadership, Berkshire Hathaway achieved an estimated 5,500,000% return since 1964, compared to the S&P 500’s 39,054% over the same period. The company now has a market capitalization of $1.2 trillion and holds a record cash pile of $347.7 billion.
Buffett’s investment strategy focused on acquiring high-quality businesses at fair prices and holding them for the long term, with major stakes in companies such as Apple, Coca-Cola, American Express, and Bank of America. Berkshire’s portfolio includes over 180 companies and a significant position in U.S. Treasury bills.
Abel’s appointment raises questions about the future direction of Berkshire Hathaway, including potential changes to its executive structure, compensation policies, and investment approach. Abel’s relatively small ownership stake in Berkshire compared to Buffett’s has also drawn attention.
Buffett’s tenure included both successes and notable investment missteps, such as with Salomon Brothers and Occidental Petroleum. The transition is being closely watched by shareholders and the broader investment community.
Without fat pitches in undervalued/distressed assets and/or more frequent crises, $BRK may struggle to outperform the gravitational pull of index returns, or even risk underperforming the broader market.
