Warren Buffett to Retire as CEO of Berkshire Hathaway at End of 2025 After 55-Year Tenure, Amid Record Cash Balance

Warren Buffett, the legendary investor and CEO of Berkshire Hathaway Inc., has announced his intention to retire at the end of 2025, marking the end of his 55-year tenure as the longest-serving CEO of any S&P 500 company. This announcement was made during a shareholder meeting where Buffett received a standing ovation. Following the news, Berkshire Hathaway's stock experienced a 5% drop. Berkshire Hathaway's first-quarter earnings report revealed a record cash balance of $347.7 billion, with $42.2 billion in cash and cash equivalents and $305.5 billion in short-term U.S. government bonds. This cash reserve represents 29.9% of the company's total assets, a new high. Buffett has been selling stocks for 10 consecutive quarters and has not repurchased Berkshire's own stock for the 3rd straight quarter. Buffett's successor, Greg Abel, has amassed a personal fortune of $1 billion, though only about 18% of his wealth is tied to Berkshire Hathaway stock. Abel's stake in the company is valued at approximately $175 million, significantly less than Buffett's $160 billion stake. Abel's wealth primarily stems from a 2022 stock buyback of his $870 million stake in Berkshire Hathaway Energy, which he led from 2008 to 2018. Buffett's investment strategy has consistently outperformed the S&P 500, with Berkshire Hathaway shares rising over 5,500,000% since he took over in 1965. His approach to investing emphasizes patience and understanding of business models, as evidenced by his successful investments in companies like Apple, Coca-Cola, and American Express.