Warren Buffett, 94, announced on Saturday that he will step down as CEO of Berkshire Hathaway at the end of 2025, officially passing the reins to Vice Chairman Greg Abel. The long-anticipated transition was confirmed during the company's annual shareholder meeting in Omaha, Nebraska, where Buffett received a standing ovation from the thousands gathered at the CHI Health Center.
"Greg should become the chief executive officer of the company at year-end, and I want to spring that on the directors effectively," Buffett said. Abel, who oversees all non-insurance operations and leads Berkshire Hathaway Energy, was named Buffett's successor in 2021. Buffett will remain as chairman and plans to eventually transfer that role to his son, Howard Buffett.
The announcement came during a wide-ranging four-hour meeting, often dubbed "Woodstock for Capitalists," where Buffett also addressed market turbulence, federal deficits, and global trade tensions. On tariffs, he offered a rare and pointed rebuke: "Trade should not be a weapon." He added, "We should do what we do best, and they should do what they do best," drawing applause from the crowd.
Berkshire Hathaway posted a 14% decline in operating earnings for the first quarter of 2025. Its insurance underwriting business brought in $1.33 billion, down from $2.6 billion in Q1 2024. The company's quarterly report warned, "Changes in macroeconomic conditions and geopolitical events, including changes in international trade policies and tariffs, may negatively affect our operating results."
Buffett avoided naming former President Donald Trump, whose administration's tariff policies have unsettled global markets. However, his disapproval was clear. "The more prosperous the rest of the world becomes ... the more prosperous we'll become," Buffett said. "Trade could be an act of war."
Despite macroeconomic headwinds, Berkshire is flush with liquidity. The conglomerate is now sitting on $347 billion in cash, up from $334.2 billion at the end of 2024. Buffett said the company would invest the funds carefully and avoid impulsive moves. "We have made a lot of money by not being fully invested at all times," he said.
Buffett praised Apple CEO Tim Cook during the event, stating, "Tim Cook has made Berkshire a lot more money than I've ever made Berkshire Hathaway." Apple remains one of Berkshire's largest holdings, though the firm cut its stake nearly in half in 2024 from 790 million shares to 400 million.
Addressing concerns over market volatility, Buffett said: "What has happened in the last 30, 45 days ... is really nothing. This has not been a dramatic bear market or anything of the sort." The S&P 500 closed Friday at 5,686.67, up slightly from 5,675.12 in mid-March.
On the rising U.S. deficit-now at $1.8 trillion-Buffett expressed skepticism about Washington's ability to curb spending. "If something can't go on forever, it will end," he said, quoting economist Herbert Stein. "It's easy to increase spending; it's hard to cut people's receipts."
Greg Abel, 62, who sat beside Buffett during the session, spoke of continuity and stewardship. "I would say, 'more active,'" Abel said of his style. "We've got an exceptional group... If there are opportunities they see in their industry, we're going to discuss it."
Buffett endorsed Abel's leadership, noting, "It's working way better with Greg than with me... Greg can do better at many things." He added, "You really need someone that behaves well on top... Greg does something about it and I've generally been lax in doing something about it."
With a market capitalization of $1.1 trillion, Berkshire Hathaway spans sectors from insurance to railroads, energy to consumer goods. As Buffett transitions out, shareholders now look to Abel to maintain the sprawling empire's growth without the day-to-day oversight of the "Oracle of Omaha."
Buffett founded Berkshire Hathaway in 1965 after acquiring a struggling New England textile mill. Over six decades, he built it into a financial powerhouse, investing in brands like Coca-Cola, American Express, and Geico, and cultivating a loyal base of investors who treat his annual letters and appearances as doctrine.
"I told my kids: Do not sell it," said Lorenzo Alaan, a longtime shareholder attending the meeting from Florida. "You sell your house, your jewelry, don't sell Berkshire."
