Berkshire Hathaway confirmed a major leadership change on Saturday, May 3, as Warren Buffett stunned shareholders by announcing his eventual departure and endorsing his chosen successor. Hours after Buffett’s revelation at the annual shareholder meeting, the board of directors voted unanimously for Greg Abel to assume the role of CEO and president, beginning January 1, 2026.
A Historic Transition
At 94, Buffett has steered Berkshire Hathaway as CEO for 55 years. In a measured tone at the annual meeting, he remarked, “I think the time has arrived where Greg should become the chief executive of the company at year end.” With Buffett remaining as chairman of the board, the new leadership structure signals both continuity and change within the conglomerate. The decision was conveyed during the meeting, reflecting deep confidence in Abel’s ability to uphold the company’s proven investment philosophy.
Rising Through the Ranks
Abel, 62, has long been positioned as one of Buffett’s top hands. Since 2018, he has served as Berkshire Hathaway’s vice chair of non-insurance operations. In addition, he chairs Berkshire Hathaway Energy, a unit hailed by Buffett as one of the conglomerate’s four “jewels” in his 2021 annual shareholder letter. It was also the year Abel was initially identified as a successor candidate. Abel’s extensive background in energy management and his hands-on leadership style set him apart as a dynamic successor with a clear vision for the future.
Maintaining Strength and Tradition
Investors expect Abel to steer the company with the same disciplined investment approach that has long defined Berkshire Hathaway’s success. At the recent meeting, he assured shareholders that his immediate focus would be on maintaining the company’s “fortress of a balance sheet,” thereby securing the financial foundation necessary for large-scale investments without reliance on banks, as reported by Barron’s. Abel’s approach promises to combine prudence with proactive management, ensuring that the company’s robust financial strategies remain intact.
Berkshire Hathaway is also about tradition as much as strategy. In its 2024 annual report, Buffett wrote, “At 94, it won’t be long before Greg Abel replaces me as CEO and will be writing the annual letters. Greg shares the Berkshire creed that a ‘report’ is what a Berkshire CEO annually owes to owners.”
“And he also understands that if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well.” This statement not only affirms Abel’s fit with the company’s ethos but also reinforces the value placed on transparent communication with investors.
A Leader with a Grounded Past
Abel’s journey has been marked by relentless focus and steady ascent. A native of Canada who played hockey in his early years, he graduated with a commerce degree from the University of Alberta in 1984. His career began at PwC before he joined CalEnergy, a firm that evolved into MidAmerican Energy, eventually acquiring the name Berkshire Hathaway Energy. Abel led MidAmerican beginning in 2008 and continued to head Berkshire Hathaway Energy until 2018, showcasing his expertise in both the energy sector and corporate management.
In boardrooms and on local ice rinks in Des Moines, where he now resides, Abel is regarded as a “regular guy” with an approachable demeanor. His hands-on management style and clear financial acumen are expected to lead Berkshire Hathaway into a promising new era, bridging the traditions established by Buffett with forward-thinking strategies.
