The legendary investor and world's fifth wealthiest person, Warren Buffett-- called `Oracle of Omaha'--is stepping down as the chief executive officer of Berkshire Hathaway.
In an announcement long anticipated but still difficult for many investors to believe, Buffett, 94, told Berkshire Hathaway’s annual shareholder meeting at Omaha, Nebraska, that he would step down as CEO at the end of the year. Only Buffett’s children were aware of the decision in advance. The thousands in attendance gave the billionaire a standing ovation.
Greg Abel, currently vice-chairman overseeing non-insurance operations, is set to assume the CEO role. Buffett will continue as chairman, with his son, Howard Buffett, expected to take over that role upon his death.
The shareholder meeting was attended by high-profile figures including Hillary Clinton, Apple CEO Tim Cook and Bill Gates. It was broadcast live on CNBC and came just a day after Berkshire shares hit an all-time high.
Born in Omaha in 1930, Buffett began investing at the age of 11, buying three shares of Cities Service for around $38 each. He sold them for a modest profit but later realised he could have made much more had he waited.
Buffett was selling chewing gum and bottles of Coca-Cola by the age of six, a product in which Berkshire now holds a substantial stake. At 13, his family moved to Washington, D.C., where he delivered newspapers for The Washington Post. By 15, he had earned $2,000 and invested $1,200 in a 40-acre farm in Nebraska.
After graduating from the University of Nebraska in 1950, Buffett earned a master’s in economics at Columbia Business School. In 1956, with just $100 of his own money, he launched Buffett Partnership.
In 1965, he took control of a struggling textile firm, Berkshire Hathaway, and turned it into a vast conglomerate alongside long-time partner Charlie Munger. Over the years, Berkshire acquired See’s Candies, and significant stakes in Coca-Cola, ABC, and more.
By 2025, Berkshire had a market capitalisation of $1.1 trillion. According to Bloomberg’s Billionaires Index, Buffett is the fifth-richest person in the world, with an estimated net worth of $169 billion.
Buffett also spoke candidly about trade policy, calling America’s tariff strategy a “big mistake”. “Trade should not be a weapon,” he said. “It can become an act of war.”
Buffett’s commentary came as markets face volatility, largely driven by uncertainty surrounding President Donald Trump’s aggressive trade policies. Nonetheless, he downplayed recent swings.
Berkshire’s quarterly report warned that tariffs pose a threat to its business outlook. The company stated: “Changes in macroeconomic conditions and geopolitical events, including changes in international trade policies and tariffs, may negatively affect our operating results and the value of our investments in equity securities and operating businesses.” Berkshire’s operating earnings declined by 14% in the first quarter.
Berkshire’s cash reserves now total around $347 billion, up from $334.2 billion at the end of 2024.
Buffett said the firm will invest the cash when the right opportunities arise but warned against haste. “It’s very unlikely to happen tomorrow. It’s not unlikely to happen in five years,” he said. “We’ve made a lot of money by not being fully invested at all times.”
He stressed the importance of avoiding rushed decisions: “If you told me we had to invest $50 billion a year until we were down to $50 billion, that would be the dumbest thing in the world.”
At the meeting’s outset, Buffett gave a rare tribute to Apple CEO Tim Cook. “Tim Cook has made Berkshire more money than I’ve ever made Berkshire Hathaway,” Buffett said, prompting laughter and applause.
Though Berkshire reduced its Apple stake by almost 50% in mid-2024 — from 790 million to 400 million shares — Apple remains Berkshire’s most valuable equity holding, worth nearly $70 billion as of September 2024.
“Nobody but Steve (Jobs) could have created Apple, but nobody but Tim could have developed it like this,” Buffett said.
There had long been speculation about Greg Abel’s succession. The 62-year-old Canadian, is currently chairman and CEO of Berkshire Hathaway Energy and vice-chairman of non-insurance operations.
Unlike most shareholder meetings, Berkshire Hathaway’s gathering is a festive, interactive event. Buffett’s public appearances are met with the fervour usually reserved for celebrities. Attendees often describe the experience as more pilgrimage than business.
Berkshire’s empire spans everything from insurance and energy to railroads, retail and fast food – a microcosm of the American economy. But Buffett has acknowledged that its sheer size will make it harder to generate the eye-popping returns of the past.
Still, for many investors, Buffett remains far more than a money manager. He is a sage, a mentor — the Oracle of Omaha.
