The head of the Berkshire Hathaway group announced at the annual shareholders' meeting that he intends to step down as CEO, a position he has held for 60 years, by the end of the year. Buffett recommended to shareholders that his deputy Greg Abel be appointed to his position, noting that he had not informed Abel of his decision in advance. Buffett also stated that he does not intend to sell any shares of the company, almost all of which will be donated after his death.
«Warren Buffett embodies everything good about American capitalism and America itself, he invests in the development of our country and its business with integrity, optimism, and common sense», — quotes Reuters CEO of JPMorgan Chase & Co Jamie Dimon.
Abel, whom Berkshire has called Buffett's successor since 2021, may not have the same star power as Buffett, but he is expected to maintain the conglomerate's culture. The board of directors of Berkshire will meet on Sunday to discuss the transition process.
The decision to retire concludes a remarkable 60-year period during which Buffett transformed Berkshire from a struggling textile company into a $1.16 trillion conglomerate owning businesses across the U.S. economy. Berkshire now has about 200 businesses, including auto insurance Geico, railroad BNSF, industrial and chemical companies, and utilities. At the end of March, he also acquired stocks worth $264 billion, including Apple, American Express, and Bank of America.
According to Forbes magazine, Buffett's own fortune amounts to $168.2 billion, almost all of which is invested in Berkshire stock. Buffett's fortune would be much larger if he had not donated more than half of his Berkshire shares to charity since 2006.
It is expected that almost all remaining shares will go into a new charitable trust overseen by his daughter Susie and sons Howard and Peter.
Many investors view the conglomerate and Buffett's leadership as a safe haven from economic uncertainty and the trade war of U.S. President Donald Trump.
As Reuters writes, the board of directors of Berkshire may take steps to transfer power over the next few months, with Buffett himself stating that he «may be useful in some cases» after Abel takes his position.
Photo: Reuters