Influential billionaire investor Warren Buffett, 94, said Saturday he would retire from leading his Berkshire Hathaway business group by the end of the year and that he would recommend his chosen successor Greg Abel take over.
Buffett's success, coupled with his ability to explain his thinking in clear soundbites, has made him highly influential in the business and financial communities, earning him the nickname "The Oracle of Omaha."
Several years ago, Buffett had already indicated that the 62-year-old Abel would be his pick for successor in an interview with CNBC.
"The time has arrived where Greg should become the chief executive officer of the company at year end," Buffett told an annual shareholder meeting in Omaha, the Midwestern city where Berkshire Hathaway is based.
Buffett said he believed the board of directors would be "unanimously in favor of" his recommendation.
"I would still hang around and could conceivably be useful in a few cases, but the final word would be what Greg said in operations, in capital deployment, whatever it might be," he added.
Buffett transformed Berkshire Hathaway from a medium-sized textile company when he bought it in the 1960s into a giant conglomerate, now valued at more than $1 trillion and with liquid assets of $300 billion.
The company on Saturday reported first-quarter profits of $9.6 billion, down 14 percent. That works out to $4.47 per share, also down sharply.
Buffett's net worth as of Saturday was $168.2 billion, according to Forbes magazine's real-time rich list.
"I have no intention -- zero -- of selling one share of Berkshire Hathaway. I will give it away eventually," Buffett told shareholders, who responded with a standing ovation.
"The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine."
Abel, a long-time core figure of Berkshire, joined the business group in the energy division in 1992 and has been on the board of directors since 2018.
"So that's the news hook for the day," Buffett quipped.
Buffett earlier used the stage to declare that "trade should not be a weapon," in remarks clearly targeting President Donald Trump's aggressive use of tariffs against countries around the world.
"There is no question that trade can be an act of war," he said, without actually mentioning Trump by name.
Those comments came as analysts in the United States and abroad have expressed growing concern that tariffs could seriously slow global growth.
Two months ago, Buffett told a CBS interviewer that tariffs "are a tax on goods" -- and not a relatively painless revenue-raiser, as Trump has suggested -- adding, "I mean, the Tooth Fairy doesn't pay 'em!"
On Saturday Buffett urged Washington to continue trading with the rest of the world, saying, "We should do what we do best and they should do what they do best. That's what we did originally."
Achieving prosperity is not a zero-sum game, with one country's successes meaning another's losses, he said. Both can prosper.
"I do think that the more prosperous the rest of the world becomes, it won't be at our expense. The more prosperous we'll become, and the safer we'll feel," Buffett said.
He added that it can be dangerous for one country to offend the rest of the world while claiming superiority.
"It's a big mistake, in my view, when you have seven and a half billion people that don't like you very well, and you got 300 million that are crowing in some way about how well they've done," Buffett told shareholders.
Compared to that dynamic, he said, the financial markets' recent gyrations are "really nothing."
© 2025 AFP
17 Comments
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TaiwanIsNotChina
No growth opportunities left in the US, so it makes sense.
Peter Neil
Being 94-years old might have a little to do with it.
Peter Neil
The stated goal of the Trump tariffs is to bring manufacturing back to the US.
US Secretary of Commerce Lutnick said in an interview that the "new model" for Americans is factory jobs.
"This is the new model, where you work in these plants for the rest of your life, and your kids work here, and your grandkids work here."
Kiss any aspirations good-bye. Your destiny has been decided by Dear Leader. You will work in a factory and you will like it.
TaiwanIsNotChina
Right. They could never possibly automate factories...
theFu
A burger and Cherry Coke once a week is his key to a long life.
https://www.businessinsider.com/warren-buffett-bill-gates-china-burgers-fries-coke-mcdonalds-diet-2024-6?op=1
I consider myself a Nebraskan, so I understand his tastes in food - well - except McDonalds. I do like the b'fast sandwiches there, but that's about it.
People from Nebraska are practical and mostly kind. They expect to work hard, provide value to customers/clients/bosses, and to be paid fairly for the effort. He doesn't invest in businesses that he can't understand, which means he won't be pushing "crypto-coins".
Peter Neil
Of course they can automate. Then generations can move on to collecting bottles and cans for recycling - at the automated recycling centers. And there is always picking fruits and vegetables.
Peter Neil
The automation comment is best directed to Lutnick, who obviously never considered that. :)
sakurasuki
He will retire rich, compared to average Japanese unhappy salaryman that finally come to their retirement age after working day and night to a company that finally won't care anymore to them. While at the same time need struggle with rising cost of grocery prices using pension money. Living in small apartment that can easily being bothered by neighborhood noise.
HopeSpringsEternal
US Capital investment increased 22% in most recent quarter, the VERY best indicator of future growth!
Buffett is simply dealing in actuarial reality, he turns 95 soon, so day to day CEO work not appropriate, but he'll remain on the board, as Chairman etc.
His Son will also replace him on the board as Chairman, once he's gone, so the Berkshire Legacy will stay firmly in Omaha NB, not carved up by Wall Street Cockroaches
wallace
Buffett stated it's not a time to buy or sell stocks.
"His main point was that the stock market is known for wild swings, both up and down, and if you're investing for the long term (which he encourages), you should prepare for periods when your stocks are plummeting."
HopeSpringsEternal
Buffett's built-up record cash position, so likely expecting challenging times ahead and that few opportunities now exist due to pricey nature of valuations, why he stopped Berkshire's share buyback program in 1Q etc.
It's giant conglomerate, and most don't even know that there are less than 50 people at Berkshire's HQ. So, a case study in risk mgmt. and paranoia. Buffett manages just an office in downtown and very remote Omaha.
His magic, getting the investment community to trust him all these decades, master salesman, 'folksy', but hardly someone for the history books, as just business after all.
wallace
Buffett claimed the super-rich do not pay a fair share of taxes.
"The Buffett Rule is the basic principle that no household making over $1 million annually should pay a smaller share of their income in taxes than middle-class families pay. Warren Buffett has famously stated that he pays a lower tax rate than his secretary, but as this report documents, this situation is not uncommon."
HopeSpringsEternal
Self-made Buffett pay income taxes like everyone else, but once they become wealthy, the after-tax income they invest remains invested long-term, so there are no realized gains and thus no taxes.
If Buffett sells, he pays capital gains taxes on his gains, like everyone else, but his original capital derived from income he earned and paid regular income taxes on.
Naturally, Buffett has very little use for regular income now, like all very rich, who rely on capital gains. Nothing unique to Buffett or US in this regard, occurs everywhere
Buffett's unique point, lived FAR below his means and in doing so sheltered his gains = tax efficiency, which along with living a long life means it's easy to accumulate wealth. He only became a billionaire in the 1990s.
Appears physically and mentally ok, has a good chance to make 100 etc. which is very $valuable in his case!
wallace
Capital gains tax is the lower 15%-20%. compared with the income tax range of 10%-37%.
The super-rich are paying 20% instead of 37%.
HopeSpringsEternal
If people earn regular income, they pay taxes. Now if they invest their after-tax income, it's only subject to 20% taxation, IF Capital Gains are realized.
Nothing magic about above and some argue capital gains taxes should be higher, but that would of course discourage investment and thus economic growth...
Buffett very tax clever, like all rich people, no news there
HopeSpringsEternal
Buffett was largely self-made, built a business, which also has MANY tax advantages.
Real problem in society, those who don't create any business, but rather live off legacy capital given to them, so they never need a 'job'.
Buffett worked hard his whole life, so he earned it the right way = far more fulfilling, plus a strong role model
HopeSpringsEternal
Buffett made it clear he's a 'free-trader' and wants the world trading, makes the world better, safer, etc. But steered clear of 'politics' regarding tariffs and trade but understands US trade deficits not healthy or sustainable.
World has had no problem trading with US, problem's been the world's not reciprocating on trade very well in recent decades = Big Reason Trump was Elected