Warren Buffet’s Resignation
94-year-old Warren Buffett announced his withdrawal as CEO of Berkshire Hathaway by the end of the year at the shareholders’ meeting on May 3, 2025. His designated successor, Greg Abel, previously responsible for the non-insurance-related businesses of the conglomerate, is set to take over the leadership. Buffett’s decision marks the end of an era: Since the 1960s, he has transformed Berkshire from a textile company into one of the world’s most valuable holding companies.
Key Aspects of the Transition
- Timeline: The transition is scheduled for late 2025, with Buffett remaining in an advisory role.
- Strategy Continuity: Buffett emphasized that Berkshire’s principles – a long-term value approach, quality focus, and capital discipline – remain unchanged.
- Succession Planning: Greg Abel has been seen as the heir apparent for years and has already taken on operational responsibilities in key areas such as energy and industrial companies.
Possible Impacts on Markets and Investors
- Corporate Strategy: Abel may expand Berkshire’s technology investments, while traditional cash cows like insurance are likely to remain stable.
- Capital Allocation: Discipline in major deals will be the litmus test for Abel’s leadership capabilities.
- Shareholder Confidence: Short-term volatility is possible, but Buffett’s clear exit planning since 2018 mitigates transitional risks.
Historical Context
Buffett’s legacy includes an average annual return of ~20% since 1965 – nearly double that of the S&P 500 over the same period. His maxim “Never buy anything just because it goes up” remains a central part of the corporate culture.
The complete transition will first show whether Berkshire’s unique governance model can function without the founding figure. For value investors, it remains crucial: the philosophy of “ever-holding” strong brands with pricing power seems to be embedded in the company’s gene pool.