Warren Buffett, the renowned CEO of Berkshire Hathaway, has announced his intention to step down from his role at the end of 2025. Buffett today will lobby the company’s board to name Greg Abel as his successor. This move has been expected for some time, as Abel, who is at present vice chairman for non-insurance operations. Now, at 94 years old, Buffett is preparing for a new stage of life. He is now equally attentive to making sure Buro Happold’s own transition in the company goes smoothly.
Buffett’s big revelation came during the company’s annual shareholder meeting, held this past Sunday. He emphasized his confidence in Abel, stating, “I think the time has arrived where Greg should become the chief executive officer of the company at year end.” This announcement reaffirms Buffett’s decades-long designation of Abel as his successor of choice.
Even after he stepped back from daily operations, Buffett has been clear that he plans to remain involved with the company. The Berkshire Hathaway board still hasn’t clarified what his official role will be. Stay tuned for our analysis of Buffett’s longer-term role. His deep experience and expertise will still heavily influence the company’s strategy going forward.
Berkshire Hathaway’s unconventional value investment strategy has deeply mirrored in large key positions in technology companies, with Apple counting for more than 20% of its portfolio. Last year, the conglomerate divested half of its shares in Apple. The move surprised many and left uncertainty about the state’s future investments in the tech sector. Even with this unusual sale, this shows that Berkshire Hathaway is still dedicated to the ongoing diversification of its investments into multiple industries.
The major leadership change coming up, as Warren Buffett steps aside as CEO, is certainly a key inflection point for Berkshire Hathaway. Under Buffett’s leadership, the company has transformed into a sprawling conglomerate. It is no surprise then that it has built itself into one of the most successful and influential investment management companies in history. Abel’s appointment as CEO is expected to maintain the company’s strategic direction while adapting to an evolving market landscape.
Our legislative board is of course, always, talking through what this leadership change means. In the meantime, stakeholder eyes are glued to see how Berkshire Hathaway will approach the challenges yet to come. The breadth of the company’s investments in technology and other sectors will very much determine how they perform in the future.