Warren Buffett Plans to Step Down from Berkshire Hathaway This Year

WASHINGTON: Famed billionaire investor Warren Buffett has announced his plans to step down from his role as the leader of Berkshire Hathaway by the end of the year. He has recommended Greg Abel as his successor to take on the role of chief executive officer.

Buffett’s remarkable success and his knack for conveying his insights in easily understood statements have made him a significant figure in both business and financial circles, earning him the title “The Oracle of Omaha.”

In a previous interview with CNBC, Buffett indicated that he considered the 62-year-old Abel his preferred choice for the position of CEO.

“The time has come for Greg to take the reins as the chief executive officer of the company by year’s end,” Buffett, now 94, stated at an annual shareholder meeting in Omaha, the Midwestern city where Berkshire Hathaway is headquartered.

Buffett expressed confidence that the board of directors would “unanimously support” his choice.

“I may still hang around and could potentially be helpful in certain scenarios, but the final decisions would rest with Greg regarding operations, capital deployment, and other matters,” he added.

Buffett transformed Berkshire Hathaway from a modest textile manufacturer when he acquired it in the 1960s into a colossal conglomerate, currently valued at over $1 trillion with liquid assets reaching $300 billion.

The company reported a first-quarter profit of $9.6 billion on Saturday, a decline of 14 percent, which equates to $4.47 per share, also down significantly.

As of Saturday, Buffett’s net worth stood at $168.2 billion, according to Forbes’ real-time billionaire ranking.

“I have absolutely no plans—none at all—to sell any shares of Berkshire Hathaway. I intend to give them away eventually,” Buffett declared, prompting a standing ovation from shareholders.

“My decision to retain all shares is purely economic because I believe Berkshire’s prospects will be brighter under Greg’s leadership than mine.”

Abel, a long-standing integral member of Berkshire, joined the company’s energy division in 1992 and has served on the board of directors since 2018.

“That’s the exciting news for today,” Buffett quipped.

Trade “Should Not Be Used as a Weapon”

Earlier, Buffett used the platform to assert that “trade should not be weaponized,” in clear reference to the aggressive tariffs imposed by U.S. President Donald Trump on various nations.

“Trade can indeed be an act of war,” he remarked, omitting Trump’s name, yet making his point clear.

His remarks come amidst growing concerns among analysts in the U.S. and worldwide that tariffs could significantly hinder global economic growth.

Just two months ago, Buffett stated in a CBS interview that tariffs “are effectively a tax on goods” — a far cry from being a relatively painless way to raise revenue, as suggested by Trump — adding, “The Tooth Fairy isn’t the one footing the bill!”

On Saturday, Buffett urged Washington to maintain trade relations with the global community, stating, “We should excel in what we do best, and let others excel in what they do best. That’s how it all began.”

He emphasized that achieving prosperity isn’t a zero-sum game where one country’s gain equates to another’s loss; both can thrive.

“I truly believe that as the rest of the world prospers, it won’t be at our cost. Instead, we will thrive and feel more secure,” Buffett noted.

He warned against the dangers of a country offending others while claiming superiority.

“It would be a grave error when you have 7.5 billion people who don’t have a favorable view of you, and you possess 300 million who are bragging about their successes,” Buffett explained to shareholders.

In light of that dynamic, he remarked that the recent fluctuations in financial markets are “really trivial.”