Billionaire Warren Buffett, on Saturday (May 3, 2025), shocked an arena filled with shareholders and announced that he would retire at the end of the year, bringing the curtain to six-decades, which made him the most influential investor in the world.
Mr. Buffett said that on Sunday (May 4, 2025), he would advise the board of Berkshire Hathaway that Vice Chairman Greg Abel should replace him.
“I think the time has come where Greg should become the Chief Executive Officer of the company at the end of the year,” said Mr. Buffett.
Mr. Abel has been the nominated successor of Mr. Buffett for years, and he already manages all non -business businesses of Berkshire. But it was always believed that he would not take up after the death of Shri Buffett. Earlier 94 -year -old Mr. Buffett always said that he had no plans to retire.
Mr. Buffett announced the news at the end of the five -hour question and the answer period without raising any questions about it. He said that only the members of the board who knew that they were their two children Howard and Susie Buffett. There was no warning to Mr. Abel, who was sitting next to Buffett on the stage.
Mr. Ebel returned after an hour without Mr. Buffett to operate the company’s formal trade meeting, and he responded to the news.
“I just want to say that I cannot be more humble and honored to be a part of Berkshire, as we move forward,” said Mr. Abel.
Many investors have said that they believe that Mr. Abel will do a good job to run Berkshire, but it remains to be seen how good it would be in investing Berkshire’s cash. On Saturday (May 3, 2025), Mr. Buffett pledged and supported him to keep his luck in the company.
“I have no intention – zero – to sell a part of Berkshire Hathway. I will eventually remove it,” said Mr. Buffett. “The decision to keep every share is an economic decision as I think Berkshire’s possibilities will be better under the management of Greg.”
Thousands of investors at Omaha Arena gave Mr. Buffett to stand for a long time after his announcement after his 60 years of recognition.
During that period, Berkshire almost doubled the return of S&P 500, with an annual growth rate of 19.9% with 10.4% profit of the index.
Mr. Buffett had dedicated so that the market would move forward when his investment was revealed as so many people copied him.
CFRA research analyst Kathy Safart said it should be difficult to decide to step into Mr. Buffett.
“It was probably a very difficult decision for him, but better to leave on his terms,” said Ms. Cifrt. “I think there will be an attempt to maintain the business in Berkshire like a ‘normal’ environment. It is still to be determined.”
In many cases, Mr. Abel has already been running most of the company for years. But he is not managing Berkshire’s insurance operations or is deciding where to invest all his cash. He will now take those tasks, but vice -president Ajit Jain will remain to help the insurance companies to take care of.
Omar Malik, the investment manager of the Hossing Partners in London, said before the announcement of Buffett that he was not worried about Berkshire’s future under Sri Abel.
Regarding Mr. Abel, Mr. Malik said, “Not really not worried). He was so long with Warren and had a chance to know businesses.” “The question is whether he will dynamically allocate capital as Warren? And there is no answer. But I think he will do a good job with the support of others.”
Coal Smad of Smad Capital Management said that he was not surprised that Mr. Buffett was leaving the post after watching on Saturday (May 3, 2025) as 94 years were not fast as previous years. At one point, he made a basic mathematics mistake in one of his answers. At other points, he got away from the track, telling stories about Berkshire and his investment, without answering the question asked for him.
Mr. Abel is well considered by Berkshire’s managers and Mr. Buffett has praised his business over the years. But he will have a difficult time to match the mythological performance of Mr. Buffett, and since he does not control 30% of the stock of Berkshire as Mr. Buffett, he will not have that much.
“I think that challenge is that if anyone is going to give him a card with Buffet or (former Vice President Charlie) Munger, there is no chance in the name of God,” said Mr. Smad. Mr. Buffett always enjoyed a dedicated among the shareholders.
Mr. Buffett has said that Mr. Abel can also be more hands-on managers and exit more than Berkshire’s companies. The managers within the company say that they have to be well prepared before talking to Mr. Abel because they know that they will ask difficult questions.
Chairman of Czech Capital Management Steven Check said that he never thought he would see Mr. Buffett retiring.
“I didn’t think he would retire, while his brain is still working so well, nor do I think it would be in the annual meeting,” said Mr. Check. “But overall I am very happy for him.”
Earlier on Saturday (May 3, 2025), Mr. Buffett had warned of serious global consequences from President Donald Trump’s tariff, while thousands of investors gathered in his annual meeting were told that “business should not be a weapon” but “There is no question that business may be war.”
Mr. Buffett said that Mr. Trump’s trade policies have risked global instability by annoying the rest of the world.
“This is a big mistake in my view when you have 7.5 billion people who do not like you very well, and you have 300 million who say about how they have done,” Mr. Buffett said that he addressed the topic on everyone’s mind at the beginning of the meeting of Berkshire Hathaway shareholders.
While Mr. Buffett said that it is best to balance among countries for business, he does not think that Mr. Trump is going correctly with his broad tariff. He said that if more countries are rich then the world will be safe.
Mr. Buffett said that he does not see only several attractive value investments that he understands these days, so Berkshire is sitting in $ 347.7 billion cash, but he predicted that one day Berkshire would “bomb the opportunities that we will be happy that we have cash.”
Mr. Buffett said that after Trump’s tariff announcement last month, the recent turmoil in the markets made in the headlines “is not really nothing.” He rejected the recent drop as relatively small. He quoted when Dow Jones Industrial Average moved from 240 to 240, the day he was born in the markets to 41 as a really significant decline in the markets during Great Depression in 41 in 1930. Currently Dow Jones Industrial Average sits on 41,317.43.
“This is a dramatic bear market or nothing,” he said.
Mr. Buffett said that he has not bought any shares of Berkshire back this year, as they either do not bargain.
Investor Chris Bloomstran, who is the president of the Cumper Augustus Investments Group, told the Gably Investment Conference on Friday (May 2, 2025) that a financial crisis could be the best thing for Berkshire as it would create opportunities to invest at attractive prices.
“Berkshire needs a crisis. I mean Berkshire thrives in crisis,” said Mr. Bloomstran.
The meeting attracts some 40,000 people every year who wants to hear from Mr. Buffett, including some celebrities and famous investors. This year, Hillary Roadm Clinton also participated. Ms. Clinton was the last candidate Mr. Buffett, as she has away from politics and any controversial subject in recent years for fear of hurting Berkshire’s businesses.
An investor also camped outside the arena overnight.
72 -year -old Devan Bisher said that he had faith in Berkshire’s future and has not planned to sell stock purchased in the 1980s.
“This is a good train to ride,” Bisher said, “and I am going to live with it.”
Published – May 04, 2025 12:49 pm IST
