Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, announced on Saturday at the company’s annual shareholder meeting that he will step down at the end of this year. He officially recommended Greg Abel, the 62-year-old CEO of Berkshire Hathaway Energy, as his successor.
Details of the Succession Plan
The board of directors has approved the plan, with Abel set to take over as CEO of Berkshire Hathaway in 2026. Buffett will remain with the company as executive chairman. Abel has been a 25-year veteran of Berkshire Hathaway, and Buffett had already named him as the next in line in 2021. “If something were to happen to me tonight, it would be Greg who’d take over tomorrow morning,” Buffett said in 2021.
Greg Abel’s Journey to Berkshire Hathaway
Unlike Buffett, who started investing at the age of 11, Abel did not have an early start in business. Born in Edmonton, Alberta, Abel’s professional career began with consulting firm PricewaterhouseCoopers before he joined CalEnergy in 1992. In 1998, CalEnergy acquired MidAmerican Energy Holdings (later renamed Berkshire Hathaway Energy), where Abel became president.
In 2000, the acquisition took MidAmerican private, with Buffett and Abel leading the charge. Abel later became the CEO of Berkshire Hathaway Energy, which is now a major part of Berkshire’s non-insurance operations. Abel was added to Berkshire’s board in 2018 and has been involved in leading the company’s non-insurance operations ever since.
Abel’s Leadership Style
During the annual shareholder meeting’s Q&A session, Abel described his leadership style as “more active,” and emphasized the importance of managing Berkshire Hathaway’s subsidiaries with integrity. Buffett himself praised Abel’s ability to make tough decisions and act decisively when needed.
Charlie Munger, Berkshire’s former vice-chairman, has been equally complimentary of Abel, calling him “sensational at being a business leader” and praising his ability to manage people and get things done effectively.
Endorsement from Berkshire’s Board
Abel’s approval as Buffett’s successor has been supported by Berkshire’s board members. Ron Olson, a long-time member of the board, expressed confidence in Abel’s readiness to take over. “Greg is ready. I have no doubt about it. We’ve known it for a long time,” he said.
Public Support for Abel
Following the announcement, Tim Cook, CEO of Apple, praised Buffett’s leadership and expressed confidence in Abel’s ability to carry on Berkshire’s legacy. Cook posted, “Warren is leaving Berkshire in great hands with Greg.”
