Warren Buffett is ready to step down as the CEO of multinational conglomerate Berkshire Hathaway. Buffet announced his decision while speaking at the company’s annual shareholder meeting on Saturday.
Buffet said that the only Berkshire board members who were informed about the decision were his children, Susie and Howard. He added that he expects Greg Abel, vice-chairman of the company’s non-insurance operations, to succeed him in the role.
“I think the time has arrived where Greg should become the chief executive officer of the company at year-end,” said Buffett.
Greg Abel joined Berkshire Hathaway in 1999 when the company bought MidAmerican Energy, where he served as president. He became MidAmerican’s CEO in 2008, serving in the position for a decade before transitioning to Vice Chairman of Non-Insurance Businesses role and assuming a seat on Berkshire’s board of directors.
Buffett added that he intends to remain involved in the company in some capacity and won’t sell any of his Berkshire shares.
“I would still hang around and could conceivably be useful in a few cases. But the final word would be Greg’s,” Buffett shared. “… I would add this, the decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”
Buffett acquired Berkshire Hathaway, which was originally a textile manufacturer, in 1965 and became its CEO in 1970. He quickly transformed it into a conglomerate and positioned it as one of the most powerful companies in the world thanks to smart and timely investments. Today, Berkshire Hathaway’s Class A stock is worth $809,350 per share. Class B shares trade at $539.80 per share.