Warren Buffett, ranked as the sixth richest person in the world by Forbes in April, announced on Saturday that he plans to step down as CEO of Berkshire Hathaway by the end of the year. Buffett, the primary shareholder, has led the company for over 60 years.
“It’s time for Greg [Abel, previously mentioned as his successor] to become the company’s CEO at the year’s end,” the American billionaire and philanthropist stated during Berkshire Hathaway’s shareholders meeting in Omaha, Nebraska.
Greg Abel already manages much of Berkshire’s business, but investors and markets assumed he would only take over leadership after Buffett’s passing. At 94, Buffett had consistently declared he had no plans for retirement.
Buffett made the announcement following a five-hour Q&A session about the company’s activities, refraining from responding to questions about the decision.
“I have no intention—zero—of selling any shares of Berkshire Hathaway. I intend to eventually donate them,” Buffett said.
“The decision to retain all shares is based on financial grounds because I believe Berkshire’s prospects will improve under Greg’s management compared to mine,” he continued.
Thousands of investors in the Omaha arena gave Buffett a standing ovation following his announcement, acknowledging his six-decade leadership.
The only board members aware of his choice were his children, Howard and Susie Buffett. Greg Abel, seated next to Buffett on stage, had not been informed.
Warren Buffett is recognized as one of the most successful investors of all time. Forbes noted in April that he was among the wealthiest in the world, with a fortune of $154 billion (over €142 billion). His net worth rose earlier this month, moving him to fifth place in real-time rankings.
Berkshire Hathaway owns numerous companies, including insurance provider Geico, battery manufacturer Duracell, and the restaurant chain Dairy Queen.
The son of a U.S. congressman, Warren Buffett first purchased stocks at age 11 and filed taxes at 13. He has pledged to donate over 99% of his wealth, having given approximately $62 billion (more than €54 billion) by April, mainly through the Gates Foundation and his children’s foundations.
In 2010, Buffett and Bill Gates launched The Giving Pledge, promoting high-net-worth individuals worldwide to contribute a large portion of their wealth to social causes.
