94 years old legendary investor Warren Buffett — chairman of Berkshire Hathaway — has announced he will step down as CEO of the firm. His departure will happen at the end of this year (2025). The announcement came during Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska. This concludes a notable 60-year tenure that transformed the company into a global powerhouse that continues to influence economic policy making and economics in general, globally.
Meanwhile, Buffett also revealed that Greg Abel (the company’s Vice Chairman overseeing non-insurance operations) will succeed him as CEO. Abel has been with Berkshire since 1992 and has led its energy division. Interestingly, Abel was previously named as Buffett’s designated successor in 2021. However, reports suggest that he was unaware the transition would take place this year, as Buffett had only informed his children before making the public announcement.
During his address, Buffett expressed his confidence in Abel’s leadership, stating that the time had come for him to take control. He also assured shareholders that he has no plans to sell his Berkshire stock. In this meeting, Buffett addressed various other topics as well, including the company’s significant cash reserves, which have reached nearly $348 billion. Buffett attributed the increase in cash to the sale of two-thirds of Berkshire’s long-held Apple position.
At the same time, Buffett also discussed the challenges facing the company, including high stock market valuations and geopolitical conflicts, which have made attractive investment opportunities insufficient. He noted that Berkshire’s decentralized operating model and strong corporate culture would continue to be vital under Abel’s leadership. It is important to note that this shareholder meeting (attended by over 40,000 people) was the first since the passing of Charlie Munger (Buffett’s longtime business partner), who died in November 2023.
The development comes at a time when Berkshire Hathaway is encountering a significant decline in earnings and growing scrutiny over its business practices. In the first quarter of 2025, the company reported a 14% drop in operating profit, falling to $9.64 billion. The decline was largely driven by mounting insurance losses from wildfires in the Los Angeles area and unfavourable foreign exchange movements. Meanwhile, net income took an even sharper hit, dropping 64% to $4.6 billion.
Along with the financial challenges, the company has also come under fire for alleged misconduct. For example, in January 2025, the Consumer Financial Protection Bureau filed a lawsuit against Vanderbilt Mortgage and Finance (a Berkshire Hathaway subsidiary). The lawsuit alleges that the company engaged in aggressive lending practices, leading borrowers into unaffordable loans that caused financial troubles, late fees, and, in some cases, home loss and bankruptcy.
Additionally, a recent investigation highlighted environmental concerns related to Berkshire Hathaway Energy. The company is facing backlash for continuing to operate some of the most polluting coal plants, with plans to keep them running until 2049 despite climate and health concerns.
