The board of Berkshire Hathaway has formally approved Vice Chairman Greg Abel as the company’s next chief executive officer.
The transition will take effect at the start of 2026, with Warren E. Buffett, 94, continuing in his long-held role as chairman of the board.
The board’s unanimous decision, announced late Sunday, positions Abel, 62, to oversee the vast and varied operations of the $860 billion conglomerate, which spans industries from railroads and energy to insurance and consumer goods.
Buffett, who has led the company since 1965 and transformed it into one of the most successful and widely followed enterprises in the world, will relinquish day-to-day management but remain actively involved in major strategic decisions.
The move represents a careful balancing act, designed to reassure investors amid growing economic headwinds, including volatile markets, global trade tensions, and signs of a potential U.S. recession. It also provides a measure of continuity for a company that has long been seen as a reflection of Buffett’s investing philosophy and discipline.
What they said
“The board believes this arrangement best preserves the unique culture of Berkshire Hathaway while positioning the company for continued success,” the company said in a statement. Buffett himself had hinted in recent months that he intended to hand over operational control while staying involved in higher-level decision-making.
Shares of Berkshire Hathaway’s Class B stock fell nearly 6% at the open on Monday following Friday’s record high, as investors digested the long-awaited leadership change.
Abel, who joined Berkshire in 2000 through the acquisition of MidAmerican Energy (now Berkshire Hathaway Energy), has served as vice chairman since 2018 and is widely regarded as Buffett’s closest operational confidant. He has long overseen Berkshire’s sprawling non-insurance businesses, a role that prepared him for this transition. Notably, Buffett has repeatedly praised Abel’s managerial acumen and commitment to the company’s decentralized structure.
What to know
The decision also diverges slightly from previous succession plans. For years, Buffett had said that his son Howard, would become non-executive chairman upon his death to act as a “guardian of the culture.” Sunday’s announcement keeps Buffett himself in that role at least for now while delegating operational control to Abel.
Still looming is the question of how Berkshire will deploy its immense cash reserves, which stood at $348 billion at last count. Buffett said at the company’s annual meeting over the weekend that opportunities remain scarce, but expressed confidence that “eventually we’ll be bombarded with opportunities.”
As Berkshire Hathaway enters a new chapter, the company now faces the challenge of proving that its future can match its storied past without its legendary founder at the helm.
