End of an Era: Who Will Take Over Berkshire Hathaway

Berkshire Hathaway shares declined in pre-market trading on Monday after legendary investor Warren Buffett announced he would step down as CEO of the $1.16 trillion conglomerate, passing leadership to Vice Chairman Greg Abel. Buffett, who has led the company for over 60 years, will step down at the end of 2025 but remain as Chairman of the Board. The decision was unanimously approved by the board of directors.

The news, revealed unexpectedly during the company’s annual meeting in Omaha, led to a 2.8% drop in Berkshire shares before Monday’s session. Investors are now questioning how the company’s assets — including 189 operating businesses, $264 billion in equities, and nearly $348 billion in cash — will perform without Buffett, whose investment style has been deeply tied to the firm’s identity.

Greg Abel, born in Canada, has been with the group since 1992 and has overseen most of Berkshire’s businesses since 2018. Over the past year, he has also taken on some capital allocation duties and has stated that he will continue following an “identical philosophy,” a stance analysts believe should help calm markets.

Institutions like Geico and General Re will continue reporting to Vice Chairman Ajit Jain. While the transition may not directly impact the company’s operations, investor perception of Berkshire could shift due to the symbolic weight of Buffett’s departure.