Berkshire Hathaway's chairman position will continue to be held by Warren Buffett.
Rewritten Article:
Greg Abel, the current vice-president overseeing Berkshire Hathaway's non-insurance operations, has been unanimously voted by the board to become the CEO starting January 1, 2026. Warren Buffett, the company's founder and chairman, will remain in his role.
In a surprise announcement at the shareholder meeting on May 3, 2025, Buffett, 94, revealed his intention to relinquish the CEO position by the end of 2025, naming Abel as his successor. Although this move has long been anticipated, it still took many stakeholders, including Abel himself, by surprise, according to Bloomberg.
Abel, 62, has an impressive background in the energy sector. Prior to joining Berkshire, he led CalEnergy and MidAmerican Energy Holdings, ascending through the ranks to oversee Berkshire Hathaway Energy, the energy business holding, for a decade. His extensive experience in energy and operational leadership will play a crucial role in Berkshire's evolution.
With Abel at the helm, investors are eager to see how he will adjust Berkshire's management and if he will deliver a different approach to risk tolerance or industrial preferences. There's also debate about whether Berkshire will maintain its reputation as a leading player in large investments and reputational support.
Established in 1839 as a textile mill in Massachusetts, Berkshire Hathaway has undergone a remarkable transformation since changing its name in the mid-20th century. Buffett became the company's largest shareholder in 1962 and took control in 1965. His leadership has propelled Berkshire into an investment powerhouse that now boasts nearly 400,000 employees across various sectors, including insurance, manufacturing, technology, railroads, and more.
Under Buffett's guidance, Berkshire's stock performance has skyrocketed, with its market capitalization surpassing $1 trillion in August 2024. Despite cooling down slightly since then, it remains one of the most valuable non-tech companies globally.
As of May 5, 2025, Warren Buffet ranks fifth on our Real-Time Billionaires list, with a net worth of $168.2 billion. In addition, Berkshire Hathaway's net income in the first quarter of 2025 decreased by 63.8% to $4.6 billion, but its cash reserves hit a record high of $347.7 billion.
With a focus on operational excellence, disciplined management, and strategic growth, particularly in sustainable energy and infrastructure, Greg Abel is expected to guide Berkshire Hathaway through its next phase with a steady yet refreshing hand. The company may see a blend of continuity with the trademark decentralized management philosophy, while also adopting a modernized approach that reflects Abel's expertise. Warren Buffett's continued presence as chairman will undoubtedly provide a stabilizing influence during this period of transition.
- As the newly appointed CEO of Berkshire Hathaway, starting January 1, 2026, Greg Abel will oversee the company's financial investments, a role that requires new strategies and approaches in business and finance.
- With Greg Abel poised to lead Berkshire Hathaway, investors anticipate seeing new business ventures, particularly in sustainable energy and infrastructure, as he brings his extensive experience in operational leadership and the energy sector to the table.
