The billionaire, known as the Oracle of Omaha, is stepping down from his Berkshire Hathaway firm. Buffett, one of the world’s richest men, is widely considered one of the greatest investors in history.
Buffett, 95, who has vowed to give away around 99 per cent of his wealth, is worth around $150 billion (Rs 13.48 lakh crore). He will be succeeded by Greg Abel, a 63-year-old Canadian businessman, certified public accountant and long-time Buffett disciple.
But who is Buffett? And what comes next for Berkshire Hathaway?
Who is Buffett?
Buffett was born on August 30, 1930, in Omaha, Nebraska.
The son of a Congressman, Buffett showed an interest in investing from an early age. He bought his first stock at the age of 11 and filed his first tax return at 13. He attended the University of Nebraska–Lincoln before enrolling at Columbia Business School, where he earned a master’s degree in economics after being rejected by Harvard.
In 1965, Buffett was a shareholder in Berkshire, then a struggling New England textile company. He agreed to sell back his shares for $11.50 (Rs 1,033) each, but management offered $11.375 (Rs 1,021) instead. Angered, Buffett decided to buy all the shares he could. He gained control of Berkshire on May 10, 1965, and began building his conglomerate. Though the textile business closed in 1985, Buffett kept the Berkshire name.
Berkshire Hathaway owns around 189 companies and holds stakes in major firms such as Apple, American Express and Coca-Cola. The company’s market value stands at roughly $1.07 trillion (Rs 96.1 lakh crore).
Between 1965 and 2024, Berkshire’s stock price outperformed the S&P 500, registering a compounded annual gain of 19.9 per cent. The S&P, meanwhile, rose around 10.4 per cent annually, including dividends.
Greg Abel (right) poses with a shareholder during the Berkshire Hathaway Inc. annual shareholders' meeting, in Omaha, Nebraska. Abel is set to take over as CEO of the trillion dollar firm.
“Be fearful when others are greedy and greedy when others are fearful,” is one of Buffett’s most famous quotes.
Buffett has been married to Astrid Menks since 2006. His first wife, Susan Thompson Buffett, died in 2004. He has three children — Susan, Howard and Peter — with Susan. Susan and Howard Buffett serve as Berkshire directors.
Buffett still lives in the Omaha, Nebraska home he bought in 1958 for $31,500 (Rs 28.3 lakh). Built in 1921, the five-bedroom, 2½-bath, 6,500-square-foot home on 0.72 acres was assessed at $1.2 million (Rs 10.78 crore) in 2025.
Buffett enjoys steaks and See’s Candies, which Berkshire owns, and has famously said that about one-quarter of his daily calories come from Coca-Cola, a longtime Berkshire investment.
Buffett’s decision to step aside has long been planned as part of a succession. In fact, it was in 2021 that the world first learned that Abel would succeed Buffett.
The octogenarian has also said he wanted to ensure a smooth leadership transition while he was still able to guide and advise his successor. His decision to step down also comes after the death of his long-time business partner and confidant Charlie Munger in 2023.
Munger, who served as Berkshire’s vice-chairman for decades, was widely viewed as Buffett’s intellectual counterweight and sounding board.
What next for Berkshire Hathaway?
Buffett will now hand the reins of the firm to Abel, who joined the company in 2000.
It is important to note that Abel headed Berkshire Hathaway Energy for years, has overseen several of Berkshire Hathaway’s non-insurance businesses and has served on the board of directors.
Buffett, in a November letter to shareholders, called Abel “a great manager, a tireless worker and an honest communicator”.
“I can’t think of a CEO, a management consultant, an academic, a member of government — you name it — that I would select over Greg to handle your savings and mine,” he added.
Some have noted that Berkshire Hathaway stock, which has traditionally outperformed the S&P 500, has lagged behind the index this year. The stock is up 11 per cent so far this year, while the S&P 500 has risen more than 17 per cent.
Berkshire Hathaway owns around 189 companies and holds stakes in major firms such as Apple, American Express and Coca-Cola. The company’s market value stands at roughly $1.07 trillion (Rs 96.1 lakh crore). Reuters
Critics also point out that while Abel has extensive operational experience, he does not have the same reputation as a capital allocator as Buffett.
Abel has already shown himself to be a more hands-on manager, while still preserving Berkshire’s culture of autonomy. He asks tough questions of business leaders and holds them accountable for performance.
Earlier this month, Abel announced leadership changes following the departure of investment manager and Geico chief Todd Combs, as well as the retirement of chief financial officer Marc Hamburg. He also appointed NetJets CEO Adam Johnson to oversee Berkshire’s consumer, service and retail businesses, creating a third major operating division.
Abel will continue to oversee the manufacturing, utility and railroad businesses.
He will also face growing pressure to consider whether Berkshire should begin paying a dividend. Historically, the company has preferred reinvesting profits rather than distributing them to shareholders.
What do experts say?
Experts point to Berkshire Hathaway’s strong fundamentals, including cash-generating businesses such as insurance operations like Geico and National Indemnity, manufacturing firms such as Iscar Metalworking, consumer brands like Dairy Queen, major utilities and one of America’s largest railroads, BNSF.
Investor Chris Ballard, managing director at Check Capital, said most of Berkshire’s businesses “can almost take care of themselves”, and he sees a bright future under Abel.
Some analysts also argue that this could be an opportunity to buy Berkshire Hathaway stock, which is currently trading at around $503 per share (Rs 45,200), as leadership transition can temporarily weigh on valuations.
Barbara Goodstein, managing partner at R360, an invitation-only investment and networking group for ultra-high-net-worth individuals, said the stock is currently trading at a “succession discount”.
Appearing on CNBC, Goodstein said the situation offers “a lot of opportunity”.
“We are strong into Berkshire Hathaway. We’ve always respected their moves,” she said. “We’re calling this a ‘succession discount’. We think the stock is trading below what it will become because everybody is waiting to see how Greg Abel performs.”
Goodstein added that the company is likely to invest more heavily in energy and defence, pointing to its cash reserves of more than $350 billion (Rs 31.45 lakh crore).
“Berkshire Hathaway is well-positioned. They’ve always been looking at the trends. And we think those are the two sectors that have lots of upside.”
One of the biggest questions now is how much further change will follow the departure of Combs and whether additional leadership shifts lie ahead. Ajit Jain, head of the insurance unit and long praised by Buffett, is now 74.
Berkshire Hathaway has around 238 million shares in Apple. File image/AP
“As a long-term shareholder, we aren’t too concerned with Todd’s departure and don’t think this is the tip of some sort of iceberg,” said Ballard. “It’s just a reminder that Warren’s pending departure is imminent and they’re preparing for a new phase — one that we’re still excited to see unfold.”
“There is a huge halo effect from Buffett,” said Lawrence Cunningham, a George Washington University law professor and author of several books on Berkshire Hathaway. “He has to convince people that Berkshire will thrive without Buffett making the final investment decisions or offering his annual guidance.”
“I don’t expect him to crack jokes or eat peanut brittle at the annual meeting,” Cunningham added. “His biggest challenge is to say: I’m not Warren Buffett — and you shouldn’t care.”
Abel is positioning trusted lieutenants and fresh talent to balance continuity with modernisation at Berkshire, said Michael Ashley Schulman, chief investment officer at Running Point Capital in California.
However, while Buffett is stepping down as chief executive, he will remain non-executive chairman, meaning Abel will continue to benefit from Buffett’s experience and counsel.
“As long as Warren Buffett is still working and still chairman, Berkshire will have his fingerprints on the business,” said Steve Check, president of Check Capital Management, which has about 30 per cent of its assets invested in Berkshire stock. It remains to be seen how Abel deploys Berkshire’s vast cash reserves and whether he will adhere strictly to Buffett’s playbook or reshape the company in his own image.
With inputs from agencies
