- Berkshire Hathaway CEO Warren Buffett Annached participants of the annual shareholder seat of the conglomerate on Saturday when he said that his executive successor Greg Abel was to take over the top position by the end of the year.
Warren Buffett said on Saturday that his anhalt successor, Greg Abel, Should take over the CEO of Berkshire Hathaway in the year of the year.
During the annual meeting of the conglomerate, he fascinated the audience of the shareholders when he said that he would amazed the recommendation to the board of directors on Sunday at the shareholders’ meeting.
“It is time when Greg should become the company at the end of the year at the end of the year, and I would like to effectively execute it on the directors and give this as my recommendation,” said Buffett, 94,.
After making his proposal to the board on Sunday, the directors will meet again in a few months and take measures, he said.
“I think you will be unanimous, and that would mean that at the end of the year, Greg would be the Chief Executive Officer of Berkshire and I would still hold around and in some cases could possibly be useful.”
He added that the 62 -year -old Abel did not know that he would offer the bomb announcement and that the board did not do so, apart from his children, the directors Susie and Howard.
While Buffett said he was planning to be helpful, emphasized that Abel was the managing director and the final word, including operations and capital expenditure.
“I will play with an Ouija board or whatever about doing things,” joked Buffett and added that he did not sell Berkshire Hathaway shares and confirmed his plan to gradually give them away.
Berkshire Hathaway under Buffett
According to Buffett, who said that the prospects of Berkshire will be better under his successor, the sale of his shares is also his vote of trust in Abel.
After the announcement, he said: “This is the news hook for the day, thanks for coming.”
Buffett Became CEO in 1970 after his investment partnership Acquired Berkshire, then a textile business, in 1965. During that time, hey Become an iconic investor, with legions of follower who track his stock moves and investing advis, earning him the nickname “the oracle From Omaha. “
He is also the five -rich person in the world with a net value of 169 billion US dollars, according to the Bloomberg billionaires index. And the market capitalization of Berkshire is $ 1 trillion because the shares have increased, while the extensive selection of companies in the company like insurers belonged to Bahngiant BNSF and fast food chain chain queen.
From 1965 to 2024, the Berkshire Hathaway share recorded a composite annual growth rate of 20%, which exceeds the 10% pace of the S&P 500 during this period.
Buffett’s decision to withdraw, takes place after the death of his right husband and long -time business partner Charlie Munger in November 2023.
Buffett will continue to act as chairman of Berkshire until his death. Then he said his son Howard would take on the role.
Who is Greg Abel?
Abel grew up in Edmonton, Canada, where his mother was a housewife who at times doubled as a legal assistant and sold his father fire extinguisher.
“Sometimes people had jobs and sometimes not,” he recalled in an interview for the Horatio Alger Association. “But they had the opportunity to dream with their family and good friends.”
Abel completed the University of Alberta in 1984 and worked at PricewaterhouseCoopers and energy company Calenergy. In 1992 he came to Midamerican Energy, who took over Berkshire in 1999 and finally renamed Berkshire Hathaway Energy, then he became the boss in 2008.
He was then responsible for the non -insurance business of the entire conglomerate. He was confirmed as Buffett’s later successor in 2021.
In E -mail to Fortune’s Shawn Tully At the beginning of this year Buffett said: “I couldn’t feel better.
On Friday, Berkshire chief Director Sue Decker told CNBC This Abel was accepted by the board and has already taken over one Larger leadership role.
“Last year, the board, really Greg and Warren, practiced from the type of preparation for success to the actually practiced,” she said. “Greg has committed much more in decisions on capital allocation, and I know that he deserves the confidence of the board and Warren.”
She added: “We don’t even see him as a CEO in the waiting, he is currently taking over the leadership capacity.”
This story was originally on Fortune.com