Legendary investor Warren Buffett has announced that he will be stepping down from his role as Chief Executive at Berkshire Hathaway.
The 94-year-old had been speaking at the company’s annual shareholder meeting in Omaha, Nebraska, when he made the announcement.
Buffett, commonly referred to as The Oracle of Omaha, was given a standing ovation by the thousands who had gathered at the meet after making the announcement.
He said he will recommend to Berkshire Hathaway’s board that Greg Abel become CEO at the end of the year.
‘I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end’, he told the gathering.
His announcement was a complete shock, he said that only those who knew were his two children, Howard and Susie Buffett, who sit on the board.
Abel, who was sitting beside Buffett on the stage, had no warning to the announcement.
He said he will recommend to Berkshire Hathaway’s board that Greg Abel become CEO at the end of the year
He said he will recommend to Berkshire Hathaway’s board that Greg Abel, seen here on Friday, become CEO at the end of the year
Buffett has routinely said that he had no plans to retire. After changing his tune on Saturday, he added he would still be ‘hang around’ to help, but the final say would be with Abel.
Buffett and Abel told CNBC after the meeting that they would discuss on Sunday what his formal role at the firm would be. He is currently the CEO and chairman of the conglomerate.
Many investors have said they believe Abel will do a good job running Berkshire, but it remains to be seen how good he will be at investing Berkshire’s cash.
Buffett also endorsed him Saturday by pledging to keep his fortune invested in the company.
He added: ‘I have no intention – zero – of selling one share of Berkshire Hathaway. I will give it away eventually.
‘The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.’
Abel has been Buffett’s designated successor for years, and he already manages all of Berkshire’s noninsurance businesses.
But it was always assumed he wouldn’t take over until after Buffett’s death.
Buffett, a father of three, is one of the richest men in the world with a personal fortune estimated at around $168 billion, according to Forbes.
Despite his huge wealth, he has always said that he would not be leaving his large fortune to his children, but instead will give away 99 percent of the money.
Buffett poses for a portrait in Omaha, Nebraska, circa 1984
Buffett and Abel told CNBC after the meeting that they would discuss on Sunday what his formal role at the firm would be
Buffett is seen here alongside his kids, from left to right, Howard, Susie and Peter at the annual meeting in 2011
He had previously said: ‘I’ve never wished to create a dynasty or pursue any plan that extended beyond the children.
‘I know the three well and trust them completely. Future generations are another matter.
‘Who can foresee the priorities, intelligence and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?’
This is a breaking news story.
