Warren Buffett formally stepped down as CEO of Berkshire Hathaway on Thursday, handing the reins of the multinational conglomerate to his hand-picked successor, Greg Abel.
Abel, 63, is taking the helm of Berkshire after Buffett, 95, spent six a long time reworking a struggling textile producer into one of many world’s most profitable firms. As the brand new CEO, Abel will probably be tasked with upholding Berkshire’s decentralized mannequin — one of many firm’s hallmarks — whereas guiding it into a brand new period of progress.
Lately, that progress has slowed as the corporate has ballooned in dimension, making it tougher to search out massive, significant acquisition targets.
Buffett tapped Abel as his successor in Might, saying on the time that he deliberate to step down as CEO. The transfer stunned many buyers, because it was broadly assumed Abel wouldn’t take over till after Buffett’s loss of life. Whereas Buffett will not run the corporate, he’ll stay chairman and proceed coming into the workplace 5 days every week, giving Abel common entry to his longtime mentor.
Here is what to find out about Abel, the brand new chief of Berkshire Hathaway, and the way his management method may differ from Buffett’s.
Who’s Greg Abel?
Abel, a former newbie hockey participant and avid golfer, joined Berkshire in 2000 after serving as CEO of MidAmerican, an Iowa-based utility firm. As soon as at Berkshire, he helped rework the just lately acquired MidAmerican into Berkshire Hathaway Power, the most important producer of wind vitality within the nation.
Earlier than taking over his new function as CEO, the Canadian govt served as vice chairman of Berkshire Hathaway and oversaw Berkshire’s non-insurance firms.
What has Buffett stated about Abel?
Buffett has repeatedly expressed confidence in Abel’s potential to guide Berkshire’s operations, most just lately throughout a CNBC interview, which partially aired on Friday.
Buffet stated Abel would be the “decider,” including that he “cannot think about how far more [Abel] can get completed in every week than I can in a month.”
“I would somewhat have Greg dealing with my cash than any of the highest funding advisors or any of the highest CEOs in america,” he instructed CNBC’s “Squawk Field.”
Buffett additionally reiterated his perception in Abel’s management in the course of the closing letter he penned to shareholders in November 2025.
“Greg Abel has greater than met the excessive expectations I had for him after I first thought he needs to be Berkshire’s subsequent CEO,” he wrote. “He understands a lot of our companies and personnel much better than I now do, and he’s a really quick learner about issues many CEOs do not even contemplate.”
What kind of adjustments would possibly Abel make?
CFRA Analysis analyst Cathy Seifert stated it could be pure for Abel to make some adjustments in the way in which Berkshire is run. Taking a extra conventional method to management with practically 400,000 workers unfold throughout dozens of subsidiaries makes loads of sense, she stated.
The brand new CEO has already introduced some management adjustments, together with the appointment of NetJets CEO Adam Johnson as supervisor of all of Berkshire’s shopper, service and retail companies.
He may also ultimately face extra strain to start out paying a dividend. Traditionally, Berkshire has favored reinvesting income over making quarterly or annual payouts to shareholders.
Whereas Abel is considered as extra hands-on than Buffett, consultants say he isn’t anticipated to provoke any main shake-ups on the decades-old firm. He is exhibited a dedication to Berkshire’s decentralized construction, which provides acquired firms a big diploma of autonomy to run their operations.
