Berkshire Hathaway Shares Decline Following Warren Buffett's Retirement Announcement
Warren Buffett to step down as CEO in late 2025, handing leadership to Vice President Greg Abel, leading to a 2.8% drop in company shares.
Shares of Berkshire Hathaway, the American holding conglomerate, declined by 2.8% following an announcement by Warren Buffett that he would step down as CEO at the end of 2025 after 60 years in the role.
He will pass the leadership to Vice President Greg Abel, who is acknowledged as his successor.
Buffett, at the age of 94, stated that he does not plan to sell any shares in Berkshire Hathaway and will remain involved with the company, although he noted that 'the last word will be Greg's.'
Buffett's decision marks the end of an era at Berkshire Hathaway, a company that has seen remarkable growth under his leadership.
Since his acquisition of the company in 1965, Berkshire Hathaway has reported an average annual return of 19.9%, nearly double that of the S&P 500 index over the same period.
This performance indicates that an investment of $10,000 made in 1965 would be worth more than $500 million today.
The business community has reacted positively to Buffett's announcement.
Notable figures such as Bill Gates, Tim Cook, and Jamie Dimon have praised Buffett's decision and expressed confidence in Abel as the future leader of the conglomerate.
Greg Abel, a 62-year-old Canadian, joined Berkshire Hathaway in 2000 and has since advanced to the role of Vice President.
He has been recognized as a key candidate for succession since 2021. Buffett has repeatedly emphasized that Abel understands capital allocation as well as he does, reinforcing the trust placed in his successor.
He will pass the leadership to Vice President Greg Abel, who is acknowledged as his successor.
Buffett, at the age of 94, stated that he does not plan to sell any shares in Berkshire Hathaway and will remain involved with the company, although he noted that 'the last word will be Greg's.'
Buffett's decision marks the end of an era at Berkshire Hathaway, a company that has seen remarkable growth under his leadership.
Since his acquisition of the company in 1965, Berkshire Hathaway has reported an average annual return of 19.9%, nearly double that of the S&P 500 index over the same period.
This performance indicates that an investment of $10,000 made in 1965 would be worth more than $500 million today.
The business community has reacted positively to Buffett's announcement.
Notable figures such as Bill Gates, Tim Cook, and Jamie Dimon have praised Buffett's decision and expressed confidence in Abel as the future leader of the conglomerate.
Greg Abel, a 62-year-old Canadian, joined Berkshire Hathaway in 2000 and has since advanced to the role of Vice President.
He has been recognized as a key candidate for succession since 2021. Buffett has repeatedly emphasized that Abel understands capital allocation as well as he does, reinforcing the trust placed in his successor.
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