The board of Berkshire Hathaway has unanimously voted for Greg Abel to become the company's president and chief executive officer (CEO) effective January 1, 2026. Warren Buffett, who recently announced his retirement, will continue to serve as chairman of the board, as stated by the company.

Buffett surprised shareholders, including Abel, during the recent annual meeting when he disclosed plans to request the board's approval for Abel to succeed him as CEO by the end of the year.

The current vice president of Berkshire's non-insurance operations, Abel, aged 62, will take on the role that Buffett has held for over six decades.

While Buffett did not clearly state whether he would step down as chairman, he emphasized his intention to remain available to assist Abel where necessary.

He confirmed that once the transition is complete, Abel will be responsible for final decisions regarding the company's operations and capital allocation.

Buffett's continuing role as chairman may provide reassurance to shareholders, particularly in light of potential market uncertainties.

The conglomerate, which Buffett transformed since taking the helm in 1965, currently holds over $347 billion in cash reserves.

Buffett indicated, "I can be of help, I believe, in certain aspects if there comes a period of great opportunities or something similar."

Despite a negative response from the stock market, reactions within the business community following Buffett's retirement announcement were predominantly positive.

Prominent figures such as Bill Gates, Tim Cook, and Jamie Dimon expressed their admiration for Buffett's decision and voiced confidence in Abel as the future leader.

Following the announcement of Buffett's impending retirement, shares of Berkshire Hathaway dropped by 2.8%.

The decline coincided with the release of the company's quarterly financial results, which were seen as somewhat disappointing.

The operational earnings for Class A shares stood at $6,694.59, falling 5% short of analysts' consensus expectations.

Berkshire also highlighted uncertainties related to potential tariffs and their implications for business prospects.

Buffett's net worth has decreased by $9.4 billion, now estimated at $158.8 billion, marking him as the largest daily loser in terms of net wealth.

He remains the fifth richest person globally.

Under Buffett's leadership, Berkshire Hathaway has witnessed significant growth, posting an average annual return of 19.9% from 1965 to the present—almost double that of the S&P 500 index.

An investment of $10,000 in 1965 would now be valued at over $500 million.

Warren Buffett has transformed Berkshire Hathaway from a struggling textile manufacturer into a $1.16 trillion investment giant.

Greg Abel, who joined Berkshire Hathaway in 2000, has risen through the ranks to the role of vice president and was recognized as a key successor candidate as early as 2021. Buffett has consistently noted that Abel understands capital allocation as well as he does, further solidifying his confidence in his successor.