Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview with Liz Claman on Fox Business Network's "Countdown to the Closing Bell," May 7, 2018, in Omaha, Neb. (AP Photo/Nati Harnik, File)2025-05-03T12:55:19Z OMAHA, Neb. (AP) Revered investor Warren Buffett shocked an arena full of his shareholders Saturday by announcing that he wants to retire at the end of the year.Buffett said he will recommend to Berkshire Hathaways board Sunday that Greg Abel should 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, Buffett said.Abel has been Buffetts designated successor for years, and he already manages all of Berkshires noninsurance businesses. But it was always assumed he wouldnt take over until after Buffetts death. Previously, the 94-year-old Buffett has always said he has no plans to retire.Buffett announced the news at the end of a five-hour question and answer period and didnt take any questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett. Abel, who was sitting next to Buffett on stage, had no warning. Abel returned to the stage an hour later without Buffett to conduct the companys formal business meeting, and he responded to the news. I just want to say I couldnt be more humbled and honored to be part of Berkshire as we go forward, Abel said.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 Berkshires cash. Buffett also endorsed him Saturday by pledging to keep his fortune invested in the company. I have no intention zero of selling one share of Berkshire Hathaway. I will give it away eventually, Buffett said. The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Gregs management than mine.Thousands of investors in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company. CFRA research analyst Cathy Seifert said it had to be hard for Buffett to reach this decision to step down.This was probably a very tough decision for him, but better to leave on your own terms, Seifert said. I think there will be an effort at maintaining a business as usual environment at Berkshire. That is still to be determined.Abel expected to do wellIn many respects, Abel has already been running much of the company for years. But he hasnt been managing Berkshires insurance operations or deciding where to invest all of its cash. He will now take those tasks on, but Vice Chairman Ajit Jain will remain to help oversee the insurance companies.Investment manager Omar Malik of Hosking Partners in London said before Buffetts announcement that he wasnt worried about Berkshires future under Abel.Not really (worried). Hes had such a long time alongside Warren and a chance to know the businesses, Malik said about Abel.The question is will he allocate capital as dynamically as Warren? And the answer is no.But I think hell do a fine job with the support of the others, Malik said.Cole Smead of Smead Capital Management said he wasnt surprised Buffett is stepping down after watching him Saturday because the 94-year-old wasnt as sharp as in past years. At one point, he made a basic math mistake in one of his answers. At other points, he got off track while telling stories about Berkshire and his investing without answering the question he was asked. Abel is well regarded by Berkshires managers and Buffett has praised his business acumen for years. But he will have a hard time matching Buffetts legendary performance, and since he doesnt control 30% of Berkshires stock like Buffett does, he wont have as much leeway.I think the challenge hes going to have is if anyone is going to give him Buffett or (former Vice Chairman Charlie) Mungers pass card? Not a chance in Gods name, Smead said. Buffett always enjoyed a devoted following among shareholders.Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshires companies.I think well get a more hands-on manager and that could be that a good thing, Steven Check, who runs Check Capital Management, said beforehand. But he said Abel also knows that those managers enjoy the freedom to run their businesses and Abel isnt going to do anything to turn them off. Buffett earlier warned that Trumps tariffs were harmfulEarlier, Buffett warned Saturday about the dire global consequences of President Donald Trumps tariffs while telling the thousands of investors gathered at his annual meeting that trade should not be a weapon but theres no question that trade can be an act of war. Buffett said Trumps trade policies have raised the risk of global instability by angering the rest of the world. Its a big mistake in my view when you have 7.5 billion people who dont like you very well, and you have 300 million who are crowing about how they have done, Buffett said as he addressed the topic on everyones mind at the start of the Berkshire Hathaway shareholders meeting. While Buffett said it is best for trade to be balanced between countries, he doesnt think Trump is going about it the right way with his widespread tariffs. He said the world will be safer if more countries are prosperous.We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best, he said.Market turmoil doesnt create big opportunitiesBuffett said he just doesnt see many attractively priced investments that he understands these days, so Berkshire is sitting on $347.7 billion in cash, but he predicted that one day Berkshire will be bombarded with opportunities that we will be glad we have the cash for.Buffett said the recent turmoil in the markets that generated headlines after Trumps tariff announcement last month is really nothing. He dismissed the recent drop in the market because hes seen three periods in the last 60 years of managing Berkshire when his companys stock was halved. He cited when the Dow Jones industrial average went from 240 on the day he was born in 1930 down to 41 during the Great Depression as a truly significant drop in the markets. Currently the Dow Jones Industrial Average sits at $41,317.43.This has not been a dramatic bear market or anything of the sort, he said.Buffett said he hasnt bought back any of Berkshires shares this year either because they dont seem to be a bargain either.Investor Chris Bloomstran, who is president of Semper Augustus Investments Group, told the Gabelli investment conference Friday that a financial crisis might be the best thing for Berkshire because it would create opportunities to invest at attractive prices.Im sure hes praying that the trade war gets worse. He wont say that publicly, but Berkshire needs a crisis. I mean Berkshire thrives in crisis, Bloomstran said. Berkshire meeting attracts thousandsThe meeting attracts some 40,000 people every year who want to hear from Buffett, including some celebrities and well-known investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate Buffett backed publicly because he has shied away from politics and any controversial topic in recent years for fear of hurting Berkshires businesses.Haibo Liu even camped out overnight outside the arena to be first in line Saturday morning. Liu said he worries that this year could be Buffetts last meeting since he is 94, so he made it a priority to attend his second meeting.He has helped me a lot, said Liu who traveled from China to attend. I really want to express my thanks to him. JOSH FUNK Funk is an Associated Press reporter who covers all the major freight railroads including Union Pacific, BNSF, Norfolk Southern, CSX, Canadian National and CPKC. Funk also covers Warren Buffetts Berkshire Hathaway and has been attending Buffetts Woodstock for Capitalists annual meeting every spring in Omaha, Nebraska, for 19 years. twitter mailto