Warren E. Buffett has been at the forefront of American capitalism for decades as the CEO of Berkshire Hathaway, the conglomerate he built into a $1.1 trillion colossus.
By the end of the year, he is preparing to give up that role.
Buffett said at Berkshire’s annual shareholder meeting Saturday that he plans to ask the company’s board to approve making Gregory Abel, his heir apparent, the CEO by the end of the year.
Abel would have “the final word” when it comes to the company’s operations, how it invests and more, Buffett, 94, told the tens of thousands of Berkshire shareholders at the meeting in Omaha, Nebraska.
But Buffett added that he “would still hang around and conceivably be useful in a few cases”. He will remain chair of Berkshire — turning that role over to his son Howard Buffett upon his death — and remains the company’s single biggest shareholder, with a roughly 14 per cent stake that is worth about $164 billion.
Buffett’s plan, which he said had been known only to two of his children who sit on the company’s board, Howard and Susan Buffett, was greeted by a minute-long standing ovation by Berkshire shareholders. Abel, 62, appeared surprised by his boss’s announcement. After the announcement, several board members hugged one another.
Although Buffett looked in good health, having led several hours of questions from investors Saturday, changes to this year’s annual meeting — his 60th at Berkshire — reflected his advancing age. He used a cane, which he first mentioned in the company’s annual letter in February, and shortened the shareholder question session by several hours.
If the board approves the plan, it would signify the end of an era for one of the most successful companies in modern capitalist history and one of its most famous investors.
‘Tariffs shouldn’t be a weapon’
Before announcing his plan to step down as Berkshire Hathaway chief executive at the end of the year, Warren Buffett offered a fervent defence of trade on Saturday, saying tariffs should not be a “weapon” and the US would be better off if other countries shared its prosperity.
“Balanced trade is good for the world” and “trade should not be a weapon” said Buffett, 94, who has run Berkshire for 60 years and is arguably the world’s most revered investor.
“I don’t think it’s a good idea to design a world where a few countries say, ha ha ha, we’ve won,” Buffett added. “I do think that the more prosperous the rest of the world becomes ... the more prosperous we’ll become.”
Berkshire itself has remained cautious toward markets, as its cash stake swelled in the first quarter to a record $347.7 billion.