Greg Abel has officially assumed the role of Chief Executive Officer at Berkshire Hathaway, concluding Warren Buffett's six-decade tenure as CEO. Buffett, 95, will continue to serve as the company's chairman, a position he is expected to hold while providing ongoing counsel to the new leadership. The transition, which occurred on Thursday, marks a significant shift for the multinational conglomerate, which Buffett transformed from a struggling textile mill into a trillion-dollar entity.
Leadership Transition Details
Warren Buffett publicly designated Greg Abel, 63, as his successor in 2021, a plan that gained increased attention following the death of his longtime business partner, Charlie Munger, in 2023. Buffett confirmed his intention to transfer the CEO responsibilities by the end of the year at the company's annual shareholder meeting in May. Abel's responsibilities now include maintaining Berkshire's decentralized operational model and addressing its growth objectives.
Greg Abel's Background and Career Trajectory
Abel's professional journey began with early entrepreneurial experiences, including collecting and redeeming soda bottles and delivering advertising fliers in his hometown of Edmonton, Canada. After graduating from the University of Alberta in 1984, he started his corporate career at PwC. He later transitioned to CalEnergy, a geothermal business, where he held senior executive roles from 1992 to 2008, eventually becoming its CEO and chairman.
Berkshire Hathaway acquired a controlling interest in CalEnergy in October 1999, which was subsequently rebranded as MidAmerican and later Berkshire Hathaway Energy. Abel served as CEO and executive chairman of Berkshire Hathaway Energy from 2008 to 2018. In 2018, he was appointed Vice Chairman of Berkshire Hathaway's non-insurance operations, a role that positioned him for the eventual succession to CEO. Abel joined Berkshire Hathaway in 2000 following his role as CEO of MidAmerican, where he contributed to its development into a significant producer of wind energy in the United States.
Warren Buffett's Continued Role and Endorsement
Buffett has expressed strong confidence in Abel's leadership capabilities. He stated that Abel would be "the decider" in the company's operations, including capital allocation. Buffett remarked, "I can't imagine how much more [Abel] can get accomplished in a week than I can in a month." He further commented, "I'd rather have Greg handling my money than any of the top investment advisors or any of the top CEOs in the United States."
In a recent letter to shareholders, Buffett noted that Abel "has more than met the high expectations I had for him when I first thought he should be Berkshire's next CEO. He understands many of our businesses and personnel far better than I now do, and he is a very fast learner about matters many CEOs don't even consider." Buffett will continue to work five days a week, providing Abel with ongoing access to his experience. He also intends to continue sharing his perspectives through annual letters. Buffett affirmed Berkshire's long-term viability, stating, "It has a better chance, I think, of being here 100 years from now than any company I can think of."
Berkshire Hathaway's Business and Financial Performance
Berkshire Hathaway operates a diverse portfolio of businesses, including insurance companies, railroads, Dairy Queen, and Duracell batteries. It also holds significant investments in publicly traded companies such as Apple, Coca-Cola, and American Express. The conglomerate employs approximately 400,000 individuals across numerous subsidiaries. As of the end of September, Berkshire Hathaway possessed a record $381.6 billion in cash.
In 2025, Berkshire Hathaway recorded a 10.9% gain, trailing the S&P 500's 16.4% advance for the year. This marked the company's tenth consecutive year of positive returns. Under Buffett's leadership from 1964 through 2024, Berkshire achieved a compounded annual gain of 19.9%, nearly double the S&P 500's 10.4% over the same timeframe, resulting in an aggregate return exceeding 5.5 million percent.
Market Reaction and Operational Outlook
Following Buffett's retirement announcement in May and on Abel's initial day as CEO, Berkshire Hathaway Class A shares experienced a decline, trading up to 1.4% lower during morning hours and 0.5% lower by the last reported observation on Friday. This market reaction occurred as investors processed the formal conclusion of Buffett's leadership.
Cathy Seifert, an analyst at CFRA Research, has indicated that operational adjustments by Abel would be a logical development for a company of Berkshire's scale. She suggested that a more traditional leadership approach could be beneficial for a company with such a large workforce distributed across numerous subsidiaries. Abel has already initiated some leadership changes, including the appointment of NetJets CEO Adam Johnson to manage all of Berkshire's consumer, service, and retail businesses. The company may also face increased pressure to implement a dividend payment policy, a departure from its historical practice of reinvesting profits. While Abel is perceived to be more actively involved in day-to-day operations than Buffett, significant overhauls of the company's established decentralized practices are not widely anticipated, as Abel has consistently demonstrated a commitment to this structure.