Warren Buffett Shocks Wall Street: 94-Year-Old 'Oracle of Omaha' to Step Down as Berkshire CEO After 60-Year Reign

The End of an Era: Warren Buffett Announces Retirement After 60 Years at Berkshire Hathaway

In a move that sent ripples through the investment world, Warren Buffett, the legendary 94-year-old investor known as the 'Oracle of Omaha,' has announced his retirement as CEO of Berkshire Hathaway effective at the end of 2025. The announcement came during the company's annual shareholder meeting on May 3, stunning thousands of attendees who have followed his investment wisdom for decades.

Buffett, who transformed Berkshire from a struggling textile company into a $1.16 trillion conglomerate over his 60-year tenure, will hand over the reins to Greg Abel, the 62-year-old vice chairman who oversees Berkshire's non-insurance operations. While Buffett will step down as CEO, he plans to remain as chairman of the board, providing continuity and guidance during the transition.

The announcement marks the end of one of the most remarkable leadership runs in business history. Since taking control of Berkshire in 1965, Buffett has delivered an average annual revenue growth rate of 19.9%, creating enormous wealth for shareholders who trusted his value-investing philosophy.

The Aging Oracle: Why Buffett Finally Decided to Step Down

In a candid interview with The Wall Street Journal published on May 14, Buffett revealed the personal challenges that led to his decision. 'I didn't really start feeling old for some strange reason until I was around 90,' he told the WSJ. 'But at some point, you start to age, and it's-it's irreversible.'

The nonagenarian investor acknowledged experiencing several age-related difficulties, including losing his balance while walking, struggling to remember names, and finding it increasingly difficult to read newspaper text due to declining vision. These challenges, rather than any single dramatic moment, gradually convinced him it was time to pass the torch.

Buffett's decision represents a significant shift for a man who had consistently stated he had no plans to retire. His acknowledgment of his limitations shows remarkable self-awareness and responsibility toward the company he built. 'The difference between what he [Greg Abel] can get done in 10 hours and what I can get done in 10 hours is getting wider and wider,' Buffett admitted, recognizing his successor's superior effectiveness in managing the company's operations.

Greg Abel: The Chosen Successor Taking the Helm

Greg Abel, who has served as the chairman of Berkshire's non-insurance operations since 2018, was officially identified as Buffett's anticipated successor in 2021. The Canadian-born executive, who hails from Edmonton, Alberta, has earned Buffett's complete confidence through his leadership at Berkshire Hathaway Energy and his deep understanding of the conglomerate's diverse business portfolio.

Abel appeared surprised by the timing of Buffett's announcement at the shareholder meeting, though the succession plan itself had been established years earlier. Following the announcement, Abel took the stage to conduct a formal Berkshire meeting in Buffett's absence, telling attendees, 'I could not feel more humbled and honored to be part of Berkshire going forward.'

The Berkshire board unanimously voted on May 5 to appoint Abel as president and CEO effective January 1, 2026. With Buffett remaining as chairman, shareholders can take comfort that the Oracle will still be available to help Abel navigate any significant acquisition opportunities that might arise in potentially volatile markets.

Buffett's Extraordinary Journey: From Newspaper Boy to Investment Legend

Warren Buffett's path to becoming one of the world's most successful investors began in Omaha, Nebraska, where he was born in August 1930 to Leila and Howard Buffett. His father was an investment banker and future Republican congressman who instilled in young Warren an early interest in numbers and investing.

By age 11, Buffett had purchased his first stock, and by 15, he had earned $2,000 working as a newspaper delivery boy for The Washington Post, investing $1,200 in a 40-acre farm. His academic journey took him through the University of Pennsylvania's Wharton School, the University of Nebraska, and Columbia Business School, where he studied under legendary value investor Benjamin Graham.

In 1956, Buffett returned to Omaha and launched Buffett Associates, becoming a millionaire by age 30. His fateful acquisition of Berkshire Hathaway in 1965 initially seemed like a standard value investment in a declining textile business. However, Buffett transformed it into a vehicle for acquiring other businesses and making investments, eventually shutting down the textile operations in 1985 while keeping the company name for his growing conglomerate.

The Investment Philosophy That Built a Fortune

Buffett's investment approach evolved from Benjamin Graham's strict value investing principles to a more nuanced strategy focused on acquiring great businesses at fair prices rather than fair businesses at great prices. This shift was heavily influenced by his partnership with Charlie Munger, who joined Buffett as vice-chairman of Berkshire in 1978 and remained his close associate until Munger's death in 2023.

Throughout his career, Buffett has made numerous legendary investments that exemplify his philosophy. In the 1960s, he recognized opportunity amid crisis when American Express's stock plummeted following a salad oil scandal. Buffett invested $13 million in the company, recognizing its strong underlying assets beyond those implicated in the scandal. This became one of his earliest triumphs, with Berkshire eventually becoming American Express's largest shareholder.

Other notable successes include the 1972 acquisition of See's Candies for $25 million, which has since returned more than $1.6 billion, and a 2008 investment of $232 million in Chinese automaker BYD that grew to $7.7 billion by 2021. Buffett's insurance acquisitions, beginning with National Indemnity Company in 1967, provided a consistent source of investment capital through the 'float'-cash held between collecting premiums and paying claims-which reached $173 billion by early 2025.

What Retirement Means for the Man Who Never Wanted to Retire

Despite stepping down as CEO, Buffett has made it clear that retirement won't mean inactivity. 'I'll still be around, and I might be helpful in certain ways,' he stated at the shareholder meeting. In his Wall Street Journal interview, he emphasized, 'I'm not going to sit at home and watch soap operas... My interests are the same.'

Buffett maintains that his investment judgment remains intact despite his physical limitations. 'I can make decisions just as easily today as I could 20 years ago or 40 years ago or 60 years ago,' he reflected. 'If there's panic in the market, I don't get afraid of price declines or fearful. In that respect, I still think I'm a valuable asset.'

Buffett plans to retain all of his Berkshire stock, which will eventually be donated to philanthropic causes as part of his Giving Pledge commitment. 'I have absolutely no plans, zero, of selling a single share of Berkshire stock. They will be given away,' he assured shareholders at the meeting, drawing cheers from the crowd.

The Legacy and Future of Berkshire Hathaway

As Buffett prepares to step back from day-to-day operations, he leaves behind an extraordinary legacy. Under his leadership, Berkshire Hathaway has delivered a jaw-dropping 5,502,284 percent return to shareholders over his 55-year reign-a figure that dwarfs the performance of most other investment vehicles over the same period.

The conglomerate now oversees about 200 subsidiaries across various industries, including insurance, railroads, and energy, with liquid assets of approximately $300 billion. Berkshire's significant investments in five key companies-American Express, Bank of America, Coca-Cola, Chevron, and Apple-form the backbone of its portfolio, with its Apple investment alone valued at nearly $70 billion by late 2024.

Looking ahead, Greg Abel faces the monumental task of filling Buffett's shoes while navigating an increasingly complex global economy. With Buffett remaining as chairman and maintaining his investment acumen, and with the company's strong financial position including over $347 billion in cash reserves, Berkshire appears well-positioned for the transition. As Apple CEO Tim Cook noted in his tribute to Buffett: 'There has never been anyone like Warren, and countless individuals, myself included, have been inspired by his insights... Without a doubt, Warren is leaving Berkshire in excellent hands with Greg.'

As the investment world prepares for this historic transition, Buffett's influence on business, investing, and philanthropy will continue to resonate far beyond his tenure as CEO. The Oracle of Omaha may be stepping down, but his wisdom and legacy will endure for generations to come.