Warren Buffett, the legendary investor and one of the wealthiest individuals in the world, announced on Saturday that he plans to step down as the CEO of Berkshire Hathaway by the end of the year. This surprise revelation came after a five-hour Q&A session at the company’s annual shareholders' meeting, marking the end of an era for the 94-year-old who has helmed the company for over six decades.

Buffett, who had previously expressed no intentions of retiring, shared that he would recommend Vice Chairman Greg Abel as his successor. "I think the time has come for Greg to take over as CEO at the end of the year," Buffett said, signaling the transition of leadership within the conglomerate. The announcement was met with a standing ovation from the thousands of investors gathered at the Omaha arena in Nebraska.

Buffett's tenure at Berkshire Hathaway began in 1965, when he took control of the struggling textile company and transformed it into one of the most successful and diversified conglomerates in the world. Known as the "Oracle of Omaha," Buffett built his fortune by investing in undervalued businesses and stocks, earning him a revered position in the financial world.

Greg Abel, who has been Buffett’s designated successor for years, is currently overseeing all of Berkshire’s non-insurance operations. Though many had anticipated that Abel would eventually succeed Buffett, it was widely assumed that this would happen only after the billionaire’s passing. However, with Buffett’s announcement, Abel now finds himself in the spotlight as the next CEO of the company.

Speaking shortly after the announcement, Abel expressed his gratitude for the opportunity, stating, “I couldn’t be more humbled and honored to be part of Berkshire as we go forward.” Despite the positive reception, some analysts have noted that while Abel’s leadership is expected to be strong, the true test will be how he manages Berkshire’s considerable cash reserves.

Cathy Seifert, an analyst at CFRA, commented on Buffett's decision to retire, calling it a tough but necessary move. "This was probably a very tough decision for him, but better to leave on your own terms,” Seifert remarked. “There will likely be an effort to maintain a ‘business as usual’ atmosphere at Berkshire, but time will tell.”

Buffett, for his part, expressed his unwavering confidence in Abel’s abilities, affirming that he would continue to keep his personal fortune invested in Berkshire Hathaway. "I have no intention — zero — of selling one share of Berkshire Hathaway," he said. "I will give it away eventually. The decision to keep every share is an economic one because I believe Berkshire’s future is brighter under Greg's management than mine."

During the same meeting, Buffett also weighed in on global trade, offering a stark warning about the risks posed by U.S. President Donald Trump's tariffs. He cautioned that using trade as a weapon could lead to severe global instability. "It’s a big mistake when you have 7.5 billion people who don’t like you very much, and 300 million who are celebrating their success," Buffett remarked, alluding to the international fallout from the Trump administration’s trade policies.

Buffett expressed concern that tariffs could escalate tensions globally, highlighting the potential dangers of turning trade into a form of conflict. "Trade can be an act of war," he warned. While advocating for more balanced trade relationships between nations, he made it clear that he did not believe Trump's approach was the right one.

As Buffett prepares to step away from the helm of Berkshire Hathaway, the financial world will undoubtedly be watching closely as Greg Abel takes charge of the conglomerate’s next chapter. Meanwhile, Buffett’s comments on trade serve as a timely reminder of the broader challenges the world faces in an increasingly interconnected global economy.



By WafricNews Business Desk.