Warren Buffett announced on Saturday that he will retire as CEO of Berkshire Hathaway at the end of the year. Greg Abel, a 25-year veteran of the company, will take his place. Buffett has led Berkshire since 1965.
In that time, the company’s stock has increased almost 45,000 times. This is about 1,000 times more than the Dow Jones Industrial Average.
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“Even though we knew it was inevitable, Warren’s announcement today came as a shock to the system,” a fellow shareholder said.
Buffett is known for his investing success and for treating his duty to shareholders as a sacred trust.
Buffett announces retirement from Berkshire
He has avoided the frequent bad behavior and greed on Wall Street.
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Buffett said he has no plans to sell Berkshire stock due to the change.
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“I would still hang around, and could conceivably be useful in a few cases, but the final word would be what Greg said,” Buffett stated. Abel, 62, is currently the chairman and CEO of Berkshire Hathaway Energy and vice-chairman of non-insurance operations.
He joined the company in 1992 after working at a consulting firm. Former Berkshire vice-chairman Charlie Munger has praised Abel, calling him “just sensational at being a business leader” and “a tremendous learning machine.” Munger said, “Greg will keep the culture.”
Abel says he learned to be curious from observing Buffett. Compared to Buffett’s approach, he plans to be more active in dealing with Berkshire’s subsidiaries.
“There’s no question that Warren is leaving Berkshire in great hands with Greg,” said Ron Olson, a longtime Berkshire board member.
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