Warren Buffett Steps Down as Berkshire Hathaway CEO After Decades of Leadership
Omaha, NE – May 4, 2025 – Warren Buffett, the legendary investor and longtime CEO of Berkshire Hathaway, has announced his retirement after more than five decades at the helm of the conglomerate. The 94-year-old “Oracle of Omaha” revealed the decision in a letter to shareholders, marking the end of an era for one of the most influential figures in finance. Buffett, who transformed Berkshire from a struggling textile company into a multi-billion-dollar empire with stakes in companies like Apple, Coca-Cola, and American Express, will hand over the reins to Vice Chairman Greg Abel, his designated successor since 2021. The announcement sent ripples through financial markets, with Apple shares dropping 6% in pre-market trading as investors speculate on the future of Berkshire’s significant 300 million-share holding in the tech giant.
Buffett’s tenure, which began in 1965, has been defined by his value-investing philosophy and a knack for picking winning stocks, earning him a near-mythical status among investors. Under his leadership, Berkshire’s market value soared from $19 million to over $900 billion, with Apple alone contributing nearly $70 billion to its portfolio as of early 2025. However, recent moves, including the sale of over 600 million Apple shares in 2024, had already raised questions about his long-term commitment to the tech company. His departure, effective immediately, has sparked concerns about potential shifts in Berkshire’s investment strategy, with analysts noting that Abel’s approach may differ. Despite the uncertainty, Buffett expressed confidence in Abel, stating, “Greg has the skills and temperament to lead Berkshire into the future.”
The transition comes at a pivotal time for both Berkshire and the broader market, with Apple’s stock facing additional pressure from macroeconomic factors like U.S.-China trade tensions. Historical precedents, such as Steve Jobs’ 2011 resignation from Apple, suggest a short-term dip followed by recovery if leadership proves effective. Abel, a seasoned executive with deep ties to Berkshire’s operations, is expected to maintain its core principles, though some investors worry about the loss of Buffett’s personal influence. Berkshire shares fell 4% in early trading, while Apple’s decline reflects fears of reduced institutional support. Buffett plans to remain chairman emeritus, advising the board, but the financial world is bracing for a new chapter without its iconic leader.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in securities involves risks, and individuals should conduct their own research or consult a qualified financial advisor before making investment decisions.
