Warren Buffett Steps Down Greg Abel Named as Berkshire Hathaway’s Next CEO

 

Warren Buffett Steps Down: Greg Abel Named as Berkshire Hathaway’s Next CEO

The long-awaited change at Berkshire Hathaway is finally official after decades of conjecture. Legendary investor Warren Buffett, 94, said he will leave his position as CEO at the end of the year after the company's annual shareholder meeting on Saturday. Greg Abel will assume leadership of the $1.1 trillion corporation in his place.

The change has been officially accepted by the board of directors, confirming Abel as Berkshire Hathaway's future CEO.

A Smooth Succession: Abel Was Always the Likely Heir

Those who carefully followed Berkshire were not surprised by Buffett's decision to appoint Abel as his successor. Buffett has previously stated in May 2021 that Abel would most likely succeed him.

At the time, Buffett told CNBC, "The directors agree that Greg would take over tomorrow if something happened to me tonight."

At Berkshire Hathaway Energy, Abel, 62, is the chairman and CEO in addition to being the vice-chairman in charge of the business's non-insurance division.

Who Is Greg Abel? From Alberta to Berkshire’s Corner Office

Abel started the business industry in an older way than Buffett, who is known for buying his first stock at the age of 11. He was born and reared in Edmonton, Alberta, and graduated from the University of Alberta in 1984 with a bachelor's degree in accountancy.

Buffett has frequently called Abel a “proud Albertan” with affection, and he has even mentioned how Abel’s Canadian heritage comes up in boardroom conversations. Buffett once remarked, "They know he's from Canada, they know he loves hockey, and they know his Uncle Sid played for the Detroit Red Wings."

Climbing the Corporate Ladder: Abel’s Rise to the Top

Before moving to PricewaterhouseCoopers' San Francisco branch, Abel started his career in Edmonton. He joined CalEnergy, a utility firm run by David Sokol, who was previously thought to be Buffett's top successor, in 1992.

MidAmerican Energy Holdings was purchased by CalEnergy in 1998 for $4 billion. The newly merged organization elected Abel as its president. Buffett praised Abel for taking over as CEO of MidAmerican when Sokol redirected his attention to revitalize NetJets, another Berkshire firm.

Abel was among those who took the energy company private in 2000, together with Buffett. In 2014, the business changed its name to Berkshire Hathaway Energy, and Abel now leads 11 companies.

Abel’s Role Within Berkshire Continues to Grow

Abel became an executive member of Berkshire Hathaway Inc. in 2018 and took control of all non-insurance businesses. He continues to work out of the parent company Berkshire Hathaway Energy's offices in Iowa's Des Moines.

Abel is gradually gaining the confidence of the board, shareholders, and Buffett himself in his role as CEO-in-waiting.

A Different Kind of Leader: Abel Brings a More Active Style

CNBC's Becky Quick questioned Abel on how his leadership style will be different from Buffett's during the meeting on Saturday. Buffett joked, "Better," before Abel could reply.

His strategy is "more active, but hopefully in a very positive way," Abel continued. Buffett said, "Greg does something about it," acknowledging that Abel manages underperforming divisions with more firmness. In general, I've been careless.

Praise From Buffett, Munger, and Apple’s Tim Cook

Buffett is by no means the only person who has praised Abel. Former Berkshire vice-chairman Charlie Munger, who passed away, praised Abel's intelligence, execution, and capacity to guide others, calling him "just sensational at being a business leader."

Munger remarked, "You could say he's just as good as Warren when it comes to learning." "The culture will remain with Greg."

Abel attributes his strong sense of curiosity, which he claims is crucial to comprehending and enhancing Berkshire's diverse businesses, to Buffett.

"Greg is ready," said board member Ron Olson, echoing the view. We have long been aware of it. He has been studying the entire industry since 2018.

Tim Cook, the CEO of Apple, also had opinions. "No one has ever been like Warren," Cook wrote on