Omaha, Nebraska — Warren Buffett, the iconic figure behind Berkshire Hathaway, announced his plans to retire as CEO by the end of this year, a momentous decision that was met with both surprise and anticipation during the company’s annual shareholder meeting. The board has officially named Greg Abel as his successor, effective January 1, 2026.

Buffett, who has served as CEO for 55 years and is now 94 years old, will continue in his role as chairman of the board. He expressed confidence in Abel, highlighting that the timing is right for the leadership transition. “I think the time has arrived where Greg should become the chief executive of the company at year end,” Buffett noted during his address to shareholders on Saturday.

Abel, 62, has been with Berkshire Hathaway since 2000 and was promoted to vice chair for non-insurance operations in 2018. He is also the chair of Berkshire Hathaway Energy, one of the firm’s key sectors. Buffett has previously described this subsidiary as one of the company’s “jewels,” reaffirming Abel’s integral role within the conglomerate’s structure.

The board’s swift confirmation of Abel as the next CEO signals strong backing for his leadership style and vision. Investors are optimistic about his ability to uphold Berkshire’s long-standing investment philosophy, particularly his commitment to maintaining a robust balance sheet that supports large-scale investments without reliance on external financing.

In contrast to Buffett’s more laid-back management approach, Abel is known for a more hands-on strategy. This shift may influence the operational dynamics within the company, as he charts a path forward while honoring the firm’s foundational principles.

A Canadian native with roots in hockey, Abel earned a degree in commerce from the University of Alberta in 1984. His career began at PwC before he moved to CalEnergy, which later became part of the Berkshire family. After taking charge of what is now Berkshire Hathaway Energy in 2008, Abel successfully navigated the company’s growth until his appointment as vice chair less than a decade later.

Outside of his professional responsibilities, Abel maintains connections with various institutions and charitable organizations, reflecting his commitment to community service. Residing in Des Moines, Iowa, he is often described as approachable and down-to-earth by those who encounter him during local events, a quality that mirrors Buffett’s own reputation.

As the transition year approaches, Buffett emphasized that this change is more than a simple job handover. He is also passing on traditions and a business mindset that has defined Berkshire Hathaway’s identity. In his forthcoming annual report, Buffett remarked, “Greg shares the Berkshire creed that a ‘report’ is what a Berkshire CEO annually owes to owners,” underlining the importance of transparency and integrity in the company’s operations.

As the story unfolds, all eyes will be on Abel as he begins to shape the future of one of the world’s most respected conglomerates, navigating the challenges and opportunities that lie ahead.