In a surprising move, legendary investor Warren Buffett, popularly known as "Oracle of Omaha", has announced that he will step down from his role as CEO, Berkshire Hathaway Inc. by the end of the year. During a recent shareholders' meeting on Saturday, Buffett revealed that he plans to recommend Greg Abel as the new CEO of Berkshire Hathaway, marking a major leadership change in one of the world’s largest and most admired companies.

Let’s take a closer look at Greg Abel, the man who will soon take the reins from the iconic Warren Buffett.

Warren Buffett Announces Retirement and Chooses Greg Abel as Successor

During a five-hour Q&A session with shareholders, Warren Buffett made an unexpected announcement. The 94-year-old investment guru said he believes the time is right for a leadership change at Berkshire Hathaway.

Warren Buffett is one of the richest american with net worth of $168 billion | Credit: AP

“I think the time has come for Greg Abel to take over as Chief Executive Officer of the company at the end of the year,” Buffett said.

Interestingly, only Buffett’s children—Howard and Susie, who are also board members—knew about the decision beforehand. Even Greg Abel, who was sitting beside Buffett during the announcement, had no prior idea that the change would be revealed that day.

Who Is Greg Abel?

So, who exactly is Greg Abel, the man set to become the next CEO of Berkshire Hathaway and Warren Buffett’s successor?

Greg Abel is a seasoned executive who has worked at Berkshire Hathaway for over 25 years. Currently serving as Vice Chairman, Abel oversees all of the company’s non-insurance businesses. These include massive enterprises such as BNSF Railway, Berkshire Hathaway Energy, and various manufacturing and retail businesses.

Born on June 1, 1962, in Edmonton, Alberta, Canada, Greg Abel comes from a humble background. As a young man, he worked several odd jobs like cleaning bottles and fixing fire extinguishers to make ends meet. He graduated from the University of Alberta in 1984 and went on to work at PricewaterhouseCoopers and CalEnergy before joining MidAmerican Energy in 1992.

In 1999, Berkshire Hathaway acquired MidAmerican Energy, and Abel gradually climbed the ranks to become a key leader in the company. By 2008, he had become CEO of MidAmerican Energy (now Berkshire Hathaway Energy).

Abel Has Long Been Seen as Warren Buffett’s Successor

Talks about Greg Abel becoming Warren Buffett’s successor have been around for years. In fact, back in 2021, a Reuters report confirmed that Abel was already being considered the likely candidate to take over the top job.

Although Abel has not directly handled Berkshire’s insurance businesses or made the high-stakes investment decisions that Warren Buffett is famous for, he has shown strong leadership and management skills across various other business areas. He will now also be responsible for the insurance side of the company, with help from fellow Vice Chairman Ajit Jain.

Will Greg Abel Be Able to Fill Warren Buffett’s Shoes?

Taking over from someone as legendary as Warren Buffett is no easy task. Buffett is widely seen as one of the most successful investors of all time, and his influence over Berkshire Hathaway has shaped the company into a global powerhouse worth over $865 billion.

Many investors trust Greg Abel’s ability to run the company well. However, some are curious to see how he will perform when it comes to investment decisions—an area where Buffett has always excelled.

Abel does not own as large a share in Berkshire Hathaway as Buffett does. This means he may not have the same level of freedom when it comes to making bold decisions. However, Buffett made it clear during the announcement that he fully supports Abel, even saying he would keep his personal investment in the company intact to show his confidence.

Greg Abel's net worth

Greg Abel is known for leading a modest and grounded life has estimated net worth of $1 billion, according to Gulf new. Unlike many high-profile executives, Abel lives in Des Moines, Iowa, far from the bustling business hubs of New York or Los Angeles. He has been actively involved in his local community and is often described as a down-to-earth person.

According to the Des Moines Register, Greg Abel has previously coached his son’s hockey and baseball teams, earning respect not just as a business leader but also as a dedicated father and community member.

Abel has four children. Three from his first marriage and a young son with his wife Andrea.

What to Expect from Berkshire Hathaway Under Greg Abel

As the incoming CEO of Berkshire Hathaway, Greg Abel is expected to maintain the company’s long-term investment approach, a core principle established by Warren Buffett. He is also likely to continue the policy of not paying dividends, focusing instead on reinvesting profits to grow shareholder value.

Although he faces a tough road ahead, especially being compared to someone as iconic as Warren Buffett, Greg Abel has shown dedication, loyalty, and strong leadership. Many believe he is well-prepared to guide Berkshire Hathaway into the future.

What were the two questions for Greg Abel?

The two key questions were, “If you were stuck on a desert island for 10 years and could only own the stock of one of your competitors, which one would it be — and why?’ Then ask the reverse: ‘If you had to short the stock of one competitor — and stake your net worth on it while you’re away — which one would it be, and why?”

The era of Warren Buffett is slowly coming to an end, and a new chapter begins with Greg Abel stepping in as the next CEO of Berkshire Hathaway. As Buffett’s trusted lieutenant and longtime partner, Greg Abel is seen as the ideal choice to continue the legacy of one of the world’s most successful companies.

With big shoes to fill and new responsibilities on the horizon, all eyes will be on Greg Abel as he prepares to lead Berkshire Hathaway into its next phase.

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