Warren Buffett who is the fifth richest person in the world and among the top 10 billionaires globally surprised 40000 shareholders during the company’s annual meeting by suddenly announcing his retirement as CEO. At the age of 94 the billionaire has declared that it is time to hand over the reins of the company to someone else. While addressing the shareholders during the annual meeting Buffett stated that he will officially retire from his position by the end of this year. He further mentioned that this decision has been carefully considered and that the time has come for new leadership to take the company forward. Buffett said he will recommend to Berkshire Hathaways board on Sunday that Vice Chairman Greg Abel should replace him. “I think the time has arrived where Greg should become the chief executive officer of the company at year end” Buffett said. Abel has been Buffetts designated successor for years and he already manages all of Berkshires noninsurance businesses. But it was always assumed that he would not take over until after Buffetts death. Previously the 94-year-old Buffett always said he had no plans to retire. Buffett announced the news at the end of a five-hour question and answer period without taking any questions about it. He said the only board members who knew this was coming were his two children Howard and Susie Buffett. Abel who was sitting next to Buffett on stage had no warning. Abel returned an hour later without Buffett to conduct the companys formal business meeting and he responded to the news. “I just want to say I couldnt be more humbled and honored to be part of Berkshire as we go forward” Abel said. Many investors have said they believe Abel will do a good job running Berkshire but it remains to be seen how good he will be at investing Berkshires cash. Buffett endorsed him Saturday by pledging to keep his fortune invested in the company. “I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually” Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Gregs management than mine.” Thousands of investors in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company. During that period Berkshire nearly doubled the returns of the S&P 500 with a 19.9% compounded annual growth rate compared with the indexs 10.4% gain. Buffett had such a devoted following among investors that markets would move when his investments were disclosed because so many people copied him. CFRA research analyst Cathy Seifert said it had to be hard for Buffett to decide to step down. “This was probably a very tough decision for him but better to leave on your own terms” Seifert said. “I think there will be an effort at maintaining a business as usual environment at Berkshire. That is still to be determined.” (With inputs from PTI)