Warren Buffett and Greg Abel were seen walking through the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2025.
After a remarkable six-decade tenure, Warren Buffett has transferred the CEO role of Berkshire Hathaway to Greg Abel. Buffett transformed the company from a simple textile firm into one of the most powerful investment vehicles in history. As Buffett continues as Chairman, investors reflect on the extraordinary achievements he made at the helm. When Buffett took charge in the mid-1960s, Berkshire shares were priced around $19, but by the end of 2025, a single Class A share soared to over $750,000. From 1964 to 2024, the company achieved a compounded annual gain of 19.9%, vastly surpassing the S&P 500's 10.4% and delivering an overall return exceeding 5.5 million percent. In 2025, shares added another 10% to this impressive return.
Berkshire’s success was driven by a straightforward strategy: employing insurance float for low-cost capital, investing in businesses with sustainable cash flows, and allowing time to yield results. This approach led to significant investments in companies like Coca-Cola and American Express, while expanding into sectors such as railroads, utilities, and manufacturing. Bill Stone, CIO at Glenview Trust Company, noted the unlikely chance of this formula being replicated, highlighting the exceptional partnership between Buffett and Charlie Munger.
As Buffett steps down, Seth Klarman of the Baupost Group emphasized Buffett's standing as an American role model, marking his retirement as more than just a leadership change. Buffett remarked that he plans to 'go quiet,' reducing his public presence while remaining as Chairman. Greg Abel will now take on the task of writing Berkshire's annual shareholder letters, a tradition Buffett initiated in 1965. Despite this change, Buffett will continue to write an annual Thanksgiving message.
Berkshire's annual shareholder meetings, famously called 'Woodstock for Capitalists,' drew large crowds each year for in-depth discussions, positioning Buffett as a respected voice amid market fluctuations. Under Buffett, Berkshire never split its stock, rejected earnings guidance, and allowed managers considerable freedom, while capital allocation was centralized in Omaha.
Ann Winblad, MD at Hummer Winblad Venture Partners, expressed confidence that Berkshire's culture of patient, long-term, and careful investing would persist under Abel's leadership, ensuring the company's strategic principles remain unchanged.