After six decades at the helm of Berkshire Hathaway, Warren Buffett, the legendary “Oracle of Omaha,” has announced he will retire as chief executive by the end of 2025. The 94-year-old investment icon made the announcement at Berkshire’s annual shareholder meeting, addressing a crowd of nearly 40,000 in Omaha, Nebraska, with his trademark wit and humility.

Buffett, who transformed Berkshire from a struggling textile outfit into a US$1.16 trillion behemoth spanning railroads, insurance, energy, consumer goods and a $264 billion stock portfolio, will hand over the reins to Vice Chairman Greg Abel. “I think the time has arrived where Greg should become the chief executive of the company at year end,” Buffett said, signalling a carefully planned succession, albeit one not widely shared even within his inner circle.

The audience erupted into applause, to which Buffett quipped, “The enthusiasm shown by that response could be interpreted in two ways.” True to form, he maintained a sense of levity even in a moment of enormous consequence.

A quiet handover, years in the making

While Abel has long been earmarked as successor – formally since 2021– few outside Buffett’s immediate family were aware the baton would officially pass this year. Even Abel, seated beside him onstage, appeared surprised by the timing. “I couldn’t be more humbled and honoured to be part of Berkshire as we go forth,” Abel said, stepping into the spotlight of one of the world’s most closely watched transitions.

Abel, 62, has been with Berkshire Hathaway Energy since 1992, eventually leading the unit. He is known for his operational rigour and understated style, aligning with Berkshire’s culture of decentralised management and long-term thinking. Analysts expect him to bring a more active oversight style, though within the guardrails of Buffett’s philosophy. “More active, but hopefully in a very positive way,” is how Abel framed it.

A king steps down, but not away

Buffett made clear he is not vanishing into the sunset. “I’ll hang around and conceivably be useful in a few cases,” he said, noting that the final word, however, will rest with Abel. He added emphatically, “I have no intention, zero, of selling one share of Berkshire Hathaway. It will get given away.” That economic vote of confidence was met with roaring approval.

Buffett’s philanthropic legacy is as towering as his financial one. Since 2006, he has given away over half his Berkshire shares to charity, primarily via the Gates Foundation. What remains—his entire fortune, estimated by Bloomberg at US$154 billion—is earmarked for a charitable trust overseen by his children, Susie, Howard, and Peter.

Read: The humility of Warren Buffett

A legacy unmatched

Buffett’s journey from a precocious six-year-old selling chewing gum to the world’s fourth-wealthiest person is etched in business lore. He bought his first shares at 11, filed his first tax return at 13, and never strayed far from Omaha, continuing to live in the same modest house he purchased in 1958 for US$31,500. The stock price of Berkshire has soared 5,502,284% under his leadership since 1965—a testament to his discipline, patience, and value investing ethos.

He was a student of Benjamin Graham, and his refusal to overpay for assets made Berkshire's US$347.7 billion cash stockpile a double-edged sword. Deploying it effectively will be among the major challenges Abel now faces—alongside questions around future acquisitions, dividend policy, and preserving the Berkshire mystique without the Buffett aura.

Reactions pour in from business leaders

The business world responded swiftly and warmly. Tim Cook, CEO of Apple—a key Berkshire holding—wrote: “There’s never been someone like Warren, and countless people, myself included, have been inspired by his wisdom. It’s been one of the great privileges of my life to know him.”

JPMorgan Chase CEO Jamie Dimon was equally effusive: “Warren Buffett represents everything that is good about American capitalism and America itself—inventing in the growth of our nation and its businesses with integrity, optimism, and common sense.”

Read: Why trust is the true currency of leadership

Still, Buffett’s departure raises questions about Berkshire’s future. Cathy Seifert, analyst at CFRA Research, asked, “Will Berkshire still have a Buffett premium when Buffett is not there? You're buying a stock and you're also getting the investing prowess of a legend. With that legend gone, what is the value?”

Cole Smead of Smead Capital Management echoed a sentiment felt across the investment world: “It’s the end of an era. It’s sad, but it’s life.”

Keeping the spirit alive

Berkshire’s shareholder weekend—dubbed “Woodstock for Capitalists”—will continue, drawing tens of thousands annually for business updates, shopping, and a dose of Buffett’s homespun wisdom. Yet there is quiet acceptance that attendance may dwindle without the draw of the man himself.

Buffett’s long-time business partner and confidante, Charlie Munger, passed away in November 2023. Their partnership defined Berkshire’s identity—rooted in pragmatism, trust, and long-termism. While Abel will now steer the ship, Howard Buffett, 70, is expected to eventually step in as non-executive chairman to help preserve this ethos.

What’s next for Berkshire Hathaway?

As Buffett passes the torch, Berkshire faces a new chapter—one in which the legend of Buffett will cast a long but encouraging shadow. With Abel at the helm, the question now is not whether Berkshire can survive without Buffett, but whether it can continue to thrive by staying true to the principles he so masterfully embodied. After all, as Buffett told shareholders: “The fact that you can do pretty well doesn’t mean you couldn’t do better—and Greg can do better.”