"Oracle of Omaha" Buffett Steps Down from Active Management
Vice Chairman Greg Abel Appointed as New CEO
Buffett to Remain as Chairman and Advisor to Management
Warren Buffett (95), the renowned American value investor known as the "Oracle of Omaha," has stepped down as Chief Executive Officer (CEO) of Berkshire Hathaway, concluding his 60-year tenure at the helm of the company.
Warren Buffett, Chairman of Berkshire Hathaway, is opening a bottle of Cherry Cola while playing bridge outside Borsheims Jewelry, owned by Berkshire, in Omaha, Nebraska, USA, in 2018. Photo by AP Yonhap News
According to foreign media reports on January 1, Greg Abel (63), whom Buffett selected as his successor, has officially taken office as the new CEO of Berkshire Hathaway with the start of the new year. While Buffett has relinquished the CEO position, he will remain as Chairman and continue to commute daily to the company's headquarters in Omaha, Nebraska, where he will provide advice on overall management.
The new CEO, Abel, joined the group in 2000 when Berkshire acquired MidAmerican Energy. He has since demonstrated his management capabilities, particularly in the energy sector, and has served as Vice Chairman overseeing all core businesses except insurance since 2018.
At the annual shareholders' meeting held in May last year, Buffett surprised the market by announcing his plan to step down as CEO at the end of 2025. On his final working day, December 31 (local time), Berkshire Hathaway Class A shares closed at 754,800 dollars, down 0.1 percent from the previous day, while Class B shares fell 0.2 percent to 502.65 dollars.
It is estimated that investors who have held Berkshire shares long-term since Buffett took control in 1965 have achieved cumulative returns of approximately 6,100,000 percent over nearly 60 years. This far outpaces the return of the S&P 500 index, including dividends, over the same period.
Berkshire has grown into a massive holding company with subsidiaries across various industries, including the insurance company GEICO, railroad operator BNSF, and consumer brand Dairy Queen. As of the end of September last year, its cash and cash equivalents stood at 381.7 billion dollars, and its equity holdings amounted to 283.2 billion dollars. Major investments include Apple, American Express, Bank of America, Coca-Cola, and Chevron.
However, it has not yet been revealed who will be responsible for overseeing the group’s overall investment strategy following Buffett’s departure. The market is also closely watching for any potential changes in the portfolio management system going forward.
Currently, Buffett’s personal fortune is estimated at around 150 billion dollars, ranking him among the world’s top ten wealthiest individuals according to the Bloomberg Billionaires Index. He has consistently expressed his intention to donate a substantial portion of his accumulated wealth and is recognized for his significant philanthropic contributions.
With Buffett stepping down as CEO, his annual shareholder letters-which were considered essential reading for investors-will no longer be published.
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