TLDR

Warren Buffett announced he’s stepping down as Berkshire Hathaway CEO at the end of 2025, with Greg Abel as successor
Berkshire Hathaway (BRK-B) stock dropped over 5% following the announcement
Buffett, 94, delivered a 5,502,284% return during his tenure since 1965
Despite his investment success, Buffett remained a vocal Bitcoin critic, calling it “rat poison squared”
Abel, who will take over January 1, 2026, says Berkshire’s $300 billion cash pile is a “strategic asset”

Warren Buffett, the legendary 94-year-old investor known as the “Oracle of Omaha,” surprised markets over the weekend by announcing his plan to step down as CEO of Berkshire Hathaway at the end of this year. The news sent shares tumbling, with Class B stock (BRK-B) dropping over 5% to $512 on Monday.

The board unanimously approved Buffett’s choice of Greg Abel as his successor. Abel, who currently oversees Berkshire’s non-insurance businesses, will officially take the reins on January 1, 2026.

“I would still hang around, and could conceivably be useful in a few cases, but the final word would be what Greg said,” Buffett told shareholders during the company’s 60th annual meeting in Omaha.

Investors seemed caught off guard by the timing. “I think there’s a good portion of the investor base who just thought that Warren was going to keep running the company until he passed away,” said Edward Jones senior analyst Kyle Sanders.

Buffett will remain as chair of the board, offering continuity during the transition.

Berkshire Hathaway Inc. (BRK-B)

Buffett’s Extraordinary Legacy

Buffett’s impact on Berkshire can’t be overstated. Since taking control in 1965, he transformed the company into one of the world’s most profitable firms. Under his leadership, Berkshire’s per-share value compounded at 19.9% annually, nearly double the S&P 500’s 10.4% average.

This performance resulted in a staggering 5,502,284% return for shareholders over his 60-year tenure.

Year to date, Berkshire shares are up more than 13%, outperforming the S&P 500, which is down 4%.

Buffett built his fortune by spotting undervalued companies, investing for the long term, and practicing patience. His approach created a devoted following of investors who study his methods.

At Saturday’s meeting, Buffett received an ovation after sharing his retirement news. “The enthusiasm shown by the audience’s response can be interpreted in two ways,” he joked. “But I’ll take it as positive.”

Abel’s Vision and Cash Reserves

Abel, who joined Berkshire in 1999 through an acquisition, has been the designated successor since 2021. However, the specific timeline for the transition wasn’t previously disclosed to investors.

During Saturday’s meeting, Abel spoke extensively about Berkshire’s current prospects, particularly highlighting the company’s cash position. The conglomerate is currently sitting on more than $300 billion in cash.

“We do recognize it as a strategic asset, and it allows us to weather the difficult times and not be dependent on anybody,” Abel said. “We will never be dependent on a bank or some other party for Berkshire to be successful.”

This massive cash reserve has been a point of discussion among analysts. Sanders of Edward Jones maintains a Hold rating on the stock, noting, “For us, deploying some of this cash is really what the stock needs if it’s going to continue to move higher.”

The seventh-largest company in the S&P 500, Berkshire Hathaway boasts a market cap of approximately $1.1 trillion.

Despite his investment success, Buffett was famously skeptical of certain assets. He maintained a particularly critical stance toward Bitcoin, once calling it “rat poison squared” in a 2018 CNBC interview.

As recently as 2023, Buffett described Bitcoin as a “gambling token,” suggesting investors were chasing easy money by putting funds into it.

Interestingly, Buffett’s views on blockchain technology softened over time. In a 2019 CNBC interview, he acknowledged that “blockchain was important,” while still dismissing Bitcoin as “a delusion.”

Throughout his career, Buffett shared wisdom beyond just investment advice. He encouraged people to prioritize working with good mentors over chasing high starting salaries.

“Don’t worry too much about starting salaries, and be very careful who you work for, because you will take on the habits of the people around you,” Buffett said at this year’s shareholder meeting.

He also stressed the importance of finding work you’re passionate about. “I think a happy person lives longer than somebody that’s doing things they don’t really admire that much in life,” he told shareholders.

Buffett urged job seekers to find work “they would select if they had no need for money,” though he acknowledged economic realities might interfere with such a search.

Another key to Buffett’s success was his ability to set boundaries and say no. “The difference between successful people and really successful people is that really successful people say ‘no’ to almost everything,” he once advised.

As for his own future plans, Buffett indicated he has no intention of selling his Berkshire stock as a result of the leadership change.

Abel, meanwhile, appears focused on maintaining the company’s financial independence and strategic flexibility through its substantial cash reserves.

The post Berkshire Hathaway (BRK-B) Stock: End of an Era as Oracle of Omaha Passes the Torch appeared first on CoinCentral.

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Filed under: News - @ May 6, 2025 7:29 am