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Berkshire Hathaway CEO Warren Buffett stunned attendees at the conglomerate's annual shareholder meeting Saturday, when he said his anointed successor, Greg Abel, should take over the top spot by the end of the year.
Warren Buffett said Saturday that his anointed successor, Greg Abel, should take over as Berkshire Hathaway CEO by the of the year.
During the end of the a question-and-answer session at the conglomerate's annual meeting, he stunned the audience of shareholders when he said he would make the recommendation to the board of directors at its meeting on Sunday.
"The time has arrived where Greg should become the chief executive officer of the company at year-end, and I want to spring that on the directors, effectively, and give that as my recommendation," Buffett, 94, said.
After he makes his proposal to the board on Sunday, the directors will meet again in a few months and take action, he explained.
"I think they'll be unanimously in favor of it, and that would mean that at year-end Greg would be the chief executive officer of Berkshire and I would still hang around and could conceivably be useful in a few cases."
He added that Abel, 62, didn’t know he would make the bombshell announcement, and that the board didn't either, except for his children who are directors, Susie and Howard.
While Buffett said he plans to be on hand to be helpful, he stressed that Abel will be the chief executive and have the final word, including on operations and capital deployment.
"I will play with a ouija board or whatever in terms of doing things," Buffett quipped, adding that he will not sell any Berkshire Hathaway shares and reaffirmed his plan to give them away gradually.
Berkshire Hathaway under Buffett
Not selling off his shares also represents his vote of confidence in Abel, according to Buffett, who said he thinks Berkshire's prospects will be better under his successor.
After the announcement, he said, "That’s the news hook for the day, thanks for coming,” and received an extended standing ovation from the audience.
Buffett became CEO in 1970 after his investment partnership acquired Berkshire, then a textile business, in 1965. During that time, he has become an iconic investor, with legions of followers who track his stock moves and investing advice, earning him the nickname "the Oracle of Omaha."
He is also the world's fifth richest person, with a net worth of $169 billion, according to the Bloomberg Billionaires Index. And Berkshire's market cap tops $1 trillion as shares have climbed while the company's sprawling array of businesses include the likes of insurer Geico, rail giant BNSF, and fast-food chain Dairy Queen.