Buffett resigned as CEO of Berkshire Hathaway at the end of the year, ending the 60-year run, where he said he became an influential and iconic part of the US economy.
Berkshire Hathaway reaches a historic $1 trillion market value
Warren Buffett’s Berkshire Hathaway has become the first non-technical US company to reach a market value of $1 trillion.
Straight Arrow News
In a surprising announcement on May 3, Warren Buffett said he would resign at the end of the year as CEO of Berkshire Hathaway, ending a 60-year era in which billionaires became an influential and iconic part of the US economy.
Buffett made the announcement at the end of Berkshire Hathaway’s annual shareholders meeting in Omaha, Nebraska.
Greg Abel, 62, who was expected to be appointed CEO when Buffett retired, should take over at the end of the year. “I think it’s time for Greg to become the company’s chief executive at the end of the year,” said Buffett, 94.
Buffett said Abel and other members of the Berkshire Committee (apart from his children, Susan and Howard) had not noticed his plans before the announcement, and he had “spring up” this with them.
“I’m still hanging out and in some cases it might be useful, but the last thing that Greg said,” Buffett said.
The news was filled with standing ovations by the crowd at Chi Health Center in Omaha.
Participants laughed when Buffett said.
Abel joined Berkshire Hathaway’s board of directors in 2018 as vice-chairman of the non-insurance business, overseeing many of the conglomerate’s many subsidiaries, including BNSF Railway and all Berkshire utility companies, retail and manufacturing companies.
Buffett said the board could hold a meeting on May 4th to discuss his recommendations.
Buffett: “Extraordinary Luxury” Helming Berkshire Hathaway
Buffett’s decision to step down has thwarted a surprising 60-year-old 60 years of operation, turning Berkshire from a failed textile company into a huge, $1 trillion conglomerate with companies in the US economy.
“I realized I was in this position to run the kind of company I wanted to run, and that’s an extraordinary luxury,” Buffett said.
“No one like Warren was, and countless people, including myself, were inspired by his wisdom. Cook said Buffett was leaving Berkshire with a good hand with Abel.
The news came as a clear shock to shareholders.
According to NBC News, Berkshire board director Ron Olson said:
CFRA research analyst Kathy Seyfert told The Associated Press that there are efforts to maintain a “normal business” approach in Berkshire.
“This was probably a very tough decision for him, but it’s better to leave on your own terms,” Seyfert said.
Contribution: Reuters