Billionaire investor Warren Buffett, chairman and CEO of Berkshire Hathaway, jolted thousands of his company’s shareholders attending the annual meeting. He made the announcement that he would not seek re-election at the end of this year. This decision completes a remarkable 60-year trip. Incredibly, during that half-century period, he built Berkshire into one of the world’s most successful conglomerates. At the annual meeting in Omaha, Nebraska, Buffett made a potentially monumental announcement. He named Greg Abel, Berkshire’s Vice Chairman, as his successor to the CEO role.
In his letter to shareholders, Buffett made a promise that he’s not going anywhere, though he does now use a cane to get around. He reasoned that this move would ensure long-term stewardship of the idea within the company. Abel already had direct control over all of Berkshire’s non-insurance businesses. Buffett expressed confidence in Abel’s managerial capabilities, stating, “I think we’ll get a more hands-on manager and that could be a good thing.”
The shareholders’ meeting became a stage for Buffett to speak to the most pressing global economic challenges. He raised alarms about President Donald Trump’s aggressive trade actions, most notably his use of sweeping tariffs. Buffett cautioned that these moves would further stir global volatility and enflame tensions with other countries. He emphasized that “trade should not be a weapon” and cautioned that “there’s no question that trade can be an act of war.”
Buffett further elaborated on his views regarding international trade, stating, “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best.” He critiqued the administration’s approach, mentioning that it is a mistake to alienate other nations: “It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well.”
Buffett explained the cause of recent volatility in the market following President Trump’s announcement of new tariffs. He even suggested the recent market turmoil was overblown, calling it “really nothing.” He continued to advocate for the importance of balancing trade between developed and developing countries, but questioned the wisdom of the current administration’s efforts.
Buffett’s global trade emphasis was another key aspect of the meeting. What they quickly realized, though, is that he shortened the overall question-and-answer period by a couple of hours. Many shareholders made it clear how much they appreciated Buffett’s wisdom and leadership over his lifetime. As one shareholder remarked, “I really like to listen to Warren Buffett — particularly this year with everything that has happened.”
Buffett is never shy about professing his passion for investing. He has no interest in retiring and he flourishes in the worst of times. Now he thinks that time has come for Greg Abel to take over the reins. He wants Greg to be the Chief Executive Officer.
“I think the time has arrived where Greg should become the Chief Executive officer of the company at year end.” – Warren Buffett
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