OMAHA, Neb. (AP) — Warren Buffett announced during his annual shareholder meeting on Saturday that he will step down as CEO of Berkshire Hathaway at the end of the year. In his place, he elevated Greg Abel, a 62-year-old Canadian executive, who has been one of Buffett’s top lieutenants for many years.
For the past seven years, Abel has overseen BNSF, Berkshire's railroad, in addition to other brands like See’s Candies and Dairy Queen, along with a variety of manufacturing and retail businesses that Buffett has acquired throughout his tenure. Raised in Canada, Abel learned the value of hard work from a young age, initially redeeming discarded bottles and working for a small company that filled fire extinguishers. He now finds himself at the pinnacle of the investment world.
Berkshire confirmed Abel as Buffett's successor in 2021 after former Vice Chairman Charlie Munger inadvertently revealed the information during the annual meeting. Although Abel has largely remained in the background, shareholders have had opportunities to become familiar with him through joint appearances with Buffett at annual meetings and interviews.
As Berkshire's board prepares to formally approve Abel as the new CEO, expected to occur unanimously, Abel will assume responsibility for the company’s diverse assortment of businesses, which collectively employ nearly 400,000 individuals and manage a massive stock portfolio. Buffett and other board members have commended Abel for his brilliance and his keen understanding of various business operations.
Buffett expressed confidence in Abel’s ability, stating that Berkshire is “so damn lucky” to have him prepared to take over. However, expectations may be tempered, as it will be challenging for Abel to match Buffett's remarkable history of market outperformance. Buffett built Berkshire by executing well-timed deals and stock investments, but the company's significant size makes it increasingly difficult to find opportunities substantial enough to impact its bottom line.
Though Abel has sizable responsibilities ahead, none expect him to completely replicate Buffett’s high-profile accomplishments. Longtime Berkshire board member Ron Olson remarked just days before the announcement that he believed Abel was ready for the role. He noted, “Is he another Warren Buffett? No, there is no other Warren Buffett that I know. But he has so many of the fundamentals of Warren,” praising Abel’s integrity, hard work, and strategic thought process.
Buffett has emphasized the importance of preserving Berkshire’s decentralized culture, which is built on principles of independence, integrity, and trust. Notably, Munger’s comment that “Greg will keep the culture” signaled confidence in Abel’s leadership style. Executives from various Berkshire subsidiaries, including Brooks Running, Shaw Industries, and Borsheims Jewelry, have indicated that Abel is a go-to resource for their strategic queries and operational challenges, underscoring his availability and ability to provide constructive feedback.
Dairy Queen's CEO Troy Bader praised Abel, remarking, “When I think about Greg, he not only has high business acumen, but he has really high business instincts.” Abel has emerged as a competent spokesperson in discussions about utilities and railroads, albeit he typically avoids extensive media engagements. Nevertheless, he shared insights into his formative experiences when he received recognition from the Horatio Alger Association in 2018, describing how his family-oriented upbringing in Edmonton, Alberta, instilled in him a strong work ethic similar to Buffett’s upbringing in Omaha.
Ultimately, Abel attributes his success to hard work, believing that thorough preparation leads to favorable outcomes, a philosophy he applied in various aspects of his life. Residing about two hours from Buffett in Des Moines, Iowa, where he has led Berkshire Hathaway Energy since 2011, he continues to engage in community activities, such as coaching his children's hockey and soccer teams. Given the decentralized nature of Berkshire, there appears to be little incentive for Abel to relocate to Omaha, allowing him to maintain his current residence.
