Warren Buffett, one of the richest people in the world and one of the most successful investors, said on Saturday that he wants to leave Berkshire Hathaway’'s CEO ’ at the end of the year.
The announcement, made after five hours of question-and-answer time at the company's shareholders meeting on Saturday, came as a big surprise, especially as the 94-year-old man said he had not planned to retire before.
Buffett told the Berkshire Hathaway’'s board on Sunday that he would recommend Vice President Greg Abel’ replace him.
Buffett, “, said ’, "I think it's time for Greg ’ to become CEO ” of the company at the end of the year.
Thousands of investors gathered at the Nebraska’'s annual meeting at the Omaha arena, and after the announcement, Buffett gave ’ a long standing ovation.
The billionaire investor took control of Berkshire Hathaway’in, a textile manufacturer, in 1965.
Over the past 60 years, Buffett has transformed the seemingly unsuccessful textile company into a conglomerate, finding other businesses and stocks sold for less than their value.
His success made him a Wall Street icon and earned him the nickname “Omaha Oracle”, referring to the city of Nebraska where the investor was born and lived.
Who is Greg Abel?
Abel has been Buffett’'s successor for years and currently manages all of Berkshire’'s non-insurance businesses. However, it was always assumed that Buffett’ would not take over until his death.
Buffett finally announced the news without asking any questions. He said the only board member who knew this was coming was his two kids, Howard and Susie Buffett.
Abel’a, who sat next to Buffett’ on stage, was not given any warning. An hour later, this time Buffett returned to respond to the news without being on stage.
I want to say that I cannot be more humble and honored to be part of the Berkshire “ as we move forward, ’ said.
According to some analysts, many investors believe that Abel’ will do a good job managing Berkshire’, but time will tell how good it will be at investing Berkshire’'s money.
CFRA research analyst Cathy Seifert said it should be difficult for Buffett’ to reach this decision.
Seifert, “This was probably a very difficult decision for him, but it's better to leave on your own terms, ” said. “Berkshire’ at ‘I think that efforts will be made to maintain the ’ environment as usual. This is yet to be determined.”
Buffett confirmed Greg’i by promising to continue investing his fortune in the company on Saturday.
Buffett, “Berkshire Hathaway, I have no intention of selling a stake in ’, – zero. I'll give it to others eventually, ” said.
The decision to hold “Her stock is an economic decision because I think the future of Berkshire’ will be better than mine under Greg’'s management.”
Buffett warns trade is not a weapon
Meanwhile, Buffett, US President Donald Trump, warning of the dire global consequences of ’'s trade tariffs, said “ should not be a weapon of trade.
Buffett said at Saturday's meeting that Trump’'s trade policies have angered the rest of the world, increasing the risk of global instability.
Buffett, “It's a big mistake in my opinion, ”, when there are 7.5 billion people who don't like you very much, and there are 300 million people who praise you for what you've done.
According to the billionaire investor, there is no doubt that “ commerce can be a cause of war.”
Believing that balancing trade between countries is best, Buffett said President Trump didn't think ’ was on the right track with widespread tariffs.
