After nearly six decades at the helm of Berkshire Hathaway, American investor and philanthropist Warren Buffett has stepped down as its Chief Executive Officer (CEO), handing over charge to his successor and trusted lieutenant, Greg Abel.
Previously, the 95-year-old had always maintained he had no plans to retire. His decision in May last year came as a surprise to Abel. According to the Associated Press, Warren’s children, Howard and Susie Buffett, who also serve as board members, knew of his decision.
The czar of investments
Often credited with his sorcery to generate wealth from the stock market, Buffett bought Berkshire Hathaway in 1962 and transformed the once-struggling textile firm into a massive USD 300 billion investment company.
In 1972, he bought See’s Candies for USD 25 million. This investment heaped gold and by 2019, it saw a pre-tax earnings of nearly USD 2 billion.
Another of his genius ideas was the decision to become a major shareholder in Coca-Cola, which proved to be a “forever stock,” driven by the soft drink company’s strong business model of selling concentrates to bottlers, powerful brand, wide distribution network and ability to set prices.
Patience was his virtue
Popularly known as the “Oracle of Omaha,” his approach towards the stock market was patience and not chasing after quick gains. He focused on quality and stressed long-term, value-based investing and sustainable profits.
Warren Buffett was born in 1930 to Howard Buffett, a US Congressman. At the age of 20, he graduated from the University of Nebraska and then studied at Columbia Business School. From there, he attended the New York Institute of Finance to focus on his economics background and soon pursued a business career.
Who is Greg Abel, Warren’s successor
Abel joined Berkshire Hathaway in 2000 when it acquired MidAmerican Energy. Known within his peers as more of a hands-on manager, Buffett had often praised Abel as a “tireless worker and an honest communicator.”
The 63-year-old has been serving as the company’s vice chairman since 2018.
A Reuters report stated he owns about USD 170 million worth of Berkshire stock and his net worth exceeds USD 1 billion, largely due to an USD 870 million sale of his stake in Berkshire Hathaway Energy in 2022.
“I just want to say I couldn’t be more humbled and honoured to be part of Berkshire as we go forward,” Abel said.
