Warren E. Buffett has been at the forefront of American capitalism for decades as the chief executive of Berkshire Hathaway, the conglomerate he built into a $1.1 trillion colossus.
By the end of the year, he is preparing to give up that role.
Mr. Buffett said at the company’s annual shareholder meeting on Saturday that he plans to ask Berkshire’s board to approve making Gregory Abel, his heir apparent, the chief executive by the end of the year.
Mr. Abel would have “the final word” when it comes to the company’s operations, how it invests and more, Mr. Buffett, 94, told the tens of thousands of Berkshire shareholders at the meeting in Omaha.
But Mr. Buffett added that he “would still hang around and conceivably be useful in a few cases.” He will remain chairman of Berkshire — turning that role over to his son Howard Buffett upon his death — and remains the single biggest shareholder in Berkshire, with a roughly 14 percent stake that is worth about $164 billion.
Mr. Buffett’s plan — which he said had been known only to two of his children who sit on the company’s board, Howard and Susan Buffett — was greeted by a minute-long standing ovation by Berkshire shareholders Mr. Abel looked surprised by his boss’s announcement and then stood up and started clapping. (Afterward, several board members attending Berkshire’s meeting hugged each other.)
If the board approves the plan, it would mark the end of an era for one of the most successful companies in modern capitalist history, and one of its most famous investors. Mr. Buffett has amassed a Midas-like fortune by being a savvy stock picker, buying up huge companies and assembling a conglomerate that runs a huge insurance operation, a major railroad and dozens of consumer companies as well as oversees a vast stock portfolio.
Among Berkshire’s most notable holdings are the auto insurer Geico, the BNSF railroad, the power utility Berkshire Hathaway Energy, Dairy Queen, See’s Candies, Fruit of the Loom, the paint company Benjamin Moore and the private jet company NetJets.
Together, those businesses helped Berkshire grow a cash hoard that now sits at nearly $348 billion, more than the stock market valuation of McDonald’s.
The financial firepower of Berkshire has made Mr. Buffett one of the most influential businessmen in the world, giving his pronouncements on many topics, including politics, great weight. That included his criticism of President Trump’s trade policies as a mistake: “Trade should not be a weapon,” Mr. Buffett said. “I don’t think it’s right and I don’t think it’s wise.”
Mr. Buffett’s comments on tariffs were far from his first foray into politics over the years: A Democratic supporter, his name was attached to a proposal by former President Barack Obama that would have raised taxes on millionaires. But Mr. Buffett has kept a low profile for months, and even on Saturday he did not mention Mr. Trump by name.
Mr. Buffett’s plan would complete one of the most-watched leadership transitions in corporate America. For years, he faced questions about who could take over Berkshire, a uniquely complicated business, and a number of executives had been floated as his successor.
But in 2021, Mr. Buffett finally confirmed that it would be Mr. Abel, 62, who joined the Berkshire fold when the company bought his energy business in 1999. Since then, the Canadian executive has risen through the ranks, turning what is now called Berkshire Hathaway Energy into one of America’s biggest power producers.
He is currently the vice chairman of Berkshire’s businesses other than insurance, while oversight of the conglomerate’s behemoth insurance operations has remained with Ajit Jain, a longtime Buffett lieutenant. Mr. Buffett and other executives have professed their belief that Mr. Abel could maintain Berkshire’s culture after Mr. Buffett stepped off the stage.
“Greg is ready,” Ronald L. Olson, a longtime Berkshire director who is stepping down, told CNBC after Mr. Buffett’s announcement on Saturday.
Mr. Olson added that he hoped Mr. Buffett could serve as a valuable sounding board for Mr. Abel, much as Charles T. Munger, Mr. Buffett’s longtime business partner who died in 2023 served.
Together, Mr. Buffett and Mr. Munger entertained investors and more — notably at the Berkshire annual meetings, now in their 60th year — with a sort of vaudeville act, Mr. Buffett as the wry optimist and Mr. Munger as the sharp-tongued pessimist.
That said, Berkshire’s latest financial report card underscored the complications that Mr. Abel will confront as chief executive.
The news about Mr. Buffett came as Berkshire reported a sharp drop in first-quarter earnings, with operating income, Mr. Buffett’s preferred measure, down 14 percent from the same time a year ago to $9.6 billion. Using generally accepted accounting principles, Berkshire reported a nearly 64 percent drop in net income, largely because of paper investment losses.
But while markets have grown much more volatile in response to Mr. Trump’s whipsawing approach to trade, Mr. Buffett professed little worry about the effects of that volatility on Berkshire. “It’s really nothing,” he told shareholders, suggesting that riding out market vicissitudes was part of stock investing.
The company reported that a “majority” of its businesses had lower sales and earnings in the first three months of the year, particularly in insurance underwriting income, which was hit by losses tied to the California wildfires.
In a regulatory filing on Saturday, Berkshire warned that Mr. Trump’s trade policies were generating “considerable uncertainty,” which could affect the company’s operating results. “We are currently unable to reliably predict the potential impact on our businesses, whether through changes in product costs, supply chain costs and efficiency, and customer demand for our products and services.”
And Berkshire’s cash pile grew to $347.7 billion, a record, reflecting that Mr. Buffett has not found the kind of blockbuster investment opportunities that helped put Berkshire on the map. In the past, he has acknowledged that given Berkshire’s size, it is nearly impossible now for Berkshire to find deals that could meaningfully augment its earnings.
During his question-and-answer session with shareholders at the annual meeting on Saturday, Mr. Buffett acknowledged stocking up on cash to prepare for any potential buying opportunity. He revealed that he had weighed a potential $10 billion investment — but later refused to elaborate.
Berkshire continued to be a net seller of stocks, selling $4.68 billion worth of equity in the quarter, compared with $3.18 billion in purchases.
One matter that Mr. Buffett did not directly address on Saturday is what would happen to Todd Combs and Ted Weschler, whom he hired more than a decade ago to help pick stocks for Berkshire. The two have been widely expected to become Berkshire’s stock pickers after Mr. Buffett steps away, though Mr. Combs has also become the chief executive of Geico.
A number of prominent corporate and business leaders were on hand on Saturday, including the Microsoft co-founder Bill Gates, Tim Cook of Apple (which is one of Berkshire’s biggest stock holdings) and the billionaire financier William A. Ackman. Two first timers, Hillary Rodham Clinton and Priscilla Chan, the wife of Meta’s chief executive Mark Zuckerberg, were also present.
Andrew Ross Sorkin contributed reporting.
