(Bloomberg) – Warren Buffett, who turned Berkshire Hathaway Inc. into a company valued at more than US $ 1.16 billion and itself in a billionaire famous for its insight for investments and their occurrences, will leave office at the end of the year after six decades at the head of the conglomerate.
Greg Abel, Vice President of Operations not related to insurance, will be responsible for the conglomerate after the approval of the Board of Directors, Buffett announced, 94, on Saturday at the Annual Board of Shareholders of the Company in Omaha, Nebraska. He said the Board of Directors plans to meet on Sunday.
The announcement surprised the Board of Directors and even Abel, who, although he was pointed out as a successor to Buffet, did not know that the news would be announced at the end of the annual board.
“That is the news of the day,” said Buffett. “Thank you for coming.”
Berkshire grew aggressively for decades with Buffett as president and executive director, as he chose the acquisitions and actions for the company’s portfolio along with his trusted advisor and vice president, Charlie Muger, who died in 2023 at 99. The conglomerate acquired a disconcerting variety of businesses, which, as buffet used to say, reflected the US economy as a whole. Betting on Berkshire, he said, was to bet on the United States.
“The world is Berkshire’s oyster, a world that offers us a range of opportunities far beyond those that openly open to most companies,” said Buffett in his annual letter published in 2015.
Buffett had influence on other executive directors and some presidents, and was able to attract tens of thousands of shareholders to OMAHA every year for the Annual Board.
His success as a investor, with an annual gain composed of 20% in Berkshire’s shares between 1965 and 2024, compared to 10% of the S&P 500, gave him the power to move actions and helped him close lucrative agreements with Goldman Sachs Group Inc. and General Electric Co. in times of crisis.
Buffett began to manage money when he was young, a disciple of Benjamin Graham’s investment style. He entered the business world more when his buffet partnership Ltd. bought Berkshire actions. In 1965, he took control of the rest of the business.
Composed mainly of textile companies in difficulties that would end up disappearing, Berkshire became the base of Buffett’s current giant. Little by little, he built and acquired companies in various sectors, including insurance, which provided liquidity, or “flotation”, to support their investment strategy.
Currently, Berkshire owns business ranging from the BNSF railway company to the GEICO car insurer, through extensive energy operations and even retailers such as Dairy Queen and See’s Candies. Its set of companies generated US $ 47.4 billion of annual operational profits in 2024. Buffett also built the sharing portfolio, filling it with gigantic bets in companies such as Apple Inc. and American Express, and offering Berkshire another way to participate in business earnings that were not of their property.
Nota Original: Buffett to Step Down Following Six-Decade Run Atop Berkshire (2)
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