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Long-time Berkshire Hathaway CEO Warren Buffett announced during the company’s annual meeting on Saturday that he would be retiring from his position at the end of the year, and that he would recommend Greg Abel to the board as his successor.
“The time has arrived where Greg should become the chief executive of the company at year-end,” the 94-year-old investor said during the surprise announcement.
Buffett’s choice of successor was no secret — he had announced in 2021 that he had his eye on Abel to take over the company’s reins. But only Buffett’s children, Howard Buffett and Susan Buffett, who are both Berkshire directors, knew in advance that this would be the year for the leadership transition to take place. Buffett has served as CEO since 1970.
The savvy investor shepherded Berkshire Hathaway through decades of changes, transitioning the company from its textile beginnings into a conglomerate starting back in 1965. HomeServices of America is owned by Berkshire Hathaway Energy, a subsidiary of Berkshire Hathaway.
Over the years, Buffett has become known for his quotable, sound investment advice, which has had an impact on aspiring entrepreneurs worldwide. Thousands of investors and admirers made the pilgrimage to Omaha, Nebraska, each year to attend the company’s annual meeting, which Buffett called “Woodstock for Capitalists.”
Buffett said that he will continue to be active, serving as chairman at Berkshire Hathaway as Abel takes over.
Abel, who is a native of Canada, became involved in Berkshire Hathaway in 1999 when the company invested in MidAmerican Energy, the precursor of Berkshire Hathaway Energy. Abel and David Sokol, Abel’s former boss, were instrumental in building Berkshire Hathaway Energy through a series of acquisitions. In 2018, Buffett promoted Abel as vice chairman and a member of the board, placing him at the head of all noninsurance operations.
During Saturday’s annual meeting, Buffett said he generally prefers to invest in stocks versus real estate, because with multiple parties involved in real estate deals, things can sometimes get messy.
“Well, in respect to real estate, it’s so much harder than stocks in terms of negotiation of deals, time spent and the involvement of multiple parties in the ownership,” Buffett said. “Usually when real estate gets in trouble, you find out you’re dealing with more than just the equity holder.”
“There’s just so much more opportunity, at least in the United States, that presents itself in the security market than in real estate,” Buffett added.
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