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Warren Buffett will step down as CEO at the end of this year.
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The Board voted unanimously for Greg Abel to replace him.
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The transformation should be relatively smooth as Buffett intends to keep around to help with any major decisions.
Shares of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) would fall on Monday. The company's stock lost 4.3% from 11:45 am today and as much as 6.8% earlier in the day. The leg comes down as the S&P 500 lost 0.5% and NASDAQ Compound Lost 0.7% on the day.
Warren Buffett, the legendary investor And the head of Berkshire Hathaway asked the Board to replace him as CEO at the company's annual shareholder meeting on Saturday.
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After leading the company for 60 years, Buffett announced that he will step down as CEO. His preferred successor, Greg Abel, will take over on January 1, 2026. Although the announcement by the 94 -year -old to step down was not completely unexpected, his timing.
Speaking to the company's shareholders, Buffett said, “Two of the directors, who are my children, Howie and Susie, know what I'm going to talk about there. The rest of them, this will come as news for me, but I think the time has arrived where Greg should become the company's CEO at the end of the year.”
On Sunday, the Board voted unanimously to accept Abel as President and CEO in keeping Buffett on as Executive Chair. This should help make the transformation smoother, but the loss of Buffett as the Chief Executive sent shares lower on Monday.
The good news for investors is that Buffett and Berkshire Hathaway's leadership has been planning for this for some time. Abel is a highly competent successor that Buffett has mentored to take over.
Buffett also clings around to help Abel with any major procurement decisions. With the recent chaos in the market, it's an elegant time. However, I think that despite the loss of Buffett as CEO, Berkshire is well placed to survive the current storm and take advantage of any major decline.
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