‘Oracle of Omaha’ steps aside: Warren Buffett retires today as Berkshire CEO after 6 decades of service; Gregory Abel takes operational charge
Warren Buffett stepped down as chief executive of Berkshire Hathaway today, bringing to an end one of the longest and most influential leadership runs in modern corporate history.The transition, announced earlier this year at Berkshire’s annual shareholders’ meeting, hands day-to-day control to vice-chairman Gregory Abel from January 1. Buffett, now 95, will remain chairman and has said he will continue coming to the office, but his withdrawal from operational leadership closes a chapter that reshaped both Berkshire and the wider landscape of American capitalism, according to ET report.What Buffett leaves behind is a company transformed beyond recognition. Once a struggling textile maker, Berkshire is today the ninth-most-valuable company in the United States, the country’s second-largest property and casualty insurer, and a sprawling conglomerate with nearly $700 billion in tradable stocks, bonds and cash, alongside ownership of roughly 200 operating businesses. Those span railroads, utilities and consumer brands, with the annual shareholder meeting in Omaha evolving into a ritual gathering for investors from around the world, ET noted.
An investor who resisted labels
Buffett was often described as the world’s greatest investor, though he resisted easy categorisation. He began with classic value investing, buying companies trading below the accounting value of their assets, and later embraced businesses with enduring competitive advantages capable of compounding value over decades.That evolution produced some of the most successful investments of modern times, including Apple, accumulated between 2016 and 2018 and now Berkshire’s most profitable holding. His emphasis on “economic moats” shaped a portfolio anchored by global franchises across banking, consumer goods and financial services.Yet Buffett’s most consequential insight lay not only in what he bought, but in how he paid for it.
Insurance float as quiet genius
The acquisition of National Indemnity in 1967, followed by GEICO and a major reinsurance operation, gave Berkshire access to insurance float — premiums collected before claims are paid. That pool of capital became the engine behind Berkshire’s growth, financing landmark deals such as the acquisition of BNSF and the company’s large stake in Occidental Petroleum, ET reported.This structure allowed Berkshire to deploy vast sums patiently, without dependence on short-term market funding, reinforcing Buffett’s reputation for disciplined capital allocation.
A succession shaped by continuity
The move to Gregory Abel marks a shift in style rather than a break in philosophy. Abel, who rose through Berkshire’s energy and utilities businesses, inherits a decentralised organisation built on trust and autonomy. Buffett’s hands-off approach — avoiding forced synergies and central control — now stands as a defining legacy Abel must steward.The transition comes amid mixed performance across some operating businesses and renewed scrutiny of Berkshire’s unusually large cash holdings. How that capital is deployed in the years ahead will be closely watched, but the company enters the handover with financial strength few peers can match.
More than a company
Buffett leaves behind more than a balance sheet. He leaves a way of thinking about business — patient, long-term and grounded in common sense. He spoke often about enjoying the work itself, once remarking, “I have a lot of fun doing what I do every day.”He was equally candid about wealth and responsibility, urging restraint and purpose rather than excess. Last month, he accelerated the transfer of Berkshire shares to foundations run by his three children, amounting to about $1.3 billion. In his Thanksgiving letter, he reminded readers that “kindness is costless but also priceless,” ET reported.As Berkshire enters this historic handover, much remains unchanged: the offices, routines and culture endure. What departs is the singular presence that held them together, and the assurance that came with it.
