New York (AFP) – Warren Buffett on Monday confirmed plans to step down as Berkshire Hathaway CEO at year’s end, but said he will keep a “significant amount” of shares in the company for now. The 95-year-old billionaire will hold onto his “A” shares in the conglomerate until Berkshire investors “develop a comfort” with successor Greg Abel, who will become chief executive in January.
“That level of confidence shouldn’t take long,” Buffett said in his annual Thanksgiving letter to shareholders. “My children are already 100 percent behind Greg as are the Berkshire directors.” Berkshire’s “A” shares hold 10,000 times the voting power of “B” shares. Buffett, who holds about 30 percent of total voting shares, is by far the biggest shareholder.
Buffett announced in May he would step down at the end of 2025, a plan met with dismay by rank-and-file investors in Berkshire and beyond who admire the folksy investor. Nicknamed “The Oracle of Omaha,” Buffett is known for shunning get-rich-quick strategies in favor of long-term investing and a knack for explaining his thinking in clear soundbites.
While Buffett generally feels good, “I move slowly and read with increasing difficulty,” he wrote in the latter. “I was late in becoming old – its onset materially varies — but once it appears, it is not to be denied,” said Buffett, who indicated he would stop writing Berkshire’s annual report but would continue releasing an annual Thanksgiving message.
© 2024 AFP
