"When the legendary investor announced in May 2025 that he would step down as CEO of Berkshire Hathaway ( No. 6 on the Fortune 500) effective Jan. 1, 2026, it marked a shift in decades of leadership. Buffett will be succeeded by Greg Abel as CEO, who has been vice chairman of Berkshire's non-insurance operations. Buffett will remain with the company as chairman of the board after the transition."
"He described the criteria of a truly great, enduring business, as understood by him and his longtime business partner, Charlie Munger. The criterion of 'enduring,' he wrote, 'eliminates the business whose success depends on having a great manager...Of course, a terrific CEO is a huge asset for any enterprise...But if a business requires a superstar to produce great results, the business itself cannot be deemed great.'"
"Buffett is obviously a superstar, and it's hard to see any inherent factors, other than Buffett, that have made Berkshire Hathaway so hugely successful. He seems to have chosen excellently with Abel and Berkshire's other top executives. But the world won't know how good they really are until they're on their own."
Buffett will step down as CEO of Berkshire Hathaway effective Jan. 1, 2026, and Greg Abel will assume the CEO role while Buffett stays on as chairman. For six decades shareholders captured Buffett's investment results by owning Berkshire without needing to replicate his methods. The succession prompts questions about whether Berkshire's systems and culture can institutionalize Buffett's approach or whether Buffett's individual abilities were central to past success. Buffett's 1977 criteria argued that truly enduring businesses do not depend on superstar managers. The ultimate test of succession will come when Abel and other executives operate independently.
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