What Warren Buffett’s Retirement Means for Investors
/By Kelly Doyle
For the past 60 years, Berkshire Hathaway has outperformed the market by a huge margin. From 1965 to 2024, the company delivered a compounded annual gain of 19.9% and an overall gain of 5,502,284%—compared to just 10.4% and 39,054% for the S&P500, respectively1.
This extraordinary performance has been driven with one famous investor at the helm: Warren Buffett. So when the legendary CEO announced he would be stepping down, it marked the end of one of the most remarkable eras in investing history.
As a result, the 2025 Berkshire Hathaway Shareholder Meeting, held on May 5 in Omaha, Nebraska, ended much differently than any previous annual meeting.
Often referred to as the “Woodstock for Capitalists,” the meeting has long stood apart from the typical corporate gatherings of other companies. Buffett usually spends eight hours fielding questions from an audience of more than 20,000 attendees from around the world—covering everything from economic forecasts to life advice for teenagers.
This year’s meeting broke tradition in more ways than one. It ran shorter, lasting just five hours, and wrapped with an unexpected twist. After answering questions throughout the morning, Buffett gave a casual notice: the meeting would end in five minutes, and he had a surprise announcement to make. In fact, only his two children in the room knew what was coming.
Then came the moment that shook the investing world. After an iconic 60-year run as CEO, 94-year-old Buffett announced he would be stepping down. While his retirement wasn’t entirely unexpected given his age, the official word sparked immediate speculation: What would this mean for the future of Berkshire Hathaway? And who would take the helm of one of the world’s most successful—and most watched—companies?
Who Will Be the New CEO?
After hearing the news, the first question on everyone’s mind was: Who will succeed Buffett? The answer is Greg Abel—a long-time Berkshire Hathaway executive with deep roots in the company.
Abel began his career in the early 1990s working for MidAmerican Energy, which later became part of Berkshire Hathaway Energy. Over the decades, Abel rose through the ranks and was eventually promoted to vice-chairman for non-insurance operations. In January 2018, he was appointed to Berkshire’s Board of Directors.
A Canadian native, Abel was publicly identified as Buffett’s successor in 2021 and has appeared beside him for years at previous shareholder meetings. Buffett has consistently praised Abel for his leadership and alignment with the company’s values. As he once stated:
“The directors are in agreement that if something were to happen to me tonight, it would be Greg who’d take over tomorrow.”
Will Abel Run the Company in a Similar Way?
In many respects, yes. Abel deeply respects Buffett’s legacy and is seen as a “culture carrier” at Berkshire Hathaway—someone committed to preserving the company’s long-standing core principles of patience, prudence, and shareholder-first thinking.
While taking questions from the audience, Buffett emphasized that Abel would continue the company’s established investment framework. That said, no successor can truly replicate Buffett’s unique mix of charisma, storytelling, and intuition. Abel is expected to bring his own leadership style: one that’s more hands-on and focused on operations.
One of the biggest questions was how Abel would approach capital deployment. Berkshire Hathaway’s current cash position stands at roughly $300 billion—about 27% of total assets and more than double the 25-year average of 13%2.
At the meeting, both Buffett and Abel clarified that this unusually large cash reserve isn’t a short-term derisking strategy or a cushion to ease Abel’s transition. Instead, it reflects Buffett’s long-held approach: wait patiently for the right opportunity. Until then, the cash stays where it is.
Will Buffett Still Be Involved?
Yes, Buffett made it clear that he isn’t disappearing. He said he plans to remain highly involved and available for major discussions, serving as a valuable resource for the company’s leadership. The Board of Directors met the following day to discuss the specifics of his ongoing role. Buffett also noted that he has no intention of selling any of his Berkshire Hathaway shares.
While the announcement may not have come as a complete shock, it marks the end of an era. For decades, Buffett shared not only investment wisdom but also life lessons, delivered with his trademark wit and humility. His presence—always seated casually between two Coke cans and boxes of See’s candy—defined the spirit of the Berkshire Hathaway annual meeting. And while a new chapter is beginning, Buffett’s influence will continue to shape the company’s future.
A Memorable Buffett Moment: “What’s a Hair Curler?”
Buffett’s famous one-liners are a favored part of the experience at the shareholder meetings. One of the most memorable quotes from this year’s meeting came as Buffett addressed the recent stock market turbulence. He explained that, in the grand scheme of market history, the fluctuations over the past 100 days were relatively minor.
Buffett shared that Berkshire Hathaway’s stock price had dropped by 50% three separate times since he took over the company. Looking ahead, he said that over the next 20 years, we can expect to see a real “hair curler.”
It’s a silly image—and only someone like Buffett could deliver a line like that with such charm and authority.
What This Means for Investors
From a financial planning and portfolio strategy standpoint, Berkshire Hathaway remains a strong, stable holding. The transition to Abel’s leadership does not raise any immediate concerns. On the contrary, it highlights the company’s commitment to thoughtful succession planning—an approach every investor can appreciate.
We’ll continue to monitor how Abel guides the next chapter of Berkshire Hathaway and what it might mean for the broader market and your portfolio.
As always, if you have any questions about your investment strategy or would like to schedule a portfolio review, don’t hesitate to reach out.
Sources:
1. Berkshire Hathaway 2024 Annual Report
2. Berkshire Hathaway 2025 Annual Shareholder Meeting Transcripts on CNBC: https://Buffett.cnbc.com/2025-berkshire-hathaway-annual-meeting/
Past performance is no guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Investing involves risks. Wealthrise Financial Planning is an investment advisor registered with FINRA. This material is provided for informational and educational purposes only. It should not be considered investment advice or an offer to buy or sell securities.
