Warren Buffett to step down as Berkshire Hathaway CEO

Buffett, 94, made the surprise announcement during Berkshire’s annual shareholder meeting in Omaha, Nebraska, where he was met with a standing ovation. He recommended to the company’s board that Chairman Greg Abel be appointed CEO.

“I think the time has arrived where Greg should become the Chief Executive Officer of the company at year end,” Buffett said.

The decision, which contradicts Buffett’s past assurances that he had no plans to retire, was known only to two of his children who serve on the company’s board, Howard and Susie Buffett. Even Abel, who sat beside Buffett on stage, was reportedly unaware the announcement would be made.

While Buffett plans to step down from the top role, he said he would continue to “hang around” to offer advice, but emphasized that final decisions would be made by Abel. Buffett and Abel told CNBC they plan to meet Sunday to determine what Buffett’s formal role with the company will be going forward.

Despite stepping down, Buffett confirmed he would maintain his personal investment in Berkshire.

“I have no intention—zero—of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said Saturday. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine.”

Buffett’s announcement came after remarks criticizing the Trump administration’s trade policies. He warned that the use of tariffs increases the potential for global instability, saying “trade should not be a weapon” and “there's no question that trade can be an act of war.”

“It's a big mistake in my view when you have 7.5 billion people who don't like you very well, and you have 300 million who are crowing about how they have done,” Buffett said.

While acknowledging the need for fair trade, Buffett argued the Trump administration’s approach had not properly addressed global trade imbalances. “We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best,” he said.

With an estimated net worth of $168 billion, Buffett remains one of the richest individuals in the world. He has long maintained that he does not intend to leave his entire wealth to his children and instead plans to give most of it away, a report by The Daily Mail noted.

“I've never wished to create a dynasty or pursue any plan that extended beyond the children,” Buffett has previously stated. “I know the three well and trust them completely. Future generations are another matter.”