Warren Buffett announces his resignation as Berkshire Hathaway CEO by year-end

In a significant move for investors and the financial market, Warren Buffett, the long-serving CEO of Berkshire Hathaway, announced his intention to step down from his role by the end of 2024. This announcement was made in early May 2025, signaling a transformative change for the investment firm that Buffett has led since 1965. Buffett's leadership has resulted in remarkable performance for Berkshire Hathaway, with shares experiencing an extraordinary total growth of 5,502,284% during his tenure, vastly outpacing the S&P 500’s increase of 39,054% over the same period. This achievement highlights Buffett's investment acumen, as he managed to generate a compounded annual return of 19.9%, almost double that of the S&P 500’s 10.4%. Reflecting on his legacy, it is evident that Buffett's strategic decisions have consistently allowed Berkshire to outperform the broader market, demonstrating a unique ability to navigate through market downturns successfully. For instance, in 2022, while the S&P 500 faced a decline of 18.1%, Berkshire Hathaway's shares managed to increase by 4%. Despite some years of underperformance, such as trailing the S&P 500 by 16 percentage points in 2020, Buffett's overall track record is formidable. Expert opinions have consistently recognized his successful value-oriented investment strategy. As Buffett prepares to pass the CEO role to Greg Abel, he will continue to serve as chairman, allowing him to maintain some influence over the company. His decision to step down comes at a time when the broader market has been volatile, yet Berkshire Hathaway's Class A shares recently achieved nearly 19% growth in 2025, reaching an all-time high just before the company's annual meeting. This upward momentum speaks to the ongoing strength of the company's performance under Buffett's final leadership phase. Investors are left to speculate on how the transition in leadership will affect the company’s future. There is intrigue surrounding Greg Abel, Buffett's designated successor, and whether he will be able to continue the impressive legacy established by Buffett over the decades. As Berkshire Hathaway moves forward without Buffett as CEO, the financial community will closely monitor the company's strategy and performance to see if it can maintain its renowned track record of success in the rapidly evolving market landscape.