On May 3, 2025, in a moment that marked the end of an era, Warren Buffett—considered as one of the all-time greats when it comes to investing—announced his plan to retire as Berkshire Hathaway's CEO. At the company's annual shareholder meeting in Omaha, the 94-year-old billionaire said that Greg Abel, Berkshire's Vice Chairman of Non-Insurance Operations, would take over as Chief Executive Officer by the end of the year.

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"I believe the moment has come where Greg needs to become the Chief Executive Officer of the company," Buffett said. Although the move to pass the torch was not entirely surprising, what surprised many was that Buffett's own kids—particularly his son Howard Buffett, a veteran board member—were never in the running for the top executive position.

This move, though thoroughly strategic, exemplifies the sophisticated philosophy Warren Buffett has always adopted: One that is based on merit, stewardship, and long-term retention of a singular corporate culture.

Why not Howard Buffett?

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Middle child of Warren Buffett, Howard Buffett is no stranger to the Berkshire Hathaway universe. More than three decades on the board, Howard has been an integral part of its structure. He has also served in leadership positions at large organisations such as Coca-Cola Enterprises and ConAgra Foods, and he serves as chairman of the Nebraska State Ethanol Board. All this on his resume, and yet his next position at Berkshire is not one of day-to-day operational control but of cultural stewardship—he will become non-executive chairman.

This is not a symbolic position. As non-executive chairman, Howard will be a protector of Berkshire's principles and values, and he will make sure the company's painstakingly constructed culture is preserved. The position involves chairing the board, maintaining oversight, and intervening if any leadership change or deviation from ethics is necessary. It is a position of trust—and one that Warren Buffett feels only someone attuned to the company's soul is capable of filling.

"He is receiving it because he's my son. I'm extremely, extremely, extremely fortunate in the fact that I trust all three of my children," Buffett said in an interview with the Wall Street Journal.

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The rise of Greg Abel

Though Howard will play a supervisory role, Greg Abel, age 62, will assume operational control. The low-key, effective leader, who has long been regarded as the heir, has spent two decades quietly presiding over Berkshire's vast constellation of non-insurance companies, such as energy, utilities, and railroads—sectors at the core of the conglomerate's expansion.

Even Abel himself was surprised by the timing of the announcement. Only the board and Buffett's two children, Howard and Susie, were told in advance. But for those who have been following the company closely, Abel's promotion is a natural, well-thought-out selection. His familiarity with Berkshire's decentralised management and hands-off approach makes him a natural to follow Buffett's leadership style.

Warren Buffett has long declared that he does not subscribe to dynastic wealth. In fact, the $140 billion in Berkshire shares set aside for his three children—Susie, Howard, and Peter—is for philanthropy, not personal gain. This move is in line with Buffett's philosophy that vast wealth must be employed for the benefit of society as a whole.

Nevertheless, his children are nowhere out of sight in the company's management. Susie Buffett was added to the board in 2021, and Peter Buffett has stayed involved in the family's philanthropic activities. Both serve different roles, not as inheritors of an empire, but as custodians of a legacy.

The handoff also coincides with an opportune time—months after the death in November 2023 of Charlie Munger, Warren Buffett's longtime business associate and intellectual equivalent. Munger, along with both men since removed from direct involvement, aided in the formative principles underlying Berkshire Hathaway of today.

Howard Buffett's role as non-executive chairman will be pivotal in this regard. "Fairness, respect, honesty, and transparency," are the values he says he's pledged to maintain.

Susie Buffett has also lauded her brother's dedication, saying he works "110 per cent" when he puts his mind to something. Peter Buffett has also concurred, crediting Howard with having a strong sense of responsibility to maintain not only a business, but a philosophy.

Warren Buffett's decision to hand down the CEO seat to his son is not denial—it's detour. It is a measure of his years-long defiance against nepotism and his emphasis on leadership acquired through merit and not birth. It is simultaneously a testament, however, to his deep level of trust that he has instilled in his children to use his legacy, not his designation.