Omaha, Neb. (AP) – Miliar Warren Buffett He shocked a land full of shareholders on Saturday, announced that he will retire at the end of the year, leaving the curtain in a six -decades race at the helm of Berkshire Hathaway, which made him the world’s most influential investor.
Buffett said he will recommend Berkshire Hathaway’s Board On Sunday, the Vice President Greg Abel should replace him.
“I think the time has come when Greg should become the CEO of the company at the end of the year,” said Buffett.
Abel has been Buffett’s designated successor for years and already manages all Berkshire’s non -insurance business. But it was always assumed that it would not take over until after the death of Buffett. Previously, the 94-year-old buffett always said that he did not plan to retire.
Buffett announced the news at the end of a five-hour question and a response period without asking any questions. He said that the only members of the Council they knew were their two children, Howard and Susie Buffett. Abel, sitting next to buffett on stage, had no warning.
Abel returned an hour later without buffett to hold the company’s formal business meeting and responded to the news.
“I just want to say that it could not be more humble and honest to be part of Berkshire as we move on,” said Abel.
Many investors have said that they believe that Abel will do a good job by Berkshire, but it remains to see how good he will be investing in Berkshire cash. Buffett approved it on Saturday, committing to keep his fortune invested in the company.
“I have no intention, zero, to sell a Berkshire Hathaway quota. Finally, I will give it,” said Buffet. “The decision to maintain each quota is a financial decision because I think Berkshire’s perspectives will be better under Greg’s management than mine.”
Thousands of Omaha Arena investors gave Buffett a prolonged permanent ovation after his announcement in recognition of his 60 years at the helm of the company.
During this period, Berkshire almost doubled the y p 500 returns, with an annual growth rate composed of 19.9% compared to the gain of 10.4% of the index.
Buffett was so dedicated to the investors that the markets would move when their investments were disseminated because so many people copied it.
CFRA’s research analyst Cathy Seifert said it was difficult for Buffett to decide to leave.
“It was probably a very difficult decision for him, but it is better to leave your terms,” said Seifert. “I think there will be an effort to maintain an” as usual “environment in Berkshire. This is yet to be determined.”
Abel was hoping to do well
In many ways, Abel has been running much of the company for years. But he has not been managing Berkshire’s insurance operations or decided where to invest all his troops. He will now take these tasks, but the Vice President Ajit Jain will remain to help supervise the insurance companies.
Investment manager Omar Malik, from Hosking Partners, in London, said before Buffett’s announcement that he was not worried about the future of Berkshire under Abel.
“It’s not really (worried). He has had such a long time next to Warren and the opportunity to meet business,” said Malik about Abel. “The question is that he will assign capital as dynamically as Warren? And the answer is that no. But I think he will do a good job with the support of others.”
Cole Smead, from Smead Capital Management, said that it was not surprised that Buffett was demolished after seeing it on Saturday because the 94-year-old was not as clear as in recent years. At one point, he made a basic error in one of his answers. Other places, he left the court while telling stories about Berkshire and his investment without answering the question he asked.
Berkshire executives are well considered by Abel and Buffett to praised their business for years. But it will have difficulty combining Buffett’s legendary performance, and because it does not control 30% of Berkshire’s shares like Buffett, it will not have as much room.
“I think the challenge you will have is whether someone will give you buffett or (ex -vice President Charlie) Munger’s pass card? It’s not an opportunity in the name of God,” said Smead. Buffett always enjoyed a series of shareholders.
Buffett said that Abel could even be a more practical manager than he is and to get more from Berkshire companies. Company managers say they need to be well prepared before talking to Abel because they know he will ask difficult questions.
Steven Check, President of Check Capital Management, said he never thought Buffett would see.
“I didn’t think he would retire while his mind was still working so well, and I didn’t think he would happen at the annual meeting,” said Check. “But I am generally very happy for him.”
Buffett previously warned that Trump’s rates were harmful
Buffett warned of the dire consequences of President Donald Trump’s rates as he told the thousands of investors gathered at his annual meeting that “trade should not be a weapon”, but “there is no doubt that trade can be a war act.”
Buffett said that Trump’s trade policies have increased the risk of worldwide instability by climbing the rest of the world.
“It’s a big mistake in my opinion when you have 7.5 billion people who don’t like it very well, and you have 300 million who are taking care of how they have done,” said Buffett as he addressed the topic of everyone’s mind at the beginning of the Berkshire Hathaway shareholders meeting.
Although Buffett said that it is better for trade to be balanced between countries, he does not think Trump will do it in the right way with his widespread rates. He said that the world will be more secure if more countries are prosperous.
The market crisis does not create great opportunities
Buffett said he simply does not see many attractive prices that he understands these days, so Berkshire is sitting at $ 347.7 billion, but he predicted that a Berkshire day would be “bombed with opportunities that we will be happy that we have cash.”
Buffett said that the recent markets that generated headlines after the Trump’s Tariff announcement last month “is really nothing.” Rejected the recent fall as a relatively small. He quoted when Dow Jones’s industrial average went from 240 the day was born in 1930 to 41 during the Great Depression as a really significant fall in markets. Currently, the industrial average of Dow Jones is 41,317.43.
“This has not been a dramatic bear market or anything of the type,” he said.
Buffett said he has not bought any of the Berkshire shares this year because it also does not seem like they are not a bargain.
Investor Chris Bloomstran, who is president of the Semper Augustus Investments Group, told Gabelli’s Investment Conference on Friday that a financial crisis could be the best for Berkshire because he would create opportunities to invest at attractive prices.
“Berkshire needs a crisis. I mean Bershire thrives in crisis,” said Bloomstran.
Berkshire meeting attracts thousands
The meeting attracts about 40,000 people every year who want to hear Buffett, including some celebrities and well -known investors. Hillary Rodham Clinton also attended this year. Clinton was the last candidate Buffett publicly supported because he has moved away from politics and any controversial topic in recent years for fear of hurting Berkshire companies.
An investor even camped out of the arena at night to be on the front line.
Devan Bisher, 72, said that he has faith in the future of Berkshire and does not plan to sell the shares he began to buy in the 1980’s.
“It was a good train to ride,” Bisher said, “and I’ll stay with him.”
