Warren Buffett Announces Retirement After 60 Years

Warren Buffett sent shockwaves through the business world in 2025 when he revealed it would be his final year as Berkshire Hathaway CEO. The legendary investor penned two of his iconic shareholder letters, briefly became a meme, and built Berkshire's cash pile to more than $350 billion.

In February, Buffett foreshadowed his departure by praising successors Greg Abel and Todd Combs. By late March, Berkshire shares were up 16% while the S&P 500 was down 2%. During the May shareholder meeting in Omaha, Buffett announced he would step down at year-end. He also gifted Berkshire shares worth about $1.4 billion to family foundations.

Buffett and his team struggled to find bargains as stocks marched to record highs, selling a net $11 billion of stocks in the first nine months. The cash pile reached a record $358 billion as of September 30. Buffett unexpectedly built a position in Alphabet worth $4.3 billion. Ahead of his departure, Berkshire announced sweeping management changes.

Warren Buffett penned his yearly shareholder letter in February, foreshadowing his departure by talking up two of his planned successors. He hailed Greg Abel, Berkshire's non-insurance boss and his pick for Berkshire's next CEO, for his honesty and decisiveness. He praised Geico CEO Todd Combs for swinging the auto insurer from a pre-tax underwriting loss of $1.9 billion in 2022 to a $7.8 billion profit in 2024.

Buffett wrote, "Geico was a long-held gem that needed major repolishing," hailing the improvement under Combs as "spectacular." He touted Berkshire's tax payments during his tenure, noting the company had gone from paying zero income tax to almost $27 billion in 2024. This was the most of any US company in history. He urged the federal government to "spend it wisely," saying it should go toward helping people who "get the short straws in life."

Buffett went viral during the market correction in March, as followers lauded his prescience in reducing core positions. He had reduced holdings such as Apple and Bank of America and amassed a record cash pile before stocks slumped. Social media was filled with people parroting Buffett's advice to "be greedy when others are fearful." Users shared memes about him celebrating or being nonchalant about the sell-off.

By late March, Berkshire shares were up 16% for the year while the benchmark S&P 500 index was down 2%. This reflected the conglomerate's appeal as a safe haven. It also highlighted Buffett's reputation for capitalizing on crises. The market correction validated his strategy of building liquidity ahead of volatility.

Tens of thousands of people descended on Buffett's hometown of Omaha in May for Berkshire's shareholder weekend. As usual, Buffett held court for hours in an arena filled with his followers. He hailed Geico's turnaround, defended Berkshire's cash hoard, advocated for free trade, and warned that AI investments could temper returns. He also voiced his confidence in Berkshire and America.

In the closing minutes of the Q&A, Buffett revealed he would step down. "I think the time has arrived where Greg should become the chief executive officer of the company at year-end," he said. Buffett said he would continue to "hang around" at Berkshire and might be useful on occasion. However, he clarified that the "final word would be what Greg said — in operations, in capital deployment, whatever it might be." After a lengthy standing ovation, Buffett quipped that his shareholders were either applauding his contributions or celebrating his departure.

Buffett turned his Thanksgiving message into a love letter to Omaha, reflecting on how lucky he has been in life. He thanked the many people who helped him succeed. The billionaire gifted Berkshire shares worth about $1.4 billion in total to four of his family's foundations. He said he would accelerate his giving as he wanted his children, now in their 60s and 70s, to distribute virtually his entire fortune.

Buffett hailed Abel as a worthy successor, saying he couldn't think of anyone better to "handle your savings and mine." He encouraged readers to learn from their mistakes, choose good role models, and care for others. "When you help someone in any of thousands of ways, you help the world," he wrote. "Kindness is costless but also priceless."

Buffett and his team struggled to find bargains once again in 2025 as stocks marched to record highs. Berkshire sold a net $11 billion of stocks in the first nine months of the year, marking 12 straight quarters as a net seller. It has skipped buybacks for five quarters in a row as well. The stock sales and lack of spending helped increase its cash pile to a record $358 billion as of September 30.

The team made several tweaks to Berkshire's stock portfolio. They continued paring Apple and Bank of America, exited Citigroup, and boosted their Occidental Petroleum stake. They also unexpectedly built a position in Google-parent Alphabet worth $4.3 billion as of September 30. This followed billion-dollar bets on Constellation Brands and UnitedHealth.

Ahead of Buffett's departure as CEO, Berkshire announced sweeping changes to its management team. The conglomerate revealed that Todd Combs had resigned to lead a new investment unit at JPMorgan and advise CEO Jamie Dimon. Berkshire also appointed its first general counsel. It announced finance chief Marc Hamburg would retire in June 2027 after 40 years at the company.

The company disclosed that Abel would be delegating responsibility for more than 30 businesses to NetJets CEO Adam Johnson. Johnson will take on a new role as a divisional president. These changes represent the biggest leadership overhaul in decades. They signal a structured transition as Abel prepares to take the helm.

What did Warren Buffett announce in 2025?
Warren Buffett revealed it would be his final year as Berkshire Hathaway CEO, ending a six-decade run. He announced the decision during the annual shareholder meeting in Omaha.

Who will replace Warren Buffett as CEO?
Greg Abel, Berkshire's non-insurance boss, is Buffett's pick to become the next CEO. Buffett praised Abel for his honesty and decisiveness in his February shareholder letter.

How much cash does Berkshire Hathaway hold?
Berkshire's cash pile reached a record $358 billion as of September 30, 2025. This increase came from selling stocks and skipping buybacks.