Warren Buffett, the iconic investor and CEO of Berkshire Hathaway, announced his intention to retire from his leadership role at the end of 2025. This significant transition, detailed in his 2025 annual letter to shareholders, designates Vice Chairman Greg Abel as his successor. Berkshire Hathaway also reported a record-breaking cash reserve of $334.2 billion as of the close of 2024, reflecting the conglomerate's strong financial performance.
Buffett indicated that the majority of these substantial funds will continue to be invested in equities, with a strategic focus on American businesses. Berkshire's significant holdings in five major Japanese trading companies, valued at $23.5 billion by the end of 2024, exemplify this long-term investment strategy. The company also noted a pause in share repurchases during the fourth quarter of 2024, partly due to the 1% excise tax on share buybacks introduced by the Inflation Reduction Act of 2022. Despite this, Buffett reiterated his consistent advice for investors to allocate capital to low-cost S&P 500 index funds, cautioning against shifting away from equities towards bonds or cash due to the stock market's long-term growth potential. Greg Abel, who has been identified as Buffett's successor since 2021, brings extensive experience from leading Berkshire's non-insurance operations, and his strategic vision is anticipated to guide the company forward.