Big shoes to fill: Greg Abel takes the reins at Berkshire Hathaway

In later life, Buffett has become a prominent philanthropist, pledging to donate 99% of his wealth, having already given away more than $57bn since 2006, most of it to the Bill and Melinda Gates Foundation. In an interview with The Wall Street Journal, he said he was stepping down owing to the physical effects of ageing. "I didn't really start ageing, oddly enough, until I got close to 90. But once it starts, there's no going back."

Announcing his retirement, Buffett said: "If you don't believe the United States has changed since I was born in 1930, you're not paying attention. We've experienced a wide range of events: the Great Depression, world wars, the development of the atomic bomb, things we never dreamed of when I was born. So, I'm not discouraged by the fact that we haven't solved every problem we've faced."

While Buffett did not explicitly criticise the Trump administration, he warned against imposing tariffs, saying such policies might be considered "an act of war" He added: "I don't think they're right or wise. The more prosperous the rest of the world becomes, it's not at our expense. In fact, we'll be more prosperous too, and our children will feel safer one day."

Enter the accountant

His successor is 62-year-old Abel, who joined the company in 1998, working alongside Buffett for more than two decades and demonstrating his skill in managing complex operations, particularly in the energy sector. In 2007, David Sokol, former chief executive of the energy division, nominated Abel as his successor, praising his negotiation skills and ability to close major deals, such as the acquisition of natural gas pipelines following the collapse of Enron.

Born in Edmonton, Canada, Abel is known for his precise management style and focus on operational efficiency, key attributes given Berkshire Hathaway's culture of simplicity and transparency. Buffett was keen to ensure this culture continued, he said, so his son, Howard Buffett, will assume the role of non-executive chairman.

Abel grew up in a working-class area, earning money through part-time jobs distributing advertising flyers and refilling fire extinguishers. He graduated from the University of Alberta in 1984 having studied accounting. He joined PricewaterhouseCoopers, then CalEnergy, which later became MidAmerican Energy. In the 1990s, he moved to the UK to manage CalEnergy's acquisition of a British utility, impressing Walter Scott Jr, a key shareholder and Berkshire Hathaway board member.

Abel joined Berkshire Hathaway when the firm acquired a controlling stake in MidAmerican Energy in 1999, where Abel was then President. He became chief executive of MidAmerican in 2008, and the company later rebranded as Berkshire Hathaway Energy. In a 2011 interview with Fortune magazine, Scott said of Abel: "Greg's the kind of person who always delivers when you ask him to get something done."

In 2013, Abel told the University of Alberta's New Trail magazine: "I got excited about accounting when I realised how important it was to understand things like income statements and cash flows." His own salary fluctuates year-by-year. In 2024, his base salary was $21mn, but bonuses can be substantial. In 2016, he received $41mn in performance-based compensation tied to the exceptional profitability of Berkshire Hathaway Energy that year.

Skilled dealmaker

Abel is now worth around $1bn and holds company shares worth $175mn, according to Bloomberg Billionaires Index. Most of Abel's wealth comes from the 2022 repurchase of his $870mn stake in Berkshire Hathaway Energy. His share of the overall company pales in comparison to Buffett's holding, which represents 38.4% of the firm's voting shares. Buffett has said he wants his successor to be "someone already extremely wealthy, who isn't concerned about having ten or even a hundred times more than what he and his family need".

Such is his influence, Buffett's actions and words often send the markets scurrying, and Berkshire Hathaway's reductions in Bank of America and Capital One holdings have prompted questions about his outlook for the banking sector—and those firms in particular. As he winds down over the course of 2025, he will be handing over more of the day-to-day running to Abel, who Buffett admires. "I always make time for Greg when he calls, because he brings me terrific ideas," said Buffett in 2013. "He's truly innovative in his thinking and business approach."

The Wall Street Journal described Abel as a "skilled dealmaker," and Buffett's successor is clearly keen to make a mark. "I want to make a difference," he told the Horatio Alger Association in 2018. "I want to give it my all and contribute meaningfully to our company's success. I believe hard work leads to good results. In my studies, in sports, and in business, I've learned that when you put in the effort and come prepared, your chances of success are greater."

All eyes will be on Abel's decisions and direction from January 2026. Buffett recently sold his entire stake in Brazilian digital bank Nubank and famously referred to Bitcoin as "rat poison squared," consistently refusing to acknowledge its value. Whether Abel shares his predecessor's aversion remains to be seen.

Another question will be around the company's war chest. Buffett has long preferred to hold ample liquidity during periods of market exuberance or structural threats. Some analysts interpret Berkshire Hathaway's growing cash pile as a hedge against stubborn inflation, monetary tightening, financial fragility, or geopolitical risks. Whether Abel reads the situation similarly remains to be seen.

Decisions, decisions

One thing is for sure: Abel takes over a behemoth. By the end of 2024, the company posted operating earnings of $47.4bn, with record cash reserves of $347.7bn. It has major holdings in Coca-Cola, American Express, JPMorgan Chase, and Apple. If Buffett's absence dents shareholder confidence, there may soon be mounting pressure on Abel to deploy the company's mountains of cash effectively.

Internally, some think Abel may expand the executive management structure, restructure business divisions, or revise Berkshire Hathaway's executive compensation model or its dual class share structure (which would need shareholder approval). Others ask why the need to tamper with a pay model that has consistently delivered returns for decades.

"Why would they now—just because Warren is leaving—try to impose themselves on a pay structure that might not suit other companies?" asks Dan Walter, a compensation adviser at Alliant Human Capital. "If your shareholders are earning great returns, they rarely care how much the people delivering them are paid."

The challenges are many, but with Buffett's endorsement, Abel seems ably prepared for the responsibility of stepping into the shoes of a true investment legend. Buffett is not just an investor, he is a symbol of financial wisdom and strategic patience. After 60 years leading Berkshire Hathaway, he leaves behind a legacy that will be exceptionally hard to match.