Warren Buffett’s plans to step down as Berkshire Hathaway’s CEO by the end of 2025 mark a milestone in the $1.1 trillion conglomerate’s history. After nearly six decades as the boss, the 94-year-old “Oracle of Omaha” will be passing on the baton to Greg Abel, his much-groomed replacement. Born in Canada and a Berkshire veteran of more than two decades, Abel faces the daunting challenge of heading a corporate behemoth that moves from insurance and energy to railroads, retail, and consumer goods. His appointment is a marriage of continuity and change that brings together Berkshire’s eternal values with the realities of an economy going global.
Greg Abel’s rise at Berkshire Hathaway
Greg Abel’s rise to the top of the corporate leadership circle started in Edmonton, Alberta, where he was brought up on a work ethic gained from initial activities such as picking bottles and maintaining fire extinguishers. After graduation with a bachelor of arts in accounting from the University of Alberta in 1984, he was articled to PricewaterhouseCoopers to be chartered in accounting before joining the energy industry. His business career reversed in 1992 when he went to work for CalEnergy, a geothermal power producer later renamed MidAmerican Energy. Abel’s business acumen led him to become president of MidAmerican by 2008, the year Berkshire Hathaway purchased the company.
Abel, as a Buffett-owned firm, expanded MidAmerican into Berkshire Hathaway Energy (BHE) by doubling the firm’s profit through value acquisitions like NV Energy and Dominion Energy’s natural gas holdings. By 2018, his tenure had elevated him to vice chairman of Berkshire’s non-insurance operations-a roster of 189 companies with more than $5 billion of quarterly operating earnings. This career track cemented his position as Buffett’s heir apparent, formally confirmed in 2021, when Buffett swore under oath, “If something were to happen to me, Greg would take over tomorrow morning”.
Leadership style: Decentralization and capital discipline
Abel’s style of management exemplifies Berkshire’s hallmark principles: radical decentralization, low bureaucracy, and empowerment of subsidiary leaders to act on their own. Abel showed a capital efficiency flair by his 10-year stewardship of companies such as railroads and energy, offering 13% overall return on investment in 2010-2022-a record that defied the S&P 500. His strategic wisdom was put to test in risk-risk decision-making, i.e., BHE’s $10 billion bet on green energy infrastructure that placed Berkshire on the cutting edge in utilities innovation.
Contrary to Buffett, who famously did business out of a bare-bones Omaha headquarters, Abel will keep his operations based in Des Moines, Iowa, close to BHE headquarters. That speaks to his affinity for Berkshire’s decentralized philosophy and hands-off approach to management. Peers credit him with “business instincts” along with the ability to thrive in tough industries, ranging from private flying (NetJets) to consumer franchise brands (Dairy Queen). Troy Bader, Dairy Queen’s CEO, said, “Greg not only has great business instincts but really, really high instincts-Warren has the instincts, but Greg has a lot of them too.”
Challenges on the horizon
Abel inherits a conglomerate under attack as never before. Berkshire’s sheer size – $348 billion of cash and equivalents as of 2025 – makes market-beating investments impossible, a signature of Buffett’s track record. Analysts question whether Abel can replicate Buffett’s skill at making timely, value-adding acquisitions, particularly during a high-rate environment. Additionally, he will need to bring modernity to operations across Berkshire’s enormous portfolio without undermining its culture of autonomy.
Second among the most critical tests is managing investor expectations. Though Abel’s own operating businesses have fared better than Berkshire’s investment professionals between 2014-2022, shareholders will likely compel him to pursue faster growth in slower-growing businesses like retail. Whether he can cope with changes in the macroeconomy, such as changes towards solar power and AI-driven industries, will also determine how long he lasts.
A new chapter for Berkshire Hathaway
Greg Abel’s reign represents both continuity and change. His strong identification with Berkshire’s thrift, integrity, and long-term vision-habits assures cultural continuity, and his operating discipline positions the firm to tackle 21st-century challenges. With Buffett becoming chairman, Abel’s success will depend on balancing respect for the past with visionary stewardship of the future. In the opinion of Berkshire board member Ron Olson, “He is no Warren Buffett, but he has the fundamentals: integrity, hard work, and strategic brilliance.” The Abel era dawns not in revolution, but in evolution-a testament to the solid foundation Buffett had established.
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