Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, announced during the company’s annual shareholder meeting that he plans to retire as CEO at the end of the year. He named Vice Chairman Greg Abel as his recommended successor — a move long anticipated but still met with surprise by shareholders and Abel himself, who received no advance notice.

Buffett, 94, made the announcement after a five-hour Q&A session in Omaha, Nebraska, receiving a standing ovation from the 40,000-strong crowd for his six decades of leadership. “I think the time has arrived where Greg should become the Chief Executive Officer of the company,” Buffett said. He emphasized his trust in Abel’s ability, stating, “I think the prospects of Berkshire will be better under Greg’s management than mine.”

Abel has overseen all of Berkshire’s non-insurance businesses for several years and is respected by investors as a capable and hands-on leader. Buffett reassured shareholders that he will not sell any of his Berkshire stock and remains committed to the company’s future, pledging to donate his shares eventually.

Buffett also touched on the global economy, warning that protectionist trade policies like tariffs could escalate geopolitical tensions. While critical of the current direction of U.S. trade policy, he reiterated his long-term optimism about America’s economic strength and resilience.

Despite recent market volatility, Buffett noted that Berkshire is sitting on over $347 billion in cash, awaiting better investment opportunities. He explained that the company hasn’t bought back any shares this year due to lack of attractive valuations.

As Berkshire transitions to new leadership, shareholders expressed confidence in Abel’s ability to uphold the company’s culture and performance. Buffett’s departure marks the end of an era, but his legacy of disciplined investing and long-term vision will remain deeply embedded in Berkshire Hathaway.