At the head of Berkshire Hathaway for sixty years, he will offer the appointment of his number two as CEO of Berkshire Hathaway to the board of directors this Sunday.
After more than half a century of reign, the revered investor of financial circles Warren Buffett, 94, announced on Saturday his intention to leave at the end of the year the head of his conglomerate Berkshire Hathaway, with which he raised billions. “The time has come for Greg (Abel, the designated successor of the billionaire, editor’s note) to become director general of the company at the end of the year”assured the one nicknamed «l’oracle d’Omaha» During the general assembly of Berkshire Hathaway.
Today vice-president of the group, Greg Abel, 62, was appointed in 2021 to take over from Warren Buffett. “After a long and fruitful career in the world of finance, the magician of Wall Street takes his retirement”commented to AFP the financial analyst Peter Cardillo, of Spartan Capital Securities.
Berkshire Hathaway, a former textile SMEs, has become over the years a gigantic conglomerate under the leadership of Mr. Buffett and is now worth more than $ 1,000 billion in Wall Street, a first for an American group outside the tech sector.
End of an era
“It is one of the greatest investors of our time. His results speak for themselves: he has surpassed the S&P 500 (the reference index to the New York Stock Exchange, editor’s note) over a year, five years, ten years and twenty years » In terms of yield, noted to AFP the financial analyst Art Hogan, by B. Riley Wealth Management.
All his life, Warren Buffett preferred to invest in the long term in stable companies whose accounts he peeled, allowing him to constitute over the decades the fifth world fortune. Its conglomerate today has dozens of companies (from Duracell batteries to American insurer Geico) and actions in carefully selected companies, from Coca-Cola to Bank of America, from Chevron to American Express.
-Warren Buffett had, at the start of the day, estimated that “trade must not be a weapon”, a direct criticism of the trade war launched by Donald Trump since his return to the White House
“It is really the end of an era – the greatest pure investor of these last generations finally ends his career, and he goes in style”welcomed AFP analyst Steve Sosnick, from Interactive Brokers.
On Sunday, the Berkshire Hathaway Board of Directors “Will be able to ask me questions” On this decision, assured Warren Buffett on Saturday. Its members “Will digest” the ad and will be “Unanimous in favor of this decision”he anticipated. The advice of the board of directors will be made formally “In a few months”according to Mr. Buffett.
Customs duties criticism
The investor indicated that even if he transmitted the reins to Greg Abel, which would have “The last word”il “Would remain around” et “Could be useful in a few cases”without specifying what his role would consist of.
This announcement, which took place at the end of the general assembly of Berkshire Hathaway, caused a torrent of applause of the shareholders present on the spot in Omaha, in Nebraska (center). Like a will, Warren Buffett had, at the start of the day, estimated that “Trade should not be a weapon”a direct criticism of the trade war launched by Donald Trump since his return to the White House. “There is no question” As for the fact that touching trade, in particular via customs duties, “Maybe an act of war”had launched the investor.
According to him, Washington should “Seeking to trade with the rest of the world”. “We want a prosperous world” and go in this direction “Won’t be (at).” of the United States, had assured Mr. Buffett.
