Berkshire Hathaway Stock Rises 1.8% Amid 2025 Annual Meeting Insights
To announce his resignation as CEO by the end of this year, Greg Abel to take over, Warren Buffett, the legendary “Oracle of Omaha”, made the historic announcement Berkshire Hathaway annual meeting 2025. The news, which was made from the podium of Omaha’s CHI Health Center on May 3, rippled through the world of finance, driving down the price of Berkshire Hathaway stock (BRK. A, BRK. B) in sharp focus. Buffett, 94, the chairman and chief executive of Berkshire since 1965, said he would keep all of his shares, a vote of confidence that suggests he will cede no power to Abel.
A New Chapter at Berkshire Hathaway
Buffett’s move marks the close of a long chapter for Berkshire Hathaway, a sprawling conglomerate that he turned from a beleaguered textile mill into a $1 trillion empire. Addressing thousands of shareholders at the Berkshire Hathaway annual meeting, Buffett said, “Greg will be the next CEO of the company at year-end,” surprising the board itself, which will vote on the recommendation shortly. The news was greeted with a standing ovation and underlined Buffett’s trust in Abel, aged 62, who has been responsible for non-insurance operations since 2018.
Abel, who has been named in the past as Buffett’s successor, since 2021, will steer a sprawling portfolio of businesses: Among the company’s holdings are Geico, BNSF Railway, Dairy Queen and major stakes in Apple and Coca-Cola. Buffett lauded Abel’s rigor and discipline, saying, “Berkshire’s prospects will be far better with Greg’s stewardship than if the leadership falls to virtually anyone else in the world.” And posts on X echoed such sentiments.One user wrote: “Abel’s ready to carry buffet’s legacy.”
Berkshire Hathaway Stock: Market Reaction After the announcement, Berkshire Hathaway’s shares rose 1 percent in after-hours trading on Wednesday, but were still 15 percent below their February high early in the year.
Shares of Berkshire Hathaway are up 17.5 percent in 2025, even as the S.&P. 500 has fallen 4.5 percent, a reflection of the confidence among investors that the company can withstand prolonged downturns. The firm’s cash pile reached record $347.7bn despite a 14.1% decline in Q1 operating profit to $9.64bn, driven by losses in insurance. Analysts say the stock has been buoyed by Buffett’s strategic sales, including a partial trimming of Apple holdings, and the market’s faith in Abel’s ability to deploy capital profitably.
And Buffett’s commitment not to sell his shares added to the good vibes. “Keeping every share you own of Berkshire is an economic decision because I think Berkshire’s prospects are good,” he said. Investors on X wrote, “Buffett stepping down is big, but Abel’s track record implies BRK will remain a powerhouse.”
Greg Abel: The Next Oracle?
Greg Abel, a Canadian accountant by training, has won Buffett’s trust for his handling of Berkshire Hathaway Energy and his stewardship of Berkshire’s non-insurance businesses, such as BNSF and Brooks Running. Transition Ables, Hands-On Warren Buffett’s daughter, Susie, describes Abel as “brilliant, kind, and unpretentious,” but whereas the hands-on Abel is known for bearing down on his businesses, Buffett takes a lighter, more hands-off approach. “Greg does something about it,” Buffett said, referring to Abel’s active handling of the task, next to his more relaxed one.
Abel’s responsibilities go beyond capital allocation, encompass stock picks and acquisitions, a transition that Buffett confirmed to shareholders at the meeting. 242 “If you can understand a business, you’ll do well with common stocks,” Buffett said, expressing confidence in Abel to oversee Berkshire’s $362 billion stock portfolio. Abel’s desire for some separation of church and state plays into the longevity of the company and Berkshire’s tradition of independence and continuity as was discussed at the Berkshire Hathaway annual meeting 2025.
Challenges and Opportunities Going Forward
Abel will inherit a complicated landscape, with tariffs policies issued by President Donald Trump posing risks to Berkshire’s businesses. Trade wars are a “big mistake,” Buffett said, given the threat they pose for disrupting supply chains and raising costs. Berkshire’s Q1 report said that there was a “substantial uncertainty” associated with the potential policies, but Buffett expressed his usual quickness to praise the U.S. economy and told investors not “to get discouraged with all the negativity.”
With $347.7 billion in cash, Abel has ample firepower for acquisitions or market opportunities, particularly if valuations come off their highs. But Berkshire, which is so big that it cannot repeat its outsized returns of the past, has struggled to keep up, Buffett admitted. Abel’s work will be to reconcile growth with Berkshire’s value-oriented roots — a theme that dominated the Berkshire Hathaway annual meeting.
What’s Next for Berkshire Hathaway?
Investors are getting giddy about the future of Berkshire Hathaway stock as Abel gets ready to take the wheels. The company’s varied mix of businesses, strong balance sheet and Abel’s proven track record as a leader, position it to withstand economic disruption. “Berkshire is built to last,” one shareholder said at the meeting, a view echoed throughout X, where the users lauded Abel’s preparedness.
The transition, though revolutionary, is viewed as an organic evolution for Berkshire. With the backing of Buffett and the performance of Abel, shares of Berkshire Hathaway is a best stock to buy in 2025 for solid gains for years to come.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions.
