Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has announced his decision to step down from his role at the end of the year, marking the end of a remarkable 60-year tenure. At 94 years old, Buffett revealed that the decision stems from his acknowledgement of advancing age and its associated challenges. He made the announcement at Berkshire Hathaway's annual shareholder meeting.

Buffett explained to The Wall Street Journal that there wasn't a specific "magic moment" that triggered his decision, but rather a gradual realization that the effects of aging had become "irreversible". He cited instances of losing his balance, struggling to recall names, and finding it increasingly difficult to read the newspaper as contributing factors. He also noted that his designated successor, Greg Abel, was able to accomplish more in a day than he could.

Despite stepping down as CEO, Buffett will remain the chairman of Berkshire Hathaway. He also intends to continue working from the company's Omaha office. "I'm not going to sit at home and watch soap operas," Buffett quipped, emphasizing that his interests and investing acumen remain intact. He also stated he has no plans to sell his Berkshire Hathaway shares.

Greg Abel, 62, currently the vice chairman of non-insurance operations at Berkshire Hathaway, will assume the CEO role on January 1, 2026. Abel has been with Berkshire Hathaway for 25 years and was named as Buffett's eventual successor in 2021. Buffett has expressed full confidence in Abel's capabilities, stating that "the prospects of Berkshire will be better under Greg's management than mine". He has also praised Abel's energy, business acumen, and investment skills. Abel has stated that he intends to continue the investment philosophy and values that have guided Berkshire under Buffett.

The announcement has been met with both surprise and support from shareholders and industry leaders. Apple CEO Tim Cook lauded Buffett's legacy and expressed confidence in Abel's leadership. Buffett's departure marks a significant transition for Berkshire Hathaway, a company he transformed from a struggling textile manufacturer into a trillion-dollar conglomerate. The company owns more than 60 companies, including Geico, Duracell, and Dairy Queen, and has major stakes in companies like Apple, Coca-Cola, and American Express.

While the transition signifies a new chapter for Berkshire Hathaway, Buffett's influence and legacy will undoubtedly continue to shape the company's future. His emphasis on value investing, long-term thinking, and ethical leadership has left an indelible mark on the business world.