Warren Buffett Says He Will Step Down As Berkshire Hathaway CEO
Key Facts
Buffett closed the meeting by announcing he will step down as Berkshire Hathaway’s CEO by the end of the year, saying Berkshire Hathaway Energy CEO Greg Abel should take over the position.
The 94-year-old business chief, who became CEO of Berkshire Hathaway in 1970, was met with a standing ovation after making the announcement.
It comes as Buffett opened the meeting’s first Q&A session addressing Trump’s tariffs against longtime trade partners, saying “trade should not be a weapon” and that the U.S. “should be looking to trade with the rest of the world.”
Buffett, who characterized tariffs as “an act of war, to some degree,” earlier this year, echoed his statement Saturday and said the U.S. has already “won,” adding it has “become an incredibly important country starting from nothing.”
When asked about America’s strength and status as an economic powerhouse, Buffett remained optimistic, saying, “I would not get discouraged.”
The veteran investor also told shareholders he would like Berkshire Hathaway to have less cash on hand, potentially down to about $50 billion from the whopping $334 billion it reported having at the end of last year.
Buffett was asked to comment on the falling value of the U.S. dollar, which reached a three-year low last month, and said he does not do anything to manage currency risk, telling investors, “We wouldn’t want to be owning anything in a currency we really thought was going to hell.”
Buffett said the market volatility that has dominated the first quarter of 2025 “is really nothing,” later noting “this is not a huge move” in comparison to historic market crashes like the Wall Street crash of 1929.
Forbes Valuation
We estimate Buffett’s net worth at $168.2 billion, making him the fifth wealthiest person in the world behind Oracle co-founder Larry Ellison ($187.9 billion), Meta co-founder Mark Zuckerberg ($206.4 billion), Amazon co-founder Jeff Bezos ($206.7 billion) and Tesla chief Elon Musk ($389.4 billion)
Key Background
Buffett’s comments come as Trump’s tariffs, which include 10% baseline rates against several trading partners and a 145% rate against China, have triggered a volatile market and fears of a recession. The president said Friday a recession in the short-term is “okay,” repeating his argument that the U.S. is in a period of economic transition and will ultimately turn positive. Top economists such as Torsten Slok, the chief economist at asset management Apollo Global Management, have warned the cost of Trump’s tariffs will primarily bear down on consumers, hit small businesses hard and could cause large retailers to go bankrupt. Last month, Morgan Stanley forecasted recession odds at 40%, Goldman Sachs placed predicted 45% odds and JPMorgan Chase gave a 60% chance of a recession over the next year.
Comments
Post a Comment