Warren Buffett announced in 2025 that he would step down as CEO of Berkshire Hathaway, marking the end of an illustrious six-decade tenure. Under his leadership, Buffett transformed the company from a struggling textile manufacturer into a global conglomerate valued at over $1 trillion. His final year included significant milestones, including record cash reserves and strategic investments, leaving a lasting impact on the business landscape.
Strategic Insights and Leadership Transition
In February 2025, Buffett shared his reflections in one of his annual shareholder letters, hinting at his impending retirement. He emphasized the capabilities of his chosen successors, Greg Abel and Todd Combs. Abel, who oversees Berkshire’s non-insurance operations, was highlighted for his integrity and decisiveness. Combs, the CEO of Geico and one of Buffett’s trusted investment managers, received praise for turning Geico’s pre-tax loss of $1.9 billion in 2022 into a profit of $7.8 billion in 2024.
Buffett also used this platform to discuss Berkshire’s substantial tax contributions, noting the company had moved from paying zero income tax to approximately $27 billion in 2024, the highest of any company in the US. He urged the government to “spend it wisely,” advocating for support to those facing difficulties in life.
Market Influence and Public Engagement
In March 2025, during a market correction, Buffett’s investment strategies gained widespread attention. His decision to reduce holdings in major stocks like Apple and Bank of America while amassing a record cash reserve of over $350 billion positioned Berkshire as a safe haven for investors. Social media buzzed with references to his famous adage, urging investors to “be greedy when others are fearful.”
Later in May, Buffett hosted Berkshire’s annual shareholder meeting in Omaha, attended by tens of thousands. In a candid moment, he announced his plan to step down as CEO by the end of the year, naming Abel as his successor. He expressed his intention to remain involved but acknowledged that Abel would have the final say in company operations. Following an enthusiastic standing ovation, Buffett humorously noted the dual interpretations of the audience’s applause—either for his contributions to Berkshire or in celebration of his departure.
Legacy and Philanthropy
Buffett’s Thanksgiving message in 2025 served as a heartfelt farewell to Omaha and a reflection on his life’s journey. He expressed gratitude to those who contributed to his success and announced he would accelerate his philanthropic efforts. In total, he gifted Berkshire shares valued at around $1.4 billion to four family foundations, emphasizing his desire for his children to manage his wealth responsibly.
He continued to endorse Abel as a capable successor, assuring shareholders, “I can’t think of anyone better to handle your savings and mine.” His final messages encouraged individuals to learn from their experiences, choose good role models, and show kindness to others, stating, “When you help someone in any of thousands of ways, you help the world.”
Financial Maneuvers and Management Changes
Throughout 2025, Berkshire Hathaway faced challenges in finding attractive investment opportunities, as stock prices reached record highs. The company sold a net $11 billion in stocks within the first nine months of the year, marking twelve consecutive quarters as a net seller. The ongoing strategy of stock sales contributed to an increase in its cash reserves, which climbed to a record $358 billion as of September 30.
Berkshire made notable adjustments to its portfolio, reducing exposures to Apple and Bank of America while exiting Citigroup. A significant move was the acquisition of shares in Alphabet, valued at $4.3 billion, reflecting Buffett’s adaptability in a changing market landscape.
As Buffett prepared for his exit, Berkshire announced significant changes to its management structure. Todd Combs left the company to join JPMorgan, while Berkshire appointed its first general counsel and announced the retirement of finance chief Marc Hamburg in June 2027. Abel will also delegate responsibilities across more than 30 businesses to Adam Johnson, who will assume the role of divisional president.
Warren Buffett’s final year as CEO encapsulated a remarkable journey marked by strategic investment, leadership development, and a commitment to philanthropy. His legacy will undoubtedly influence future generations of investors and business leaders.
