Omaha, Neb. – Omaha, Neb. (AP) – Multimillionaire Warren Buffett A sand full of shareholders surprised on Saturday by announcing that it will retire at the end of the year, causing the curtain in a six -decades race leading Berkshire Hathaway who made him the most influential investor in the world.
Buffet said it will recommend Berkshire Hathaway Board On Sunday, Vice President Greg Abel should replace it.
“I think the time has come when Greg should become the company’s executive director at the end of the year,” said Buffett.
Abel has been the designated successor of Buffett for years, and already manages all Berkshire’s unattainable businesses. But it was always supposed to take care until after the death of Buffett. Previously, Buffett, 94, always said he had no plans to retire.
Buffett announced the news at the end of a five -hour questions and answers without taking any questions about it. He said that the only members of the Board who knew this would be their two children, Howard and Susie Buffett. Abel, who was sitting next to Buffett on stage, had no warning.
Abel returned an hour later without buffett to hold the company’s formal business meeting, and he responded to the news.
“I just want to say that I couldn’t be more humble and honored to be part of Berkshire as we move forward,” Abel said.
Many investors have said that they believe that Abel will do a good job by directing Berkshire, but it remains to be seen how good Berkshire’s cash will invest. Buffett supported him on Saturday by committing to maintain his fortune invested in the company.
“I have no intention, zero, to sell a part of Berkshire Hathaway. Eventually I will give it away,” Buffet said. “The decision to maintain each part is an economic decision because I believe that Berkshire’s perspectives will be better under Greg’s management than mine.”
Thousands of investors in the Omaha Arena gave Buffett a prolonged ovation after their announcement in recognition of their 60 years leading the company.
During that period, Berkshire almost doubled the returns of the SANDP 500, with an annual growth rate composed of 19.9% compared to the gain of 10.4% of the index.
Buffett had such a dedicated follow -up among investors that the markets would move when their investments were revealed because many people copied it.
CFRA’s research analyst, Cathy Seifert, said it had to be difficult for Buffett to decide to resign.
“This was probably a very difficult decision for him, but it is better to leave his own terms,” said Seifert. “I think there will be an effort to maintain an environment ‘as always’ in Berkshire. That has not yet been determined.”
In many ways, Abel has already been executing much of the company for years. But he has not been managing Berkshire’s insurance operations or deciding where to invest his entire cash. Now he will take those tasks, but Vice President Ajit Jain will remain to help supervise insurance companies.
The investment manager Omar Malik from Hushing Partners in London said before Buffett’s announcement that he was not worried about Berkshire’s future under Abel.
“Not really (worried). He has had a lot of time with Warren and the opportunity to meet business,” said Malik about Abel. “The question is, will capital assign as dynamically as Warren? And the answer is no. But I think he will do a good job with the support of others.”
Cole Smead de Smead Capital Management said it was not surprised that Buffett renounces after seeing him on Saturday because the 94 -year -old man was not as sharp as in recent years. At one point, he made a basic mathematical error in one of his answers. In other points, he left the road while telling stories about Berkshire and his investment without answering the question they asked him.
Abel is well considered by Berkshire and Buffett managers has praised his commercial insight for years. But it will have difficulty matching the legendary performance of Buffett, and since it does not control 30% of Berkshire’s actions as Buffett does not have so much room.
“I think the challenge he will have is whether someone is going to give Buffett or (former President Charlie) Mucer’s pass card? It is not an opportunity in the name of God,” said Smead. Buffett always enjoyed a dedicated follow -up among shareholders.
Buffett has said that Abel could even be a more practical manager than him and get more out of Berkshire companies. The company’s managers say they must be well prepared before talking with Abel because they know he will ask difficult questions.
Steven Check, president of Check Capital Management, said he never thought he would see Buffett withdraw.
“I didn’t think he would retire while his mind still works so well, nor did I think what would happen at the annual meeting,” Check said. “But in general I am very happy for him.”
The earliest Saturday, Buffett warned about the serious global consequences of the tariffs of President Donald Trump, while the thousands of investors met at their annual meeting that “trade should not be a weapon”, but “there is no doubt that trade can be an act of war.”
Buffett said Trump’s commercial policies have increased the risk of world instability by angry the rest of the world.
“It is a big mistake in my opinion when you have 7.5 billion people who do not like it very well, and you have 300 million that are falling on how they have done it,” Buffett said as he addressed the issue in everyone’s mind at the beginning of Berkshire Hathaway’s shareholders meeting.
While Buffett said that it is better that trade is balanced among countries, he does not believe that Trump does it in the right way with his generalized tariffs. He said the world will be safer if more countries are prosperous.
Buffett said he simply does not see many investments at attractive prices that he understands these days, so Berkshire is sitting at $ 347.7 billion in cash, but predicted that one day Berkshire will be “bombarded with opportunities for which we will be happy to have cash.”
Buffett said that the recent agitation in the markets that generated headlines after Trump’s announcement last month “really is nothing.” He dismissed the recent fall as relatively small. He cited when the industrial average Dow Jones went from 240 the day he was born in 1930 to 41 during the great depression as a really significant fall in the markets. Currently, the Dow Jones industrial average is 41,317.43.
“This has not been a dramatic bear market or anything like that,” he said.
Buffett said he has not returned any of Berkshire’s actions this year because they don’t seem to be a bargain.
Investor Chris Bloomstran, president of Semper Augustus Investments Group, told the Gabelli investment conference on Friday that a financial crisis could be the best for Berkshire because he would create opportunities to invest at attractive prices.
“Berkshire needs a crisis. I mean Berkshire thrives in the crisis,” said Bloomstran.
The meeting attracts about 40,000 people every year they want to listen to buffett, including some known celebrities and investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate that Buffett retreated publicly because he has moved away from politics and any controversial theme in recent years for fear of hurting Berkshire’s businesses.
An investor even camped outside the sand during the night to be the first in line.
Devan Bisher, 72, said he has faith in the future of Berkshire and does not plan to sell the shares he began to buy in the 1980s.
“It has been a good train to travel,” said Bisher, “and I’m going to stay with him.”
