Omaha, Neb. (AP) – The esteemed investor, Warren Buffett, was shocked by a square full of his shareholders on Saturday by announcing that he wanted to retire at the end of the year.
Buffett said he will recommend the Board of Directors of Berkshire Hathaway on Sunday that the Vice -Chairman of the Board of Directors will replace him.
“I think the time has arrived as Greg should become the company’s CEO at the end of the year,” said Buffett.
ABL was the appointed Khalifa Pavit for years, and he already runs all insurance companies in Berkshire. But it was always assumed that he would not undertake his duties until Buffett’s death. Previously, 94 -year -old Puffett has always said he had no pension plans.
Buffett announced the news at the end of a five -hour question period without eating any questions on this topic. He said that the only members of the board of directors who knew this matter were his two children, Howard and Soussi Pavite. Abel, who was sitting next to Pavit on stage, had no warning.
ABEL returned an hour after without Buffett to hold the company’s official company meeting, and he responded to the news.
“I just want to say that I cannot be more modest and I am honored to be part of Berkshire and we are advancing.”
Many investors said they believe that ABEL will do a good job that runs Berkshire, but it remains to see how much the quality of his car is in investing Berkshire’s money. On Saturday, Pavite supported the pledge to maintain his wealth, investing in the company.
“I have no intention – zero – to sell one share of Hathaway. I will eventually give it,” said Pavit. “The decision to maintain every share is an economic decision because I believe that Berkshire’s possibilities will be better under Greg more than Greg.”
Thousands of investors in Omaha Arena Buffett gave a long applause after announcing in appreciation of the company’s leadership for 60 years.
Cathy Severt, a CFRA research analyst, said it should be difficult to reach this decision to step down.
“This may have been a very difficult decision for him, but it is better to leave your own conditions,” said Sefrt. “I think there will be an effort to maintain an environment” work as usual “in Berkshire. It is still possible to determine it.
Abel is expected to do a good job
In many respects, ABEL was already running a lot from the company for years. But he did not manage insurance operations in Berkshire or decided to invest all his money. It will now take these tasks, but the Vice Chairman of the Board of Directors will remain to help oversee insurance companies.
Investment manager Omar Malik from Hosking Partners in London said before Puffett’s announcement that he was not concerned about the future of Berkshire under the leadership of ABEL.
Malik said, “It is not really (worried). He spent a long time alongside Warren and an opportunity to know companies.” “The question is whether the capital will be devoted dynamically like Warren? The answer is no. But I think he will do a good job with the support of others.”
Cole Smid from Smead Capital Management said he was not surprised by Buffett while he was stepped down after watching on Saturday because the 94 -year -old was not sharp as in the past years. At one point, he made a basic mathematics error in one of his answers. At other points, he went out of the path while telling stories about Berkshire and investing it without answering the question that was asked.
ABEL is well respected by Berkshire managers, and Pavite praised the work of his acumen for years. But he will face difficulty in matching the legendary performance of Bavate, and because he does not control 30 % of Berkshire’s shares like Pavite, he will not have a lot of space.
“I think the challenge that he will face is if anyone will give him Pavite or (former Vice President Charlie) with a pass pass pass? It is not an opportunity in the name of God.” Buffett always enjoy loyal followers among the shareholders.
Buffett said Abel may be a practical manager than he is and gets more Berkshire companies. Managers inside the company say they should be well prepared before talking to ABEL because they know that he will ask difficult questions.
Stephen Dick, president of Check Capital Management, said he had never believed that he would see Pavite retirement.
“I didn’t think he would retire while his mind is still working well, and I don’t think it would happen at the annual meeting,” said Check. “But in general, I am very happy with him.”
Buffett earlier warned that Trump’s tariff was harmful
Earlier on Saturday, Buffett warned of global severe consequences of President Donald Trump’s tariff, while informing thousands of investors at his annual meeting that “trade should not be a weapon” but “there is no doubt that trade can be a war of war.”
Buffett said that Trump’s trade policies have sparked the risk of global instability through the anger of the rest of the world.
“It is a big mistake in my opinion when you have 7.5 billion people who do not like you well, and you have 300 million people who are wrestling about how to do it,” said Pavite, addressed the issue in the mind of everyone at the beginning of the Hathaway shareholders meeting.
While Puffett said it is better to trade balanced between countries, he does not believe that Trump is about the right way with his wide tariff. He said that the world will be safer if more countries are prosperous.
Souk disturbances do not create great opportunities
Puffett said he did not see many of the attractive investments he understands these days, so Berkshire sits on 347.7 billion dollars in cash, but one day he expected that Berkshire “will be bombed with opportunities, we will be happy because we have the money.”
Buffett said the recent turmoil in the markets that generated newspaper headlines after the Trump tariff was announced last month “nothing really.” The recent decline was rejected as relatively small. He was martyred when the Dow Jones industrial average of 240 went on the day when he was born in 1930 to 41 during the large recession as a significant decline in the market. Currently the Dow Jones Industrial Average Sitting at 41317.43.
“This was not a dramatic bear market or anything like that,” he said.
Buffett said that no Berkshire shared this year either because it does not seem to be a deal either.
Investor Chris Bloomstran, president of the SEMPER Augustus Investments Group, told the Gabelli Investment Friendly conference that the financial crisis may be the best thing for Berkshire because it will create opportunities to invest at attractive prices.
Bloomstran said: “Berkshire needs a crisis. I mean, Berkshire flourishes in the crisis,” said Bloomstran.
The Berkshire meeting attracts thousands
The meeting attracts about 40,000 people every year who want to hear Buffett, including some well -known celebrities and investors. This year, Hillary Rodham Clinton also attended. Clinton has been publicly supported by Pavit because he moved away from politics and any controversial topic in recent years for fear of hurting Berkshire’s work.
One invested until he clings out of the square overnight to be in the first row.
Davan Bishr, 72, said that he trusts the future of Berkshire and is not planning to sell the shares he started to buy in the eighties.
“It was a good train to ride, and I will stay with him,” Bishr said.