OMAHA, NEBRASKA – Warren Buffett, the iconic investor and chief executive of Berkshire Hathaway, confirmed in a Thanksgiving letter to shareholders on Monday, November 10, 2025, that he will step down as CEO at the end of the year. The 95-year-old magnate, who transformed a struggling textile mill into a global conglomerate valued at over $1 trillion, will transition to the role of chairman, with his long-designated successor, Greg Abel, set to take the helm as Chief Executive Officer on January 1, 2026.

In the letter, which marks a new format for his widely-read communications, Buffett expressed his full confidence in Abel, who currently serves as the vice-chairman of Berkshire's non-insurance operations. "I can't think of a CEO, a management consultant, an academic, a member of government – you name it – that I would select over Greg to handle your savings and mine," Buffett wrote, assuring investors of a smooth transition. The announcement, while anticipated since Abel was publicly named the successor in 2021, formalizes the end of a nearly 60-year era that saw Buffett, nicknamed the "Oracle of Omaha," become a towering figure in global finance.

Succession and Stability

A key element of the transition plan involves Buffett's substantial shareholding in the company. He has emphatically stated he has "no intention – zero – of selling one share of Berkshire Hathaway." Instead, he will retain his significant holdings of Class A shares to ensure stability during the leadership change. These Class A shares are crucial, possessing 10,000 times the voting rights of Class B shares, a structure that has allowed Buffett to maintain firm control and steer the company with a long-term vision. By holding his stake, Buffett aims to provide Abel with the time and stability needed to gain the full confidence of the market.

While he will retain his shares for now, Buffett also announced an acceleration of his philanthropic plans. On Monday, he detailed the donation of approximately $1.3 billion in Berkshire stock to four foundations run by his children: The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G. Buffett Foundation, and the NoVo Foundation. This is part of his long-standing pledge to give away more than 99% of his wealth.

Implications for Global Markets and Kenya

Buffett's departure is a significant event for global financial markets, where his annual letters and investment strategies have been followed religiously for decades. His leadership through numerous economic cycles has made Berkshire Hathaway a bellwether for the U.S. economy and a symbol of long-term value investing. The transition comes as the conglomerate holds a record cash reserve, recently reported at over $380 billion, presenting a major strategic challenge and opportunity for the incoming CEO, Greg Abel.

For Kenya and the broader East African region, the direct impact of this leadership change is not immediately apparent, as Berkshire Hathaway does not have significant direct operations in the region. However, the indirect consequences are noteworthy. Kenyan investors, both institutional and retail, are increasingly diversifying their portfolios with offshore investments. The stability of global giants like Berkshire Hathaway influences the performance of international markets and Exchange-Traded Funds (ETFs) that are accessible to Kenyans. The smooth transition of power at one of the world's largest companies is a positive signal for global market stability, which is crucial for protecting the value of these international investments.

Furthermore, Buffett's investment philosophy, which champions disciplined, long-term value creation over short-term speculation, offers enduring lessons for the Nairobi Securities Exchange and the regional investment community. As Abel takes leadership, global investors will be closely watching whether he can maintain the culture and performance that defined Buffett's tenure. This transition serves as a critical case study in corporate succession, with potential ripple effects across the global economy that will be felt from Wall Street to Nairobi. Buffett has indicated he will no longer write his detailed annual reports but will continue to share his thoughts in an annual Thanksgiving letter, a new tradition for communicating with the shareholders he has guided for decades.