Greg Abel’s Steady Ascent at Berkshire: Warren Buffett’s Chosen Successor

The elevation of Greg Abel to replace Warren Buffett at the helm of Berkshire Hathaway marks a significant milestone for the company. Abel, a native Canadian, has earned Buffett’s trust through his commitment to the company’s culture, long-term vision, and prudent financial management.

Buffett announced Abel’s promotion to chief executive officer during Berkshire’s annual meeting last May in Omaha, Nebraska. This announcement took many by surprise, especially those who believed the 95-year-old billionaire would never step down from the conglomerate he has led since 1965. Even Abel was unaware that the announcement was forthcoming.

The promotion had been anticipated since May 2021, when the late Berkshire Vice Chairman Charlie Munger hinted that Abel was the board’s choice for the CEO position. Despite this transition, Buffett will continue to serve as chairman.

At 63, Abel joined Berkshire in 2000 when it acquired MidAmerican Energy. He later transformed the now-renamed Berkshire Hathaway Energy unit into one of the largest power providers in the central and western United States. Since 2018, Abel has served as vice chairman, overseeing Berkshire’s non-insurance businesses, which include the BNSF railroad, various chemical and energy companies, and retailers like Fruit of the Loom and See’s Candies.

Ajit Jain, 74, who also holds the title of vice chairman, continues to oversee Berkshire’s insurance businesses. Although investors had long viewed Jain as a potential CEO candidate, Buffett has indicated that Jain prefers to remain in his current role.

Berkshire, through Buffett’s assistant, declined to comment on the transition, noting that Buffett had previously discussed Abel in a November 10 letter to shareholders. Both Buffett and Abel were unavailable for interviews.

In the lead-up to Abel’s takeover, the company announced a management shakeup. As part of this transition, Abel will hand direct oversight of Berkshire’s 32 consumer products, service, and retailing businesses to Adam Johnson, who will also continue to manage the NetJets luxury plane unit. Additionally, Nancy Pierce has been elevated to run GEICO, replacing Todd Combs, who has moved to JPMorgan Chase as a director. Berkshire also appointed a new chief financial officer and its first-ever in-house general counsel.

Michael Ashley Schulman, chief investment officer at Running Point Capital in El Segundo, California, noted that Abel is positioning “trusted lieutenants and fresh talent to balance continuity with modernization at Berkshire.”

Buffett Calls Abel a ‘Great Manager’

Abel operates out of Des Moines, Iowa, approximately 135 miles (217 km) east of Omaha, where Berkshire is expected to remain headquartered. He is known to be a more hands-on manager than Buffett but has expressed his intention to respect Berkshire’s culture of allowing operating businesses to run largely autonomously.

Many Berkshire managers have praised Abel for being knowledgeable and compassionate, with a remarkable ability to listen. However, his public persona remains relatively low-key compared to Buffett’s. Abel lacks the showmanship and charisma that Buffett is known for, having lent his image to Coca-Cola cans and appeared on shows like “All My Children” and “The Office.”

In his November letter, Buffett referred to Abel as “a great manager, a tireless worker, and an honest communicator,” expressing his hope for Abel’s extended tenure.

For a Hockey Fan, an Ice Bucket

Born and raised in Edmonton, Alberta, Abel is a lifelong hockey fan and graduated from the University of Alberta in 1984. He began his career in accounting with PricewaterhouseCoopers before moving to CalEnergy, a geothermal energy firm.

Joining MidAmerican Energy in 1992, he became chief in 2008. Abel benefited from the unique ability of utilities to retain earnings for reinvestment, rather than paying out dividends. This aligns with Buffett’s preference for businesses that invest in themselves or acquire new companies.

Under Abel’s leadership, Berkshire Hathaway Energy has expanded aggressively into renewable energy and controls a significant U.S. residential real estate brokerage. Abel owns nearly $170 million in Berkshire stock, a substantial amount for a CEO, although some investors believe he should increase his holdings. He could become a billionaire after receiving $870 million in 2022 when Berkshire acquired his 1% stake in Berkshire Hathaway Energy.

Abel has also shown he can have fun; in 2014, he participated in the Ice Bucket Challenge to raise awareness for amyotrophic lateral sclerosis (ALS), enthusiastically giving a thumbs-up after being drenched by a Berkshire Hathaway Energy employee.

The elevation of Greg Abel to replace Warren Buffett at the helm of Berkshire Hathaway marks a significant milestone for the company. Abel, a native Canadian, has earned Buffett’s trust through his commitment to the company’s culture, long-term vision, and prudent financial management.

Buffett announced Abel’s promotion to chief executive officer during Berkshire’s annual meeting last May in Omaha, Nebraska. This announcement took many by surprise, especially those who believed the 95-year-old billionaire would never step down from the conglomerate he has led since 1965. Even Abel was unaware that the announcement was forthcoming.

The promotion had been anticipated since May 2021, when the late Berkshire Vice Chairman Charlie Munger hinted that Abel was the board’s choice for the CEO position. Despite this transition, Buffett will continue to serve as chairman.

At 63, Abel joined Berkshire in 2000 when it acquired MidAmerican Energy. He later transformed the now-renamed Berkshire Hathaway Energy unit into one of the largest power providers in the central and western United States. Since 2018, Abel has served as vice chairman, overseeing Berkshire’s non-insurance businesses, which include the BNSF railroad, various chemical and energy companies, and retailers like Fruit of the Loom and See’s Candies.

Ajit Jain, 74, who also holds the title of vice chairman, continues to oversee Berkshire’s insurance businesses. Although investors had long viewed Jain as a potential CEO candidate, Buffett has indicated that Jain prefers to remain in his current role.

Berkshire, through Buffett’s assistant, declined to comment on the transition, noting that Buffett had previously discussed Abel in a November 10 letter to shareholders. Both Buffett and Abel were unavailable for interviews.

In the lead-up to Abel’s takeover, the company announced a management shakeup. As part of this transition, Abel will hand direct oversight of Berkshire’s 32 consumer products, service, and retailing businesses to Adam Johnson, who will also continue to manage the NetJets luxury plane unit. Additionally, Nancy Pierce has been elevated to run GEICO, replacing Todd Combs, who has moved to JPMorgan Chase as a director. Berkshire also appointed a new chief financial officer and its first-ever in-house general counsel.

Michael Ashley Schulman, chief investment officer at Running Point Capital in El Segundo, California, noted that Abel is positioning “trusted lieutenants and fresh talent to balance continuity with modernization at Berkshire.”

Buffett Calls Abel a ‘Great Manager’

Abel operates out of Des Moines, Iowa, approximately 135 miles (217 km) east of Omaha, where Berkshire is expected to remain headquartered. He is known to be a more hands-on manager than Buffett but has expressed his intention to respect Berkshire’s culture of allowing operating businesses to run largely autonomously.

Many Berkshire managers have praised Abel for being knowledgeable and compassionate, with a remarkable ability to listen. However, his public persona remains relatively low-key compared to Buffett’s. Abel lacks the showmanship and charisma that Buffett is known for, having lent his image to Coca-Cola cans and appeared on shows like “All My Children” and “The Office.”

In his November letter, Buffett referred to Abel as “a great manager, a tireless worker, and an honest communicator,” expressing his hope for Abel’s extended tenure.

For a Hockey Fan, an Ice Bucket

Born and raised in Edmonton, Alberta, Abel is a lifelong hockey fan and graduated from the University of Alberta in 1984. He began his career in accounting with PricewaterhouseCoopers before moving to CalEnergy, a geothermal energy firm.

Joining MidAmerican Energy in 1992, he became chief in 2008. Abel benefited from the unique ability of utilities to retain earnings for reinvestment, rather than paying out dividends. This aligns with Buffett’s preference for businesses that invest in themselves or acquire new companies.

Under Abel’s leadership, Berkshire Hathaway Energy has expanded aggressively into renewable energy and controls a significant U.S. residential real estate brokerage. Abel owns nearly $170 million in Berkshire stock, a substantial amount for a CEO, although some investors believe he should increase his holdings. He could become a billionaire after receiving $870 million in 2022 when Berkshire acquired his 1% stake in Berkshire Hathaway Energy.

Abel has also shown he can have fun; in 2014, he participated in the Ice Bucket Challenge to raise awareness for amyotrophic lateral sclerosis (ALS), enthusiastically giving a thumbs-up after being drenched by a Berkshire Hathaway Energy employee.