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Greg Abel: Succeeding Warren Buffett at Berkshire Hathaway
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Greg Abel has spent over two decades within Berkshire Hathaway, working closely with Warren Buffett and Charlie Munger. Much of that time was spent leading Berkshire Hathaway Energy, where he earned a reputation for operational discipline and long-term thinking. Now, he's set to carry forward their legacy at the helm of one of the world’s most iconic companies.
Key Insights
Values instilled: Early in life, Greg Abel learned the value of hard work, shaped by his parents' example and reinforced through his own experiences.
Career-defining takeover: In 1999, Berkshire Hathaway acquired MidAmerican, setting Abel on a path that would align his career with Buffett and Munger.
Succession ahead: At Berkshire Hathaway's 2025 Shareholders Meeting, Warren Buffett confirmed he would step down later that year, naming Greg Abel as his successor.
Canada, PWC, and CalEnergy
Greg Abel was born in 1962 and raised in Edmonton, Canada. The son of two hard-working parents, he held a range of jobs growing up, from delivering advertising flyers to filling fire extinguishers. He often credits these early experiences with shaping his work ethic and instilling in him the belief that success comes from hard work.
After high school, Abel earned a commerce degree from the University of Alberta, graduating in 1984. He began his career at PWC in Edmonton but soon relocated to San Francisco. There, he eventually joined one of his early clients, a geothermal company called CalEnergy – a move that would mark the beginning of a long and important chapter in his professional life.
CalEnergy – MidAmerican – Berkshire Hathaway Energy
Throughout the 1990s, Abel held several senior executive roles at CalEnergy, helping to position the company for its next phase of growth. In March 1999, the company announced its acquisition of electric utility MidAmerican Energy Holdings and rebranded the combined entity as MidAmerican. Just months later, in October, Berkshire Hathaway acquired a 75% stake in the newly merged business, its first major investment in the energy sector.
“We buy good companies with outstanding management and good growth potential at a fair price, and we’re willing to wait longer than some investors for that potential to be realized. This investment is right in our sweet spot.”
– Warren Buffett, Los Angeles Times (1999).
From Abel's perspective, it's no exaggeration to say that the new ownership would prove life-changing both in the short and long term. Under Berkshire, the former geothermal firm evolved into a global, diversified energy company, growing from fewer than 500 employees to more than 23,000. Abel served as president through the early 2000s, became CEO in 2008, and was named chairman in 2011. In 2014, the company was formally renamed to Berkshire Hathaway Energy.
By 2018, Abel's role had expanded beyond energy. He was appointed to Berkshire Hathaway's board of directors and named vice chairman of non-insurance operations, serving alongside Warren Buffett, Charlie Munger, and Ajit Jain (vice chairman of insurance operations). Working day-to-day with Buffett and Munger, Abel absorbed not only their investment philosophy but also their deeply ingrained principles around capital allocation, management trust, and long-term thinking.
After nearly two decades alongside working for the legendary duo, Abel emerged as the clear successor to Berkshire's iconic CEO. In 2021, Buffett publicly confirmed the succession plan:
“The directors are in agreement that if something were to happen to me tonight it would be Greg who'd take over tomorrow morning.”
– Warren Buffett, CNBC (2021).
Succeeding Warren Buffett
At Berkshire Hathaway's 2025 Shareholders Meeting, Warren Buffett announced that the time had come for Greg Abel to take over as CEO. The transition will officially occur in late 2025, following approval by the company's board of directors – a formality given Buffett's clear endorsement. Buffett will remain as chairman for the foreseeable future.
As CEO, Abel will inherit leadership of a 1.164 trillion dollar company with a track record unmatched in corporate history, shaped over six decades under Buffett's management. He'll also take charge of a balance sheet bolstered by a substantial and steadily growing cash position. Speaking at the meeting, Abel emphasized continuity: “continue to move forward with a very similar philosophy”. He elaborated further:
“We've got a significant set of cash right now, but it's an enormous asset to have that. And that will continue to be a philosophy. Yes, when we can deploy it, we'll deploy it well, and I'll come to that. But equally, we do recognize it as a strategic asset. And it allows us to weather the difficult times and [...] not be dependent on anybody. So again, that will be an investment philosophy. We will remain Berkshire, and we will never be dependent on a bank or some other party for Berkshire to be successful.”
– Greg Abel, at the Berkshire Hathaway 2025 Shareholders Meeting (sourced through Quartr Pro).
In Conclusion
Having worked closely with Warren Buffett and Charlie Munger for over two decades, Greg Abel has absorbed not just their investment strategies but also the values that define Berkshire Hathaway. As he steps into the role of CEO, he carries with him the philosophies that have shaped the company's enduring success. The torch of leadership is passing, but the principles will remain the same.
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