It’s perhaps one of the greatest examples of “big shoes to fill” in the history of American business. Current Berkshire Hathaway (BRK.A -1.59%) (BRK.B -1.68%) Vice Chairman Greg Abel was officially announced as Warren Buffett’s replacement as CEO of the company.
This monumental change at the top of the investment management powerhouse will take effect on Jan.1, 2026. While Abel has been a known figure for a clutch of Berkshire watchers, it’s safe to say the majority of the public isn’t familiar with him. Bearing that in mind, here are three important things to know about Berkshire’s incoming leader.
1. He’s a veteran Berkshire executive with CEO experience
Unlike other major companies that source their new leaders from professional executive search firms (“headhunters,” in common parlance), Berkshire is hiring from deep within.
Abel has been under the Berkshire umbrella since 2000. That’s when a deal for a majority stake in his employer MidAmerican Energy Holdings was closed by the ever-acquisitive investment management giant for its portfolio of privately held companies. He was already a key figure at MidAmerican, serving as its president.
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Abel was tapped by Berkshire to head the gas and electric utility as its CEO in 2008. In 2011, he became its chairman too and was occupying both roles when the company was rebranded into Berkshire Hathaway Energy in 2014.
Buffett and his team obviously liked Abel’s work, as he continued to climb the corporate ladder. At the start of 2018, he joined Berkshire Hathaway itself as the director and vice chairman of the company’s non-insurance operations, a position he continues to occupy.
2. Buffett picked him to lead Berkshire years ago
Buffett formally announced at Berkshire’s annual meeting in early May that Abel would be the new CEO. That might have been something of a jolt to the general investing world, but it wasn’t to folks who had been following the company for years.
That’s because Abel was flagged as the CEO-in-waiting as far back as 2021. This occurred at Berkshire Hathaway’s annual meeting that year during which longtime Buffett partner and company Vice Chairman Charlie Munger let slip that Abel was on tap to replace the famed investor.
Perhaps feeling obligated to do so to some extent, Buffett confirmed the succession plan in an interview with CNBC the following week. Subsequently, both he and the late Munger indicated high confidence in Abel’s ability to do the job well and do it the Berkshire way. Buffett said of him that “Greg understands capital allocation as well as I do. That’s lucky for us.”
“He will make those decisions, I think, very much in the same framework as I would make them. We have laid out that framework now for 30 years,” he added.
3. He is a lifetime team player
Although Warren is the towering figurehead for Berkshire, much of the company’s success has relied on identifying and nurturing talented managers. After all, since it’s so large and sprawling, Berkshire can’t micromanage each portfolio of businesses. Instead, it relies on the leading executives at those companies.
With his continued climb up the Berkshire food chain, Abel has surely proven to be a capable and contributing member of what’s grown to be a very large team.
It seems that being a team player started early for the executive. A native of Canada, he started playing that country’s favorite sport — ice hockey — early in life, with groups of kids in his neighborhood. As he graduated to more organized teams and leagues, he garnered experience as a member of a squad.
“I believe sport helped me develop my leadership skills,” he’s quoted as saying. “I had a great deal of respect for my coaches, who served as my mentors. At an early age, I felt an obligation to help our team get better and for me that meant being a leader on the team through working hard.”
Succession time coming soon
That hard work and leadership are going to be put to the test once the New Year rolls around. Many eyes will be on Abel to see how he handles being The Next Guy to one of the most celebrated investment prodigies who ever lived.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.