For decades, Warren Buffett has been the undisputed face of Berkshire Hathaway. Known as the “Oracle of Omaha,” Buffett built the conglomerate into one of the most valuable companies in the world. But with Buffett now 94 and vice chairman Charlie Munger having passed away in 2023, attention has increasingly turned to the man expected to take over one of the most important corporate legacies in history: Greg Abel.
Early Life and Career Beginnings
Gregory E. Abel was born in Edmonton, Alberta, Canada, in 1962. A graduate in commerce from the University of Alberta, Abel started his career at PricewaterhouseCoopers before moving into the energy sector. He joined CalEnergy in the early 1990s, a small utility firm that would later become a major piece of Buffett’s empire. Abel’s sharp business acumen and calm, data-driven approach to decision-making quickly earned him a reputation as a natural leader in a notoriously complex industry.
Rise Within Berkshire Hathaway
Abel’s rise within Berkshire Hathaway began in earnest when MidAmerican Energy, later renamed Berkshire Hathaway Energy (BHE), became a major subsidiary of the company. Buffett saw something rare in Abel: discipline, humility, and an unwavering focus on long-term value creation. Under his leadership, BHE grew into one of the most respected utility companies in the United States, with significant investments in renewable energy and transmission infrastructure. Abel was appointed vice chairman of non-insurance operations in 2018, putting him in direct control of many of Berkshire’s businesses and signaling his growing influence within the company.
Why Buffett Chose Abel
In 2021, Warren Buffett made it official: Greg Abel would be his successor as CEO of Berkshire Hathaway. This wasn’t a flashy or attention-grabbing choice. It was a strategic one. Abel had spent nearly two decades running one of Berkshire’s most critical and capital-intensive segments, showing both operational excellence and a deep understanding of capital allocation—the hallmark of Buffett’s philosophy. Buffett has repeatedly emphasized Abel’s alignment with Berkshire’s values: he’s frugal, avoids corporate theatrics, and focuses intensely on the fundamentals of each business. In Buffett’s own words, “Greg understands Berkshire. He is a first-class human being.”
Management Style and Philosophy
Abel is known for his low-key presence, sharp analytical skills, and strong grasp of decentralized management. Much like Buffett, he does not interfere in the day-to-day operations of Berkshire’s many subsidiaries. Instead, he provides capital, accountability, and strategic oversight, allowing managers to operate autonomously. This hands-off philosophy is core to Berkshire’s culture, and Abel has demonstrated a deep respect for that tradition. He is also known for long meetings, detail-oriented questions, and a strong focus on execution rather than narrative.
Challenges Ahead
Taking over Berkshire Hathaway is no ordinary promotion. Greg Abel will step into the shoes of one of the most iconic capital allocators of all time. The conglomerate holds stakes in major public companies such as Apple, Coca-Cola, and American Express, while also owning private businesses like BNSF Railway, See’s Candies, and Geico. Abel will be expected to manage over $900 billion in assets, maintain Berkshire’s legendary capital discipline, and preserve shareholder trust in a post-Buffett world. One of the biggest tests will be how Abel handles Berkshire’s massive cash pile and whether he can find new investment opportunities at a time when valuations are stretched and market competition is intense.
What Makes Him Different from Buffett
While Abel and Buffett share core philosophies—such as long-term investing, avoiding unnecessary debt, and maintaining high ethical standards—there are differences. Abel comes from an operating background rather than an investing one. He is more hands-on with businesses and often dives deeper into operational efficiencies than Buffett typically would. His approach is likely to be more focused on improving subsidiary performance rather than seeking out blockbuster investments. This shift could shape Berkshire’s evolution in subtle but meaningful ways over the next decade.
What Investors Should Watch
As Abel prepares to lead, investors should pay attention to a few critical areas: capital allocation strategy, handling of Berkshire’s $150+ billion in cash, approach to M&A, treatment of subsidiaries, and communication with shareholders. While Buffett’s annual letters and public interviews have set a gold standard for transparency, Abel will have to find his own voice without losing investor confidence. His first shareholder meetings and major decisions will be closely scrutinized—not because investors doubt his competence, but because the legacy he inherits is almost unmatched in the history of modern capitalism.
Conclusion
Greg Abel may not be a household name, but within financial and business circles, he is recognized as one of the most capable and disciplined executives of this generation. His journey from a Canadian accountant to the incoming CEO of Berkshire Hathaway is a testament to Buffett’s long-term grooming strategy and faith in internal talent. As Berkshire’s next chapter begins, investors, analysts, and business leaders around the world will be watching closely—not just to see how Abel leads, but how he preserves and adapts the values of one of history’s greatest companies for a new era.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice or an endorsement of any individual or company. All information is based on publicly available sources believed to be reliable at the time of writing. Readers should conduct their own research and consult with professional advisors before making any investment or strategic decisions.
