Warren Buffett Cared So Much About Shareholders, He Told Them About His Retirement Plans Before Even Telling The Board Or Greg Abel, Says Monsoon Pabrai

Warren Buffett‘s retirement announcement at Berkshire Hathaway Inc. BRK BRK annual meeting demonstrates his extraordinary shareholder commitment, according to Monsoon Pabrai, daughter of noted value investor Mohnish Pabrai.

What Happened: Monsoon Pabrai stated that Buffett shared his retirement plans with 45,000 shareholders at the Omaha annual meeting before informing Berkshire’s board of his successor, Greg Abel, in an interview with CNN on Saturday. The announcement prompted a five-minute standing ovation from the attendees.

“In my career, I have never ever seen a CEO with this much care for his shareholders,” Pabrai said. “He announced his retirement plans with the shareholders before the board and even Greg Abel, who will take over him as CEO.”

Buffett, who turns 95 in August, stated at Saturday’s meeting: “I think the time has arrived where Greg should become the chief executive of the company at year end.” The announcement shocked most board members, with only Buffett’s children previously aware of his decision.

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Why It Matters: Buffett’s retirement marks the end of a 60-year tenure during which he transformed Berkshire from a struggling textile firm into a major conglomerate with a $1.16 trillion market capitalization.

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Despite stepping down, Buffett plans to retain his Berkshire stock, expressing confidence that “the prospects of Berkshire will be better under Greg’s management than mine.” He intends to provide guidance during the transition while ceding operational and capital allocation decisions to Abel.

Berkshire’s stock has climbed approximately 13.53% this year while the S&P 500 has fallen 3.72%, with the conglomerate now holding about $347 billion in cash, positioning it to capitalize on future investment opportunities.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.