Business
Warren Buffett Plans to Step Down as Berkshire Hathaway CEO by End of 2025
Warren E. Buffett has been at the forefront of American capitalism for decades as the chief executive of Berkshire Hathaway, the conglomerate he built into a $1.1 trillion colossus.
By the end of the year, he is preparing to give up that role.
Mr. Buffett said at Berkshire’s annual shareholder meeting on Saturday that he plans to ask the company’s board to approve making Gregory Abel, his heir apparent, the chief executive by the end of the year.
Mr. Abel would have “the final word” when it comes to the company’s operations, how it invests and more, Mr. Buffett, 94, told the tens of thousands of Berkshire shareholders at the meeting in Omaha.
But Mr. Buffett added that he “would still hang around and conceivably be useful in a few cases.” He will remain chairman of Berkshire — turning that role over to his son Howard Buffett upon his death — and remains the company’s single biggest shareholder, with a roughly 14 percent stake that is worth about $164 billion.
Mr. Buffett’s plan, which he said had been known only to two of his children who sit on the company’s board, Howard and Susan Buffett, was greeted by a minute-long standing ovation by Berkshire shareholders. Mr. Abel, 62, appeared surprised by his boss’s announcement. After the announcement, several board members attending Berkshire’s meeting hugged each other.
Though Mr. Buffett looked in good health, having led several hours of questions from investors on Saturday, changes to this year’s annual meeting — his 60th at Berkshire — reflected his advancing age. He used a cane, which he first mentioned in the company’s annual letter in February, and shortened the shareholder question session by several hours.
If the board approves the plan, it would signify the end of an era for one of the most successful companies in modern capitalist history, and one of its most famous investors. Mr. Buffett has amassed a Midas-like fortune by being a savvy stock picker, buying up companies and holding them for the long term.
Through that investing philosophy, he assembled a conglomerate that runs a huge insurance operation, a major railroad, dozens of consumer companies and oversees a vast stock portfolio.
Among Berkshire’s most notable holdings are names that many consumers recognize: the auto insurer Geico, the BNSF railroad, the power utility Berkshire Hathaway Energy, Dairy Queen, See’s Candies, Fruit of the Loom, the paint company Benjamin Moore and the private jet company NetJets. Together, those businesses helped Berkshire grow a cash hoard that now sits at nearly $348 billion, more than the stock market valuation of McDonald’s.
Berkshire’s financial firepower has made Mr. Buffett one of the most influential businessmen in the world, giving his pronouncements on many topics, including politics, great weight. That included his criticism of President Trump’s trade policies, which Mr. Buffett took aim at on Saturday.
“Trade should not be a weapon,” Mr. Buffett said at the annual meeting. “I don’t think it’s right and I don’t think it’s wise.”
Mr. Buffett’s comments on tariffs were far from his first foray into politics. A Democratic supporter, his name was attached to a proposal years ago by former President Barack Obama that would have raised taxes on millionaires. But Mr. Buffett has kept a low profile for months, and even on Saturday he did not mention Mr. Trump by name.
Mr. Buffett’s plan to step down would complete one of the most-watched leadership transitions in corporate America. For years, he faced questions about who could take over Berkshire, a uniquely complicated business, and a number of executives had been floated as his successor.
But in 2021, Mr. Buffett finally confirmed that it would be Mr. Abel who joined the Berkshire fold when the company bought his energy business in 2000. Since then, the Canadian executive has risen through the ranks, turning what is now called Berkshire Hathaway Energy into one of America’s biggest power producers.
Mr. Abel is currently the vice chairman of Berkshire’s businesses other than insurance. Oversight of the conglomerate’s behemoth insurance operations has remained with Ajit Jain, a longtime Buffett lieutenant. Mr. Buffett and other executives have professed their belief that Mr. Abel could maintain Berkshire’s culture.
“Greg is ready,” Ronald L. Olson, a longtime Berkshire director who is also stepping down, told CNBC after Mr. Buffett’s announcement on Saturday.
Mr. Olson added that he hoped Mr. Buffett could serve as a valuable sounding board for Mr. Abel, much as Charles T. Munger, Mr. Buffett’s longtime business partner who died in 2023, did.
Together, Mr. Buffett and Mr. Munger entertained investors and more — notably at the Berkshire annual meetings, now in their 60th year — with a sort of vaudeville act, Mr. Buffett as the wry optimist and Mr. Munger as the sharp-tongued pessimist.
Berkshire’s latest financial report card underscored the complications that Mr. Abel will confront as chief executive.
The company reported a sharp drop in first-quarter earnings, with operating income — Mr. Buffett’s preferred measure — down 14 percent from the same time a year ago to $9.6 billion. Using generally accepted accounting principles, Berkshire reported a nearly 64 percent drop in net income, largely because of paper investment losses.
But while markets have grown more volatile in response to Mr. Trump’s whipsawing approach to trade, Mr. Buffett professed little worry about the effects of that volatility on Berkshire.
“It’s really nothing,” he told shareholders, suggesting that riding out market vicissitudes was part of stock investing.
The company reported that a “majority” of its businesses had lower sales and earnings in the first three months of the year, particularly in insurance underwriting income, which was hit by losses tied to the California wildfires.
In a regulatory filing on Saturday, Berkshire warned that Mr. Trump’s trade policies were generating “considerable uncertainty,” which could affect the company’s operating results. “We are currently unable to reliably predict the potential impact on our businesses, whether through changes in product costs, supply chain costs and efficiency, and customer demand for our products and services.”
Berkshire’s cash pile grew to $347.7 billion, a record, reflecting that Mr. Buffett has not found the kind of blockbuster investment opportunities that helped put the company on the map. In the past, he has acknowledged that given Berkshire’s size, it is nearly impossible now for Berkshire to find deals that could meaningfully augment its earnings.
During his question-and-answer session with shareholders at the annual meeting on Saturday, Mr. Buffett acknowledged stocking up on cash to prepare for any potential buying opportunity. He revealed that he had weighed a potential $10 billion investment, but later refused to elaborate.
Berkshire continued to be a net seller of stocks, selling $4.68 billion worth of equity in the quarter, compared with $3.18 billion in purchases.
One matter that Mr. Buffett did not directly address on Saturday is what would happen to Todd Combs and Ted Weschler, whom he hired more than a decade ago to help pick stocks for Berkshire. The two have been widely expected to become Berkshire’s stock pickers after Mr. Buffett steps away, though Mr. Combs has also become the chief executive of Geico.
A number of prominent corporate and business leaders were on hand on Saturday, including the Microsoft co-founder Bill Gates, Tim Cook of Apple (which is one of Berkshire’s biggest stock holdings) and the billionaire financier William A. Ackman. Two first timers, Hillary Rodham Clinton and Priscilla Chan, the wife of Meta’s chief executive Mark Zuckerberg, were also present.
Andrew Ross Sorkin contributed reporting.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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