Warren Buffett, the prominent investor and CEO of Berkshire Hathaway, announced on Saturday that he would be retiring by the end of the year after a distinguished career spanning 60 years.

Buffett, who is 94 years old, indicated that he would recommend Greg Abel, the current vice chairman, to take over the CEO position at the upcoming board meeting.

In his statement, Buffett expressed confidence in Abel's capabilities, stating, "I believe it is time for Greg to be the CEO of the company by the end of the year." Abel has long been considered Buffett's successor and is currently overseeing all non-insurance operations of Berkshire.

Previously, Buffett had suggested that he did not plan to retire, which led to speculation that the vice chairman would only ascend to the role of CEO following Buffett's passing.

However, the announcement marks a significant shift in the leadership of the multibillion-dollar conglomerate.

Buffett made the retirement announcement during a five-hour question-and-answer session, during which he did not take queries related to his retirement.

He disclosed that only two members of the board, who are also his children, were aware of his decision prior to the public announcement.

Abel, who sat alongside Buffett during the session, was also not informed in advance of the announcement.

An hour after the announcement, Abel returned to lead the company’s official business meeting, acknowledging the news with humility and gratitude.

"I just want to say that I couldn’t be more humbled and honored to be a part of Berkshire as we move forward," Abel remarked.

Investor sentiment regarding Greg Abel's ascendance to CEO appears positive, although uncertainties remain about his ability to manage Berkshire's substantial investment strategies, particularly concerning its cash reserves.

Buffett reiterated his support for Abel, promising to continue investing his wealth into the company as he transitions out of the role.