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Los Angeles Times
08-05-2025
- Business
- Los Angeles Times
Warren Buffett's successor got his start selling clean energy. Now he defends coal
Warren Buffett has invested tens of billions of dollars in fossil fuels, propping up some of the nation's dirtiest coal plants as well as major oil and gas suppliers even as the climate crisis threatens human civilization. But when Buffett announced last weekend that he plans to retire later this year, he recommended that Berkshire Hathaway's board name a new chief executive with a long, little-known history in renewable power. Greg Abel, who leads Berkshire's energy division, joined the staff of California Energy Co., or CalEnergy, in 1992. The firm primarily owned geothermal power plants that produced 24/7, pollution-free electricity by drilling into pockets of underground heat — which are plentiful in California. Most of CalEnergy's facilities sold electricity to Southern California Edison and were located at the Salton Sea or the China Lake Naval Air Weapons Station. Abel scaled the ranks, from controller to chief accounting officer to president. In 1999, CalEnergy acquired Iowa utility company MidAmerican for $4 billion. Soon after, Berkshire led a group of investors in a $9-billion purchase of MidAmerican, bringing Buffett into the energy business — and Abel into the legendary investor's orbit. A quarter-century later, Berkshire still owns the Salton Sea geothermal fleet. But Abel has embraced oil and gas. And like his mentor, he sees a long, profitable future for coal. At Berkshire Hathaway's annual meeting in Buffett's hometown of Omaha on Saturday, a 17-year-old high school student asked Abel about a Reuters investigation showing that Berkshire's coal plants emit more nitrogen oxide pollution than those of any other major U.S. company. Nitrogen oxides are poisonous gases that help form lung-damaging soot particles, which can travel hundreds of miles. Coal plants are also the dirtiest fossil fuel in terms of planet-warming carbon dioxide emissions. What could Abel say, the student asked, to young people forced to live with the consequences of climate change? Abel focused his answer on MidAmerican's Iowa operations, explaining how the utility decided in the early 2000s to meet the state's energy needs by building a coal plant, a gas plant and what was then the nation's largest wind farm. He said the mix of resources was based on discussions with the governor and was 'consistent with what the state wanted' — a reality that has also applied in other states where Berkshire owns utilities, he suggested. 'One, we absolutely have to meet the requirements and the law that's laid out federally. But most importantly, we had to recognize we implement public policy across these states,' Abel said. Rose Monahan, an Oakland-based staff attorney at the Sierra Club, described that answer as infuriating. 'Berkshire has teams of aggressive lobbyists and lawyers who fight against any regulation on the state and federal levels that would incentivize transitions to clean energy,' she said. Indeed, Berkshire spent more than $65 million lobbying the federal government over the last decade, according to data compiled by a nonprofit research group. The company regularly urges federal agencies to adopt weaker air pollution regulations and has sued federal and state officials over environmental rules. Buffett's successor is 'speaking to the public as if their hands are tied,' Monahan said. Abel made other excuses for the company's climate-wrecking ways. He noted, for instance, that Berkshire has invested $16 billion in renewable energy in Iowa, while closing five coal units in the state (with five units still operating). He suggested coal is needed to keep the lights on 24/7. 'We still need those five coal units to keep the system stable,' he said. California's experience tells a different story. The Golden State gets less than 2% of its power from coal — a number that will drop nearly to zero this summer, when the city of Los Angeles shuts down its Intermountain coal plant in Utah. And although California dealt with brief rolling blackouts during an August 2020 heat wave, the power grid has been remarkably stable the last few years, thanks in part to an influx of large-scale, lithium-ion batteries that store solar energy for after dark. California also relies on gas-fired power plants. But in the spring and summer, the state's utilities are increasingly keeping the lights on with 100% carbon-free electricity, mostly solar and wind — which are cheaper than coal. Despite those realities, one of Berkshire's utility companies, PacifiCorp, continues to operate six of the 30 or so coal plants still running in the Western U.S. Those plants serve customers of PacifiCorp subsidiaries Pacific Power and Rocky Mountain Power in parts of Northern California, Idaho, Oregon, Utah, Washington and Wyoming. Two years ago, the company forecast it would close its Utah coal plants, Hunter and Huntington, by 2032. Last year, it pushed out the closure estimates to 2036 and 2042. Then in a new power supply plan finalized in March — shortly after President Trump previewed an executive order to boost coal — it changed course again, dropping its plans to close either plant, so long as Trump manages to scrap a Biden-era rule to reduce carbon emissions. Another Biden-era rule would require Hunter and Huntington to add pollution-control devices that limit nitrogen oxide emissions — which, in addition to being terrible for human health, lead to hazy air and ruined views at Utah national parks including Zion and Canyonlands. Although the devices are common at many coal plants, PacifiCorp has asked the Trump administration not to require them, documents obtained by the Sierra Club show. 'They don't have a strategy for actually transitioning to a sustainable system,' the Sierra Club's Monahan said. A similar story is playing out in Wyoming, where PacifiCorp operates four coal plants. Projected retirement dates for those plants have been pushed from 2027 to indefinitely, from 2039 to indefinitely and from 2037 to 2042. PacifiCorp spokesperson David Eskelsen told me, essentially, not to take the retirement dates in any power supply plan too seriously. He said they're not a 'hard commitment,' and that expectations change regularly. Eskelsen pointed out that coal declined to 23% of PacifiCorp's electricity mix in 2024, from 43% in 2022. He noted that the company plans to add 4,359 megawatts of solar and wind farms by 2030, and twice that much by 2045 — although I wonder if, like the coal retirement dates, I shouldn't take those numbers too seriously. 'The company understands and supports prudent policies that address climate change,' he said in an email. I suspect Berkshire's definition of prudent differs from that of climate experts, who have determined humanity's best chance of avoiding frightening temperature increases — including far worse heat waves, droughts, wildfires and storms — involves the U.S. phasing out coal power by 2030 and reaching 100% clean electricity by 2035. As Abel takes the reins, he might also keep in mind that some of Buffett's fossil fuel investments have flopped. Clark Williams-Derry, an analyst at the Institute for Energy Economics and Financial Analysis, pointed to Buffett's massive bet on Occidental Petroleum — Berkshire is the oil and gas company's biggest shareholder — as an epic blunder. Berkshire has purchased billions of dollars of Occidental stock since 2019, but in a haphazard pattern — at first buying when prices were high, then selling when prices dropped, then buying as they rose again. 'It's the exact opposite of the typical Buffett play,' Williams-Derry said. Recently, Occidental stock is down again. Williams-Derry estimated Berkshire's total losses at $4.5 billion. Buffett's mistake, he believes, is common among investors: It's tempting to assume, in an energy-hungry world, that being able to produce lots of energy will lead to profits. But ever since the fracking boom, global oil and gas supplies have usually outpaced demand, causing low prices — and thus low profits. Fossil fuel suppliers typically perform well only briefly, during geopolitical crises that constrain supply, such as Russia's invasion of Ukraine. Overall, the fossil fuel industry has dramatically underperformed the stock market over the last decade. 'You can be a brilliant investor, and you can also make mistakes,' Williams-Derry said. It's been three decades since Abel got his start selling climate-friendly power in Southern California. Maybe after he takes over for the Oracle of Omaha, he'll draw on those experiences and make some wiser choices. A columnist can dream. On this week's podcast, I talk with my L.A. Times colleague Tony Briscoe. When he and a few other members of our climate desk realized that federal agencies wouldn't be testing properties burned in the Eaton and Palisades fires for toxic metals in the soil, they came up with an outside-the-box idea: They would do some testing themselves. Read their startling findings here. And listen to my conversation with Tony on Apple Podcasts, Spotify or YouTube. This is the latest edition of Boiling Point, a newsletter about climate change and the environment in the American West. Sign up here to get it in your inbox. And listen to our 'Boiling Point' podcast here. For more climate and environment news, follow @Sammy_Roth on X and @ on Bluesky.
Yahoo
06-05-2025
- Business
- Yahoo
Warren Buffett details timeline for Greg Abel's CEO transition: Trial Balance
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. The Trial Balance is weekly preview of stories, stats and events to help you prepare. Part 1 — Warren Buffett announces Greg Abel will be CEO by the end of 2025 Berkshire Hathaway's board voted to appoint Greg Abel as chief executive officer at the end of the year, following current CEO and Chairman Warren Buffett's announcement to step down as CEO at the company's largest-ever annual shareholder meeting on Saturday. Abel, who has been publicly named Buffett's successor since 2021, will take over as CEO, while Buffett, 94, will remain with the company as chairman of the board. Abel began his career in public accounting at PwC before joining CalEnergy in 1992 after working with the company as a client. When CalEnergy acquired MidAmerican Energy in 1999 and adopted its name, Abel was named president. That same year, Berkshire Hathaway acquired a controlling interest in MidAmerican. Abel became CEO in 2008, added the title of chairman in 2011, and the company was renamed Berkshire Hathaway Energy in 2014. Abel has served as vice chair of non-insurance operations at Berkshire Hathaway since 2018, overseeing a wide range of the conglomerate's businesses. Though he will become CEO, he will not succeed Buffett as board chair. That role has been reserved for Buffett's son, Howard Buffett, who will serve in a non-executive capacity. Buffett has led Berkshire Hathaway since 1965, transforming the struggling textile manufacturer into a diversified conglomerate and one of the world's most valuable companies. Often called the 'Oracle of Omaha,' Buffett's strategies are widely regarded as a benchmark in corporate capital allocation, long-term investing and leadership. During his tenure, Berkshire's market value grew from roughly $20 million to more than $800 billion, made several major acquisitions across industries and led the way in shareholder value, outperforming the S&P 500 for decades. Part 2 — This week Here's a list of important market events slated for the week ahead. Monday, May 5 ISM services, April Tuesday, May 6 Wednesday, May 7 Thursday, May 8 Friday, May 9 — None scheduled. Part 3 — Improving returns on investment capital The newest edition of the Metric of the Month column (5/7) with APQC CFO Perry Wiggins breaks down how finance chiefs can realize higher returns on invested capital. Beyond managing the metric 'thoughtfully and thoroughly,' Wiggins advises CFOs to focus on people, places, process and technology to drive improvement.
Yahoo
05-05-2025
- Business
- Yahoo
Who is Greg Abel, the Canadian tapped to succeed Warren Buffett as CEO of Berkshire Hathaway?
Canadian-born Greg Abel will be the next CEO of Berkshire Hathaway Inc., the multinational conglomerate that Warren Buffett built into a US$1.16 trillion investing juggernaut over more than 60 years at the helm. Buffett, 94, told the company's annual general meeting in Omaha, Neb., on Saturday that he planned to hand over the reins to Abel at year-end — a decision he reportedly discussed with only his two children, Howard and Susie — surprising both company shareholders and the heir apparent himself. The following day, the Berkshire board unanimously voted to make Abel president and chief executive on Jan. 1, 2026, and for Buffett to remain as chairman. Abel, 62, was previously revealed as Buffett's successor in 2021 after former Berkshire vice-chairman Charlie Munger let it slip at an annual meeting that Abel would 'keep the culture.' Who is Greg Abel, how did he rise through the ranks to be Buffett's choice and what challenges does he face as he puts his stamp on the sprawling business empire of the Oracle of Omaha? Born in Edmonton, Abel in his youth worked odd jobs such as delivering advertising flyers to homes and cleaning discarded bottles in return for cash. He also worked for a company filling fire extinguishers, through which he earned a small scholarship to the University of Alberta, according to the nonprofit Horatio Alger Association. Abel earned a bachelor's of commerce degree at the university before becoming an accountant. He worked at consulting firm PricewaterhouseCoopers in Edmonton, later moving to the company's San Francisco office. Abel's journey to Berkshire began in 1992, when he joined utilities company CalEnergy. He became president of Iowa-based MidAmerican Energy Holdings in 1998 when CalEnergy acquired the group. In 2000, Buffett bought a controlling stake in MidAmerican Energy (the company was later renamed Berkshire Hathaway Energy in 2014) and Abel stepped up as MidAmerican's chief executive. In 2018, Abel became part of Berkshire's board of directors. He currently serves as the chairman and chief executive of Berkshire Hathaway Energy and vice-chairman of non-insurance operations. An avid hockey player in his youth, Abel is also a volunteer coach for his son's team in Des Moines, his adopted hometown where Berkshire Hathaway Energy is based. Abel and Ajit Jain, 73, vice-chairman of insurance operations at Berkshire, were both considered top contenders for the chief executive role at Berkshire in 2018, when they were promoted to the board of directors. However, analysts at the time said Abel had the advantage of being younger than Jain and had more of a profile with investors, analysts and the press. For the past seven years, Abel had oversight of Berkshire companies such as Fruit of the Loom Inc., See's Candy Shops Inc., aerospace group Precision Castparts Corp. and Clayton Homes Inc., America's biggest builder of modular housing. In 2024, he oversaw a legal dispute over Berkshire's US$11 billion acquisition of truck stop operator Pilot Travel Centers LLC, according to people familiar with the matter. Ron Olson, Berkshire board director and one of the group's main lawyers from Los Angeles-based firm Munger Tolles & Olson LLP, said Abel's involvement gave him confidence that he was the right person to one day lead Berkshire, reported the Financial Times. There's no question Abel has a rather gargantuan pair of shoes to fill next year as head of a company that has generated returns of approximately 5.5 million per cent since 1964. 'Warren talks about curiosity being important as you go through things,' Abel said, according to CNN. 'That would be my style, to have questions and comments around their business, their frameworks.' Buffett, who is Berkshire's largest shareholder with a US$160 billion stake, said he wouldn't sell a single share of the stock after the transition, affirming his confidence in Abel. 'I would add this, the decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg's management than mine,' Buffett said on Saturday. 'You really need someone that behaves well on top and is not playing games for their own benefit.' Still, Berkshire's large size means it has become more difficult for other potential investments to effectively 'move the needle,' as Buffett himself once said. Abel's priority as the conglomerate's next chief executive will likely involve extracting better returns from Berkshire's existing pool of businesses, as opposed to the extensive deal-making that Buffett has been known for over the past decades, observers have said. In his 2006 annual letter to shareholders, Buffett wrote about the desired qualities for his eventual successor at Berkshire. 'Over time, markets will do extraordinary, even bizarre, things. A single, big mistake could wipe out a long string of successes,' he said. 'We therefore need someone genetically programmed to recognize and avoid serious risks, including those never before encountered.' Abel will be taking the reins at Berkshire at a time fraught with uncertainty, including the current U.S. trade war, with Buffett himself warning the shareholder meeting that 'trade should not be used as a weapon.' Berkshire's shares slid six per cent during early trading Monday following Buffett's succession announcement and Berkshire's first-quarter results, which showed a 14 per cent drop in operating earnings. Berkshire said in the earnings report that its operating results could be affected in future periods due to 'ongoing macroeconomic and geopolitical events, as well as changes in industry or company-specific factors or events. 'The pace of changes in these events, including international trade policies and tariffs, has accelerated in 2025,' the report said. 'Considerable uncertainty remains as to the ultimate outcome of these events.' The new CEO will be faced with several difficult questions, such as what to do with Berkshire's almost US$350 billion cash pile after Buffett struggled to find companies to invest in that could outperform the sky-high valuations of U.S. stocks. Shareholders will also be waiting to see whether Abel can command the same confidence among investors as his predecessor — the so-called 'Buffett premium.' And some wonder whether Abel will be faced with the potential pressure for Berkshire's sprawling businesses to be broken up. CEOs celebrate Buffett as he closes on a 5,500,000% run Warren Buffett's favorite valuation indicator flashes a buy signal Finally, investors will be wondering whether Abel has Buffett's magic touch as a capital allocator, identifying investment targets and matching Buffett's returns. 'He would make a huge mistake trying to be Warren Buffett, and he knows that,' Will Danoff, a Fidelity Investments money manager who counts Berkshire as a top holding, told the Wall Street Journal. 'Shareholders want Greg to be the best Greg Abel he can be.' • Email: slouis@ Sign in to access your portfolio
Business Insider
05-05-2025
- Business
- Business Insider
What to know about Greg Abel, the CEO Berkshire Hathaway's board voted unanimously to replace Warren Buffett
Buffett — who is 94 and has been the CEO of Berkshire Hathaway for 55 years — will remain as chairman of the board of directors, according to a press release. Greg Abel will become the new CEO and president as of January 1, 2026. "I think the time has arrived where Greg should become the chief executive of the company at year end," Buffett told the audience on Saturday, referring to Abel, one of his top hands. Abel, 62, has been Berkshire Hathaway's vice chair of non-insurance operations since 2018. He's also chair of Berkshire Hathaway Energy, which Buffett hailed as one of the conglomerate's four "jewels" in his annual shareholder letter in 2021, the same year Buffett first tapped Abel as his successor. While Buffett's approval was a major plus, the company's board of directors was tasked with confirming his successor, and did so on Sunday. Investors and shareholders expect that Abel will maintain Berkshire Hathaway's investment philosophy. He told shareholders at this weekend's meeting that he would start by maintaining the company's "fortress of a balance sheet," which allows it to make large investments without relying on banks, Barron's reported. Abel is known, however, for having a more hands-on management style than Buffett. He was estimated by Forbes to be worth $484 million in 2021. In 2022, he sold his 1% stake in the company's Berkshire Hathaway Energy unit for $870 million. Abel has risen through the ranks with a persistent focus on energy. The Canadian native played hockey in his early years and attended the University of Alberta. He graduated in 1984 with a degree in commerce. He joined PwC after graduation and quickly moved on to a small company called CalEnergy. In 1999, CalEnergy acquired MidAmerican Energy and adopted its name. That same year, Berkshire Hathaway bought a controlling interest in MidAmerican Energy. Abel took over the reins of MidAmerican in 2008 — renamed Berkshire Hathaway Energy in 2014 — and helmed it until 2018. He's also served on the board of several major companies, including Kraft Heinz, and has been affiliated with organizations and institutions like the Mid-Iowa Council Boy Scouts of America, Drake University, American Football Coaches Foundation, and the Horatio Alger Association. He lives in Des Moines, Iowa. Those who've spotted him at a hockey rink in town, watching his son practice, say he comes across as a "regular guy," the Des Moines Register reported. Buffett also has a reputation as a folksy and down-to-earth person, living in Omaha, Nebraska. At Berkshire Hathaway, succession doesn't seem to be just about handing over a job. With the title, Buffett said he's passing down traditions — like writing letters — and a mindset, too. In Berkshire Hathaway's 2024 annual report, Buffett wrote, "At 94, it won't be long before Greg Abel replaces me as CEO and will be writing the annual letters. Greg shares the Berkshire creed that a 'report' is what a Berkshire CEO annually owes to owners. And he also understands that if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well."
Yahoo
04-05-2025
- Business
- Yahoo
Who is Greg Abel, the heir apparent to Warren Buffett at Berkshire Hathaway?
Warren Buffett said he will step down as CEO of Berkshire Hathaway by year's end. Buffett said he hopes Greg Abel, now a vice chair at the company, will take over. Abel is expected to maintain Buffett's existing investment approach. In between talk of trade wars and tariffs at Berkshire Hathaway's annual shareholder meeting this weekend stood a more generational question — one about what, and who, comes next for the Omaha-based conglomerate. That question became more urgent after Warren Buffett, the CEO of Berkshire Hathaway for 55 years — and now 94 years old — told a stunned crowd that he'd step down at the end of the year. "I think the time has arrived where Greg should become the chief executive of the company at year end," he said. Buffett was referring to one of his top hands, Greg Abel. Abel, 62, has been Berkshire Hathaway's vice chair of non-insurance operations since 2018. He's also chair of Berkshire Hathaway Energy, which Buffett hailed as one of the conglomerate's four "jewels" in his annual shareholder letter in 2021, the same year Buffett first tapped Abel as his successor. While Buffett's approval is a major plus, the company's board of directors will ultimately decide on his successor. Investors and shareholders expect that if Abel does assume the role, he will maintain Berkshire Hathaway's investment philosophy. He told shareholders at this weekend's meeting that he would start by maintaining the company's "fortress of a balance sheet," which allows it to make large investments without relying on banks, Barron's reported. Abel is known, however, for having a more hands-on management style than Buffett. He was estimated by Forbes to be worth $484 million in 2021. In 2022, he sold his 1% stake in the company's Berkshire Hathaway Energy unit for $870 million. Abel has risen through the ranks with a persistent focus on energy. The Canadian native played hockey in his early years and attended the University of Alberta. He graduated in 1984 with a degree in commerce. He joined PwC after graduation and quickly moved on to a small company called CalEnergy. In 1999, CalEnergy acquired MidAmerican Energy and adopted its name. That same year, Berkshire Hathaway bought a controlling interest in MidAmerican Energy. Abel took over the reins of MidAmerican in 2008 — renamed Berkshire Hathaway Energy in 2014 — and helmed it until 2018. He's also served on the board of several major companies, including Kraft Heinz, and has been affiliated with organizations and institutions like the Mid-Iowa Council Boy Scouts of America, Drake University, American Football Coaches Foundation, and the Horatio Alger Association. He lives in Des Moines, Iowa. Those who've spotted him at a hockey rink in town, watching his son practice, say he comes across as a "regular guy," the Des Moines Register reported. Buffett also has a reputation as a folksy and down-to-earth person, living in Omaha, Nebraska. At Berkshire Hathaway, succession doesn't seem to be just about handing over a job. With the title, Buffett said he's passing down traditions — like writing letters — and a mindset, too. In Berkshire Hathaway's 2024 annual report, Buffett wrote, "At 94, it won't be long before Greg Abel replaces me as CEO and will be writing the annual letters. Greg shares the Berkshire creed that a 'report' is what a Berkshire CEO annually owes to owners. And he also understands that if you start fooling your shareholders, you will soon believe your own baloney and be fooling yourself as well." Read the original article on Business Insider Sign in to access your portfolio
