Greg Abel named CEO of Berkshire following Buffett's retirement announcement

Berkshire Hathaway's board has named Greg Abel as president and chief executive of the conglomerate, shortly after outgoing CEO and famed investor Warren Buffett announced his intention to retire at the end of the year.

Abel, who is currently vice-chair, will start in his new role next year. Buffett will stay on as chairman after the transition, the company said Monday.

"I think the time has arrived where Greg should become the chief executive of the company at year end," Buffett, 94, said at Berkshire's annual meeting in Omaha, Neb., on Saturday.

Buffett's decision to step down caps a remarkable 60-year run where he transformed Berkshire from a failing textile company into an enormous conglomerate with businesses across the U.S. economy.

The company, which owns railroads, insurance companies and an ice-cream maker, has been planning for decades for the eventuality when Buffett, who has run the company since 1965, is no longer there.

Still, the timing of his announcement came as a surprise, as "the Oracle of Omaha" hadn't signalled a clear intention on when to step aside.

He said Abel hadn't been aware of his plans prior to the announcement. Buffett also said he had "zero" intention of selling any of his Berkshire stock.

Berkshire shareholders said it remains unclear how the company's 189 operating businesses, $264 billion US of stocks and $348 billion US of cash will fare after the man so intertwined with it leaves the stage.

Buffett's exit from the company "will probably impact investors' view of Berkshire more than it will actual operations," Shields said.

Berkshire Hathaway shares fell 2.8 per cent before the bell on Monday.