Warren Buffett, the 94-year-old "Oracle of Omaha," announced he will step down as CEO of Berkshire Hathaway by the end of the year, recommending Vice Chairman Greg Abel as his successor.

"The time has arrived where Greg should become the chief executive officer of the company at year-end," Buffett said during Berkshire's 60th annual shareholder meeting in Omaha. 

Read next: Trump's tariffs are a big mistake: Warren Buffet

The announcement took even the board by surprise, with Buffett noting only two directors, his children, were informed beforehand. A formal board meeting is scheduled for Sunday.

Abel, 62, currently oversees Berkshire's non-insurance operations and had previously been identified as the heir apparent. Buffett said he would remain involved and had "no intention — zero — in selling one share of Berkshire Hathaway," which he plans to gradually give away.

'Absolutely monumental'

Shareholders erupted in applause after the statement. "This is absolutely monumental," said Christopher Rossbach, chief investment officer at J Stern & Co.

Buffett's exit, with a net worth of $168 billion, comes as Berkshire's Class A shares hit a record $809,808.50, marking a 20% rise this year. 

The announcement follows the 2023 death of longtime partner Charlie Munger and marks the end of an era for the conglomerate Buffett led since 1965.

"That's the news hook for the day," Buffett said, closing the meeting.