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Hi! It's me again. I'm back after eight weeks away with the newest addition to my family. Thanks to Hallam Bullock for running things while I was gone. (Hopefully he didn't do too good a job that you're sad to see me back.)
Speaking of leadership changes, Warren Buffett is stepping down as CEO of Berkshire Hathaway. (How's that for a transition?) In today's big story, we're looking at why his successor could face an uphill battle taking over for someone who, according to one Buffett expert, is "literally not replaceable."
We're also growing our newsletter family! The great Alistair Barr is launching a new weekly newsletter for BI. Tech Memo will give you the scoop on what's happening inside the world's most powerful tech companies. Sign up here!
What's on deck
Markets: Wall Street forecasters are envisioning a recession this year. Here's how they think it'll play out.
Tech: Skype felt like magic for many millennials. Then came Zoom.
Business: American shoppers might have to say goodbye to their endless options.
But first, so long, farewell.If this was forwarded to you, sign up here.
The big story
Bye bye Buffett
A 94-year-old retiring shouldn't be surprising, but Warren Buffett isn't your typical 94-year-old.
Business Insider's Theron Mohamed, who was at Berkshire Hathaway's annual meeting in Omaha, said the crowd was stunned into silence when Buffett first shared the news.
They'd eventually rally to give him two standing ovations (something Buffett, never one to miss a joke, pointed out could be interpreted a couple of different ways).
It didn't end there, as praise poured in from business leaders like Tim Cook, Mark Cuban, and Jamie Dimon.
The adulation is well deserved. Berkshire's Class A stock has risen roughly 5,500,000% under Buffett from 1965 through 2024, compared to around a 39,000% increase for the S&P 500.
But the question remains: What's life without Warren going to be like?
Luckily for Berkshire backers, Buffett spent the past few years succession planning.
Greg Abel, the company's vice chair of non-insurance operations since 2018 and the chair of Berkshire Hathaway Energy, is Buffett's pick to fill his proverbial shoes.
The 62-year-old was first identified as Buffett's heir-apparent back in 2021. Abel even has a similar small-town vibe as Buffett. He lives in Des Moines, Iowa, and has previously been described as a "regular guy."
Still, Alice Schroeder, Buffett's friend and biographer, told BI's Katherine Tangalakis-Lippert the legendary investor is "literally not replaceable."
In Omaha, many of Buffett's shareholders told Theron they were sad but grateful, and some were worried about the future.
Succeeding a high-profile executive is no picnic. Some big-name CEOs have found themselves returning to the helm of their old company. Disney's Bob Iger and Starbucks' Howard Schultz are two recent examples.
Abel is also stepping into a unique role that has thrived on being somewhat hands-off. Despite having nearly 400,000 employees across the companies it owns, Berkshire has only a few dozen employees working at its corporate headquarters.
And while that might be viewed as a benefit for Abel, knowing when to step back can sometimes be just as hard as knowing when to step in.
There's also the added complication of Berkshire's sheer size. With a market cap north of $1 trillion, investing opportunities that move the needle for the massive conglomerate are becoming few and far between.
The value-focused investing that drove Berkshire to astronomical heights is also becoming harder to execute with valuations so high. It's why the company's cash pile, which currently stands at nearly $350 billion, continues to climb.
Still, Buffett seems confident in Abel's ability to take the torch, and if there's one thing investors have learned during his tenure: Don't bet against Buffett.
3 things in markets
1. How a recession could unfold. Some of Wall Street's top forecasters see a downturn materializing in 2025. Many believe tariffs could be the defining factor. Here's what economists from Moody's, JPMorgan, and Apollo think could happen.
2. The New York gold rush. Business has been booming lately for Isaac Kahan, owner of Bullion Trading LLC. With prices for the safe-haven asset soaring, BI visited the business to learn about recent trends.
3. All eyes on LA. The annual Milken conference at the Beverly Hilton in Los Angeles kicks off today, and BI's Bradley Saacks will be covering it all for us. Treasury Secretary Scott Bessent's chat with host Michael Milken opens the event and will set the tone for a conference that attracts the biggest names in the finance and business world.against Buffett.
3 things in tech
1. RIP Skype. After 22 years in operation, Skype will be laid to rest today, adding another tombstone to the graveyard of early-2000s tech services millennials loved and left behind. Here's a look at Skype's rise and decline amid a sea of video-calling competitors.
2. An AI fix for a tedious legal task. Due diligence — when attorneys comb through thousands of pages before a deal is finalized — is a necessary but lengthy process for M&A lawyers. Startup Marveri has secured $3.2 million to revolutionize it with AI.
3. ChatGPT is great, but don't overuse it. OpenAI recently scrapped an update that made its chatbot a bit too friendly. The mistake is a good reminder: We shouldn't rely on ChatGPT in vulnerable moments. That's what human connection is for, BI's Alistair Barr writes.
against Buffett.
3 things in business
1. Everyone is stuck in their jobs. Americans are grumpy because they can't change jobs, and now, Trump's tariffs could make the Big Stay even worse. Pent-up bitterness in the office isn't just bad for the employees who feel stuck — it's bringing morale down for everyone else.
2. No more endless choices? American shoppers love having lots of options, but Trump's tariffs could soon change that. Whenever you're looking for a new pair of jeans in the near future, it's likely you'll have far less options to choose from.
3. Starbucks wants to bring "aperitivo" to the US. CEO Brian Niccol said he's looking to bring late afternoon bites, similar to its European menus, to US locations. BI's Katie Notopoulos checked out what the chain currently offers — and what could be worth bringing from Europe.
In other news
- Warren Buffett says cutting the US deficit is a difficult job — but it 'should be done.'
- The FTC says the company that pitched financial freedom scammed people out of $1 billion.
- Met Gala tickets, which are invite-only, cost $75,000. Here's what that gets attendees.
- Amazon-backed creator startup Spotter lays off staffers. Read the memo from its CEO.
- Here's what happens if you don't have a Real ID after May 7.
- Trump is waging war on America's knowledge workers.
- Employers are tapping this group of 'highly skilled' but underemployed people.
- Americans love Social Security. Its overworked staff feels like 'the enemy.'
- Nearly two-thirds of Americans fear going broke more than death. Here's how to avoid three retirement-saving mistakes.
- For Gen Zers working in clean energy, DOGE's cuts are a double whammy.
- Trump's tariffs are fueling a rise in weird new gadgets.
- Five years of student-debt relief is suddenly over.
What's happening today
- Sean 'Diddy' Combs is on trial on charges of racketeering and sex trafficking.
- Ford Motors reports earnings.
- The Met Gala is tonight.
The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
