Greg Abel
CEO of Berkshire Hathaway Energy and designated successor to Warren Buffett as Vice Chairman of Berkshire Hathaway, known for his operational expertise and renewable energy leadership.
Greg Abel
Gregory Abel is the CEO of Berkshire Hathaway Energy and Berkshire Hathaway's designated successor to Warren Buffett as Vice Chairman. He has been instrumental in building MidAmerican Energy Holdings (now Berkshire Hathaway Energy) into one of America's largest utility companies, with expertise in regulated utilities, pipelines, and renewable energy.
Overview
| Metric | Value |
|---|---|
| Born | June 1961 |
| Current Role | CEO, Berkshire Hathaway Energy |
| Berkshire Title | Vice Chairman (successor-designate) |
| Education | University of Washington |
| Predecessor | Dave Sokol |
Career
Early Career
Greg Abel worked in the accounting and energy industries before joining MidAmerican:
- Built expertise in regulated utilities
- Demonstrated capital allocation skills
- Developed strong relationships with regulators
Rise at MidAmerican
Abel worked alongside Dave Sokol to build MidAmerican:
- Focused on operational excellence
- Maintained conservative financial practices
- Expanded renewable energy investments
CEO of MidAmerican/Berkshire Hathaway Energy
When Dave Sokol departed in 2011, Abel took the helm:
- Continued the company's growth trajectory
- Expanded wind power investments significantly
- Maintained relationships with regulators
Leadership at Berkshire Hathaway Energy
Berkshire Hathaway Energy Portfolio
Under Abel's leadership, BHE has grown to include:
| Business | Description |
|---|---|
| MidAmerican Energy | Iowa utility, 723,000 customers |
| PacifiCorp | 6 western states, 1.7M customers |
| NV Energy | Nevada utility |
| Kern River | Major natural gas pipeline |
| Northern Natural | Major natural gas pipeline |
| HomeServices | 2nd largest real estate brokerage |
Renewable Energy Leadership
Abel has made BHE the largest owner of wind power among regulated utilities:
- Iowa: ~20% of generation from wind
- PacifiCorp: Expanded wind from 33 MW to 794+ MW
- 2008 alone: $1.8 billion invested in wind
Buffett's Endorsement
Succession Plan
In 2008, Buffett made clear that Abel was his succession choice:
"Dave Sokol and Greg Abel operate their businesses in a first-class manner. They don't know of any other way to operate."
The Succession Announcement
In 2021, Berkshire's board named Abel as the next Vice Chairman:
- Ajit Jain handles all insurance operations
- Greg Abel handles all non-insurance operations
- Both report directly to Buffett (then the board)
Management Philosophy
Operating Principles
Abel applies Berkshire principles:
- Decentralized management
- Focus on long-term value
- Conservative balance sheet
- Employee autonomy
Capital Allocation
Abel has demonstrated excellent capital allocation:
- Reinvesting earnings in regulated utilities
- Making bolt-on acquisitions
- Maintaining debt discipline
Key Stats
| Metric | Value |
|---|---|
| BHE Pre-Tax Earnings (2018) | ~$5 billion |
| BHE Float (approximate) | Part of Berkshire's $122B+ |
| Wind Capacity Added | Billions invested since 2000 |
Famous Buffett Quotes
"Greg Abel has earned every dollar he's been paid. He doesn't need me to tell him what to do."
"Dave Sokol and Greg Abel are going to run any businesses with which they are associated in a first-class manner."
Related
- warren-buffett — The boss and mentor
- berkshire-hathaway — The company he leads
- berkshire-hathaway-energy — His operating company
- moat — How regulated utilities build moats