Warren Buffett first shared that Greg Abel would take over as CEO in 2021, but no one was quite prepared to hear him officially pass the baton last weekend at the Berkshire Hathaway ( BRK.A 0.29%) ( BRK.B 0.61%) annual meeting.

Warren Buffett shocked an arena full of his shareholders when he announced his intention Saturday to step down as the CEO of Berkshire Hathaway at the end of the year. The 94-year-old legendary investor also said he will recommend to his board that Greg Abel should become CEO.

Berkshire Hathaway's board said Monday it approved Warren Buffett's successor Greg Abel to take over as CEO at the end of the year, while Buffett remains chair of the board.