Warren Buffett has announced that Greg Abel, currently Vice Chairman overseeing Berkshire Hathaway's non-insurance operations, will assume the role of CEO while Buffett transitions to an advisory Chairman position. The announcement provides clarity on succession that investors have long sought.

Buffett, who turns 96 this year, emphasized that the transition will be gradual and that he intends to remain actively involved in major capital allocation decisions. Abel has been with Berkshire since 1992 and has overseen the company's vast portfolio of operating businesses.

"Greg knows Berkshire inside and out, and he shares our culture and values," Buffett wrote in his annual letter to shareholders.