Greg Abel, 62, is going to be the next CEO of Berkshire Hathaway. Buffett said he would step down at the end of the year.

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.

When Greg Abel becomes Berkshire Hathaway's new CEO next year he will of course take on additional responsibilities, but with Warren Buffett remaining as chairman, the surprise change announced at the annual meeting over the weekend is in some ways just another milestone in the company's succession plans.