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Warren Buffett, one of the world’s richest people and most accomplished investors, said on Saturday that he wants to step down as Berkshire Hathaway’s chief executive at the end of the year.

The announcement after a five-hour question-and-answer period at the company’s shareholders’ meeting on Saturday came as a big surprise, especially because the 94-year-old had previously said he did not plan to retire.

Buffett said he will recommend to Berkshire Hathaway’s board on Sunday that Vice Chairman Greg Abel should replace him.

“I think the time has arrived where Greg should become the chief executive officer of the company at year’s end,” Buffett said.

Thousands of investors gathered at his annual meeting, in the Omaha arena, Nebraska, gave Buffett a prolonged standing ovation after the announcement.

The billionaire investor took control of Berkshire Hathaway in 1965 when it was a textiles manufacturer.

Over the past 60 years, Buffett turned the seemingly failed textile company into a conglomerate by finding other businesses and stocks to buy that were selling for less than they were worth.

His success made him a Wall Street icon and earned him the nickname “Oracle of Omaha,” a reference to the Nebraska city where the investor was born and has lived.

Who is Greg Abel?

Abel has been Buffett’s designated successor for years and already manages all of Berkshire’s noninsurance businesses. But it was always assumed that he would not take over until after Buffett’s death.

Buffett announced the news at the end without taking any questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett.

There was no warning for Abel, who was seated next to Buffett on stage. An hour later, he returned to respond to the news, this time without Buffett on stage.

“I just want to say I couldn’t be more humbled and honoured to be part of Berkshire as we go forward,” Abel said.

According to some analysts, several investors believe Abel will do a good job running Berkshire, but it remains to be seen how good he will be at investing Berkshire’s cash.

Cathy Seifert, a CFRA research analyst, said it had to be hard for Buffett to reach this decision to step down.

“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert said. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”

Buffett endorsed Greg on Saturday by pledging to keep his fortune invested in the company.

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said.

“The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”

Trade is not a weapon, Buffett warns

Meanwhile, Buffett has warned of dire global consequences from US President Donald Trump’s trade tariffs, saying, “Trade should not be a weapon.”

Buffett told Saturday’s gathering that Trump’s trade policies have raised the risk of global instability by angering the rest of the world.

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said.

According to the billionaire investor, “there’s no question that trade can be an act of war.”

And while he believes it was best for trade to be balanced between countries, Buffett said he doesn’t think President Trump was going about it the right way with his widespread tariffs.