The Berkshire Hathaway board of directors will keep Warren Buffett as its chairman and appointed Greg Abel as new company president and CEO to replace 94-year-old Buffett.

Although Abel's expected ascension had been known for four years, the announcement at Berkshire's annual meeting in Omaha, Nebraska, was a surprise.

Without question, Warren Buffett is the world's greatest living investor, maybe the best of all time. In his 60 years as chairman and CEO of Berkshire Hathaway (BRK-A) (BRK-B), he has generated cumulative returns of 5.5 million percent, a compounded annual growth rate of 20%, twice as much as the S&P 500.