Warren Buffett steps down as Berkshire chairman, son Howard succeeds

Berkshire Hathaway said on Friday that Warren Buffett will step down as chairman and ‌become chairman emeritus, effective immediately, nine months after handing the CEO reins to longtime lieutenant Greg Abel. The company named his son, Howard Buffett, a ​director since 1993, as chairman.

Warren ⁠Buffett is credited with transforming Berkshire from a failing textile company into a $1.1 trillion conglomerate while building an investment ‌philosophy that influenced generations of investors and executives, ‌making him one of the most consequential figures in modern corporate America.

Berkshire's Class B shares were last down 0.3% in premarket trading. Buffett's reputation has also been reflected in the company's valuation, with investors for years ascribing a "Buffett premium" to its shares.

The conglomerate's price-to-book value has fallen since Buffett announced he would step down ‌as CEO, slipping from around 1.62 to 1.53, according to data compiled by LSEG.

Berkshire remains the only financial firm in the trillion-dollar market-value club dominated by ⁠technology giants.

"It was always a matter of when, not if. Buffett has made a graceful exit," said Brian Jacobsen, chief economic strategist at Annex Wealth Management.

"Berkshire has had years to prepare for this transition, so this feels more like the completion of a carefully planned succession than a sudden changing of the guard."

A SIX-DECADE LEGACY

"Father Time always wins. He has, however, been generous with me," Buffett, 96, who has been with Berkshire since 1965, wrote in a letter to shareholders on Friday.

Buffett's influence has extended far beyond Berkshire, shaping generations of corporate leaders and investors with his emphasis on long-term thinking, disciplined capital allocation and ​straightforward management.

"The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian," ‌Abel said in a statement on Friday.

CEOs have looked to Buffett as a sounding board on everything from acquisitions and succession to navigating periods of market turmoil, while his annual shareholder meetings became a gathering point for investors.

"As Chairman Emeritus, Mr. Buffett will remain a member of the Board of Directors and will ⁠continue to offer his valued judgment and perspective," Berkshire said in a statement.

A chairman emeritus is typically an honorary title given to a retired board leader or company founder to recognize their past service and lasting impact.

Buffett first announced plans to step away from the conglomerate in May 2025, surprising shareholders and analysts despite his age. After ​decades at the ‌helm, he had become synonymous with the company, making his succession one of the most closely watched in corporate America.

Berkshire's businesses include Geico car ‌insurance, the BNSF railroad, many energy and industrial companies, Dairy Queen ice cream, and grizzled brands such as the World Book Encyclopedia. It also owns hundreds of billions of dollars of both stocks and US Treasuries.

In the second quarter, its operating profit rose 16% to $12.98 billion, topping analyst forecasts. Net income more than doubled to $25.67 billion, including unrealized ‌gains and losses on stocks ‌that Omaha, Nebraska-based Berkshire still owns.

'IT'S NOT ROCKET SCIENCE'

Unlike his father, Howard ⁠Buffett, known as Howie, would not have a management role as chairman, and his main responsibility would be to preserve Berkshire's ‌culture.

That culture includes letting Berkshire's operating businesses handle their day-to-day affairs without interference from upper management, though Abel is widely seen as more keen than Warren Buffett to address performance shortfalls.

Abel has direct oversight of several Berkshire business lines, while Vice Chairman Ajit ⁠Jain oversees insurance and newly installed President Adam Johnson oversees consumer, services and retail subsidiaries.

Howard Buffett had his own definition of Berkshire's culture. "It's not rocket ​science," he told the Wall Street Journal in January 2025. "The culture is to keep things simple, to do what you need to do but don't do a lot of things you don't need to do, treat people fairly, respect your managers, respect your shareholders. Tell them ⁠the bad news upfront, be honest."

Reuters