Warren Buffett steps down as Berkshire Hathaway chairman

Warren Buffett is stepping down as chairman of Berkshire Hathaway in the next step of the transition at the top of the $1 trillion conglomerate he led for more than six decades.

Buffett, 96, will become chairman emeritus and will take on his new role immediately, nine months after handing the CEO reins to longtime lieutenant Greg Abel, the company said Friday.

His son, Howard, will become Berkshire Hathaway’s new chairman, part of a long-planned succession. Howard Buffett has been on the Berkshire Hathaway board since 1993.

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 the modern corporate United States.

Berkshire’s Class B shares were last down 0.3 percent 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.

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, often known as the Oracle of Omaha in a nod to the city he lives in, as a sounding board on everything from acquisitions and succession to navigating periods of market turmoil. 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.

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 the US corporate world.

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 percent to $12.98bn, topping analyst forecasts. Net income more than doubled to $25.67bn, including unrealised 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 eager than Warren Buffett to address performance shortfalls.

“Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet,” Buffett said. “Think of Howard as a policy the shareholders own and hope never to claim against.”

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.”