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Warren Buffett Steps Down as Berkshire Hathaway Chairman
Confirmed
In Short: Warren Buffett, 96, is stepping down as chairman of Berkshire Hathaway, becoming chairman emeritus.
Warren Buffett announced Friday that he is stepping down as chairman of Berkshire Hathaway after 56 years, becoming chairman emeritus.
Buffett's son, Howard, will take over as chairman, a role he has been preparing for since joining the board in 1993.
In a letter to shareholders, Buffett said, 'I have served Berkshire since 1965, and I am confident with Greg Abel running the company and Howard guarding its culture and values.
Howard Buffett, 71, will serve as a guardian of the corporate culture his father spent more than 60 years building, while Greg Abel remains in charge of the company and its major decisions.
Buffett noted in his letter that Howard cares deeply about the company and has been a Berkshire director for 33 years.
Berkshire Hathaway's Class B shares were last down 0.3 percent in premarket trading.
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.
What this adds
Buffett's departure was long anticipated but still significant for the company and its shareholders.
The succession plan was detailed in Buffett's 2011 60 Minutes interview, where he expressed his desire for Howard to eventually become Berkshire's nonexecutive chairman.
Howard Buffett will not be running Berkshire's businesses but will focus on preserving the company's culture and values.
The timing of Buffett's step down could be influenced by various factors, including his outlook, Howard's capacity, and the board's perspective.
Background
Warren Buffett, 96, is stepping down as chairman of Berkshire Hathaway after 56 years, becoming chairman emeritus.
What's confirmed
- “I have served Berkshire since 1965," Buffett said.
- The 96-year-old Buffett will become chairman emeritus, and his son, Howard, will become Berkshire Hathaway's new chairman.
- Howard Buffett has been on the Berkshire Hathaway board since 1993.
- "Father Time always wins," Buffett wrote in the letter.
What's still developing
- The succession plan was long in the making, said Lawrence Cunningham, the director of the University of Delaware's Weinberg Center and author of several books on Berkshire.
- Howard, sometimes called "Howie," is Warren Buffett's middle child.
- He joined Berkshire's board in 1993, giving him 33 years of experience as a director before taking the chair.
- Warren Buffett said in a 2011 60 Minutes interview that he wanted Howard to eventually become Berkshire's nonexecutive chairman and protect its values without directing strategy or picking investments.
- In his parting letter as chairman, the elder Buffett told shareholders they should think of his son as an insurance policy they own but hope never to use.
- Howard Buffett, 71, won't be running Berkshire's sprawling collection of businesses.
- "The timing could be due to many things, including Warren's outlook, Howard's capacity and resolving other claims on his attention, or the board's outlook," he added.
- The 96-year-old billionaire and legendary investor will become chairman emeritus and stay on the company's board of directors, Berkshire said.
- Investor Adam Mead, who wrote "The Complete Financial History of Berkshire Hathaway," said Buffett seems to be moving to cushion the impact on Berkshire when he eventually dies.
- Berkshire's announcement didn't reveal any health issues for Buffett, but "he's now 96, so even a cold could be a health scare," Mead said.
- Shares of Berkshire Hathaway gained more than 5,500,000% from 1965 through 2024, compared with an over 39,000% gain in the S&P 500 during the same period, according to Buffett's final annual letter to shareholders in 2025.
- Known as the "Oracle of Omaha" for his investing prowess and his devotion to his Nebraska hometown, Buffett built a personal fortune of $145 billion, making him the 10th richest person in the world.