Warren Buffett Steps Down as Berkshire Chairman; Son Howard Takes Over

Warren Buffett, the "Oracle of Omaha," has stepped down as chairman of Berkshire Hathaway after leading the company for more than 60 years. His eldest son, Howard Buffett, will become chairman, while Chief Executive Officer Greg Abel will run the company under the long-planned succession structure.

Berkshire Hathaway said Sept. 18 that it had named Buffett chairman emeritus and elected Howard Buffett as the new chairman of the board. The changes took effect immediately. Buffett is leaving the chairman's post but will remain a director and advise on major company decisions.

Buffett, now 96, took control of Berkshire Hathaway in 1965, when it was a struggling textile company. He later built it into a conglomerate valued at more than $1 trillion by investing cash generated from its insurance operations into stocks and corporate acquisitions. Buffett had served as Berkshire's chairman since 1970.

The move effectively completes Berkshire's management succession process, which had unfolded over several years. Buffett stepped down as CEO at the end of last year, and Abel has overseen the company's operations since January. Abel has run Berkshire's main businesses outside the insurance unit since 2018, building experience as Buffett's successor.

In a letter to shareholders, Buffett wrote, "Time always wins in the end," and said this was the right moment to complete the succession process. He said expectations for Abel were high from the outset, but that Abel had surpassed them. Abel has handled key decisions, Buffett wrote, and never gave him reason to question them.

Howard Buffett, the new chairman, will focus less on direct involvement in management than on preserving Berkshire's corporate culture and operating principles. "Greg will run the company, and Howard will protect Berkshire's culture and values," Buffett wrote. "Those two things are more valuable than any asset on the company's balance sheet."

Howard Buffett, 71, has served as a Berkshire director since 1993. He is also chairman and CEO of the Howard G. Buffett Foundation, which works on agriculture, food security and conflict mitigation. Susan Decker will remain Berkshire's lead independent director.

Abel said Buffett's impact on Berkshire and its shareholders has no parallel in American corporate history. The culture and values Buffett built will remain at the center of the company, he added, and Howard Buffett will help preserve them.