Warren Buffett, the 96-year-old chairman and CEO of Berkshire Hathaway, announced Friday that he is stepping down as chairman of the conglomerate, effective immediately. In a letter to shareholders, Buffett stated he will assume the role of chairman emeritus, remaining on the board of directors while continuing to offer his guidance.
Howard Buffett, his son and a Berkshire director since 1993, has been named as his successor. Berkshire Hathaway confirmed the transition in a statement, noting that Buffett’s new role will allow him to retain his membership on the board and provide ongoing strategic input.
Buffett’s departure as chairman follows his May 2025 announcement that he would step down as CEO, a position he held for decades. Greg Abel, Buffett’s longtime lieutenant, succeeded him as CEO in late 2024, marking the first time in Berkshire’s history that leadership was passed to someone other than Buffett.
In his letter, Buffett reflected on his tenure, writing: ‘Father Time always wins. He has, however, been generous with me.’ He expressed confidence in Berkshire’s future under the new leadership, stating that the company is in ‘excellent hands.’
Berkshire Hathaway, which Buffett transformed from a struggling textile business into a $1 trillion conglomerate, owns a diverse portfolio of companies including Geico, BNSF Railway, Dairy Queen, Duracell, and Fruit of the Loom. The company’s market capitalization breached the $1 trillion mark in late 2024, reflecting its status as one of the world’s most valuable firms.
Under Buffett’s leadership, Berkshire’s shares delivered a compounded annual return of 19.7%, nearly double the S&P 500’s 10.5% return over the same period. His investment philosophy, emphasizing long-term value and disciplined capital allocation, has influenced generations of investors and corporate leaders.
Buffett’s decision to step down as chairman comes after decades of guiding Berkshire Hathaway, first as CEO and later in his dual role. His son Howard, who has served on the board for over 30 years, will now oversee the company’s governance while Abel continues to lead its operations.
Berkshire Hathaway emphasized that Buffett’s legacy will endure through the company’s culture and values, which Abel described as ‘the heart of Berkshire.’ The transition reflects a carefully planned succession process, with Buffett’s retirement marking the end of an era for one of corporate America’s most iconic figures.