Berkshire Hathaway said yesterday 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 per cent 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.”
“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 yesterday.
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 yesterday.
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 recognise 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.
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