Warren Buffett has stepped down as chairman of Berkshire Hathaway, bringing forward the final stage of his leadership transition at the conglomerate. The 96-year-old will remain on the board as a director, while his son Howard becomes chairman with immediate effect.
Buffett said his age had influenced the decision. In a letter to shareholders, he noted that one of his great-grandchildren had recently turned one and was “moving a bit faster than I am these days”.
“Serving as your Chairman has been the privilege of a lifetime, and I have never taken your trust for granted. Father Time always wins. He has, however, been generous with me,” he wrote.
Howard Buffett, 71, has served as a Berkshire director for 33 years. Susan Decker will continue as the company’s lead independent director.
The move follows Buffett’s decision in January to relinquish the chief executive’s role to Greg Abel, after announcing the planned change in May 2025. His shift from chairman to chairman emeritus is effective immediately.
Warren Buffett steps down as Berkshire Hathaway chairman
Buffett said Abel had taken charge of Berkshire “in every respect” after previously running its non-insurance operations. He added that Abel was making decisions without second-guessing from him.
Abel has also begun using Berkshire’s substantial cash reserves, which had grown as Buffett criticised high valuations and a shortage of attractive investments.
Earlier this year, Abel bought $10 billion worth of shares in Alphabet, the parent company of Google, and agreed to acquire homebuilder Taylor Morrison in a deal with a total enterprise value of $8.5 billion.
With Abel firmly in control, Buffett said it was the right time to “complete the transition”.
“Greg runs the company; Howard will guard its culture and values — both worth more than anything on our balance sheet,” Buffett wrote. “Think of Howard as a policy the shareholders own and hope never to claim against.”
Berkshire’s class B shares fell 0.3 per cent on Friday and have risen 1 per cent so far this year, compared with an 11.5 per cent gain for the S&P 500. The shares have lagged as investors have pursued artificial intelligence-related investments.
Buffett said he looked forward to remaining a shareholder. Howard and his two siblings will also oversee the distribution of their father’s fortune, valued at $145 billion on the Bloomberg Billionaires Index, through their charitable foundations.
In a letter released in November, Buffett said he had no desire to control the giving of his wealth after his death. “Ruling from the grave does not have a great record, and I have never had an urge to do so,” he wrote.
