Warren Buffett, founder of Berkshire Hathaway Inc., is stepping down as chairman of the company’s board of directors. He will be replaced by his son Howard, effectively bringing to an end Buffett’s nearly six-decade tenure at the helm of the conglomerate. Bloomberg reports, UNN writes.
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The billionaire will become honorary chairman of the company with immediate effect, according to a statement released on Friday. The elder Buffett will remain a member of the board of directors, while his son, who has been a company director since 1993, will assume the top position.
This is another step in the process of transferring control of one of the world’s best-known companies. Earlier this year, Greg Abel replaced Buffett as the company’s chief executive officer.
Warren’s influence on Berkshire and its owners is unparalleled in the history of American business. The culture Warren created and the values he championed will remain at the core of Berkshire, and Howard will be their guardian
Buffett, who is 96, transformed the Omaha, Nebraska-based company, once an aging textile mill, into a conglomerate worth more than $1 trillion.
Buffett had been gradually reducing his role at the company, handing Abel responsibility for preparing the annual shareholder letter and not appearing on stage during the annual meeting in May. In July, Buffett said that by 2034 he would completely dispose of his stake in Berkshire Hathaway, which is worth about $140 billion. Earlier this year, he told CNBC that he had recently broken his leg.
In a letter to shareholders, Buffett said he decided to step down after Abel exceeded his "extremely high" expectations as chief executive officer.
He has been making important decisions for some time, and I have not had to think twice about any of them. So the right time has come to complete the transition
Abel has already begun using the company’s enormous cash reserves, including to buy back its own shares, after the company announced that Buffett would step down as chief executive officer at the 2025 annual meeting. Berkshire’s cash holdings fell to $365.5 billion in the second quarter from a record nearly $397 billion in the previous quarter.
The company’s share price has remained mostly stable this year, rising 1.3%, while the S&P 500 stock index has gained 11.6%. Buffett often used the index to compare Berkshire’s performance.
As the publication notes, although Abel will run the business, Howard Buffett, who has served on Berkshire’s board of directors for 33 years, will be responsible for the company’s culture and values, "which together are worth more than everything on our balance sheet," Buffett wrote in a letter announcing his departure.