Less than a year after Greg Abel succeeded him as Berkshire Hathaway chair, Warren Buffett is stepping down as chair of the company's board and will become chairman emeritus.
The Omaha-based company, which announced Buffett's retirement Friday, Sept. 18, named his son, Howard Buffett, a director since 1993, as chair.
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.
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. But Berkshire remains the only financial firm in the trillion-dollar market-value club dominated by technology giants.
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"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."
Warren Buffett is stepping down as chair of the company's board and will become chairman emeritus.
Abel: Buffett's values will 'remain at the heart of Berkshire'
"Father Time always wins. He has, however, been generous with me," Buffett, 96, wrote in a letter to shareholders Friday. He has been with Berkshire since 1965.
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, who succeeded Buffett as CEO on Jan. 1, said in a statement on Friday.
CEOs have looked to Buffett, known as the "Sage of Omaha," 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 chair emeritus is typically an honorary title given to a retired board leader or company founder to recognize 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. In Des Moines, it owns MidAmerican Energy, Iowa's largest utility. The city is also the headquarters of Berkshire Hathaway Energy, the wider holding company for the conglomerate's utilities.
Berkshire Hathaway also owns Nebraska Furniture Mart in Clive and Homemakers Furniture in Urbandale.
In addition, it owns hundreds of billions of dollars of both stocks and US Treasuries.
In the second quarter, Berkshire Hathaway's operating profit rose 16% to $12.98 ​billion, topping analyst forecasts. Net income more than doubled to $25.67 billion, including unrealized gains and losses on stocks that Berkshire still owns.
Younger Buffett won't have management role as chair
Unlike his father, Howard Buffett, known as Howie, would not have a management role as chair, and his main responsibility would be to preserve Berkshire's culture.
That culture includes letting Berkshire's operating businesses handle their day-to-day affairs without interference from upper management, though Abel is widely seen as more keen than Warren Buffett to address performance shortfalls.
Abel has direct oversight of several Berkshire business lines, while Vice Chairman Ajit Jain oversees insurance and newly installed President Adam Johnson oversees consumer, services and retail subsidiaries.
Howard Buffett had his own definition of Berkshire's culture.
"It's not rocket science," he told the Wall Street Journal in January 2025. "The culture is to keep things simple, to do what you need to do but don't do a lot of things you don't need to do, treat people fairly, respect your managers, respect your shareholders. Tell them the bad news upfront, be honest."
Reuters contributed to this article.
