Warren Buffett has stepped down as chairman of Berkshire Hathaway, completing a historic leadership transition at the company he transformed from a struggling textile business into a conglomerate worth more than $1 trillion.
Buffett, 96, becomes chairman emeritus effective immediately and will remain on Berkshire’s board of directors. His son, Howard Buffett, who has served as a Berkshire director since 1993, succeeds him as chairman.
The change comes after Buffett relinquished the CEO position and longtime Berkshire executive Greg Abel took control of the company at the beginning of this year. Abel will continue running Berkshire, while Howard Buffett’s role as chairman will center on protecting the corporate culture and values his father developed over more than six decades.
Warren Buffett took control of Berkshire in 1965 and served as chairman beginning in 1970. Under his leadership, the former textile company grew into an enormous collection of businesses that includes GEICO, BNSF Railway, energy and industrial operations, along with a massive portfolio of stocks and U.S. Treasury securities.
Buffett said he remains confident in Berkshire’s future and plans to continue providing his judgment and perspective as a member of the board. The transition leaves day-to-day leadership with Abel while keeping both Warren and Howard Buffett involved in Berkshire’s governance.
The Readovia Lens
Warren Buffett’s departure from the chairman’s seat marks the end of an extraordinary era in American business, but Berkshire has spent years preparing for this moment. The bigger test now is whether the company’s unusual combination of decentralized management, long-term investing and corporate independence can endure without Buffett occupying either of its two top leadership positions.
