Updated Version 5 - Warren Buffett Steps Down as Chairman of Berkshire Hathaway, His Son Howard Takes Over

From paragraph 20, details about Howard Buffett have been added; paragraph 4 has updated stock price information

Manya Saini/Jonathan Stempel

Reuters, September 18 - Berkshire Hathaway (BRKa.N) announced on Friday that Warren Buffett will step down as Chairman and assume the title of Honorary Chairman, effective immediately. Nine months earlier, he had handed over the CEO position to long-time deputy Greg Abel.

The company has appointed his son Howard Buffett, who has served as a director since 1993, to take over as Chairman.

Warren Buffett transformed Berkshire from a struggling textile company into a $1.1 trillion diversified conglomerate, building an investment philosophy that has influenced generations of investors and executives, making him one of the most influential figures in modern American business.

Berkshire’s Class B shares recently fell 0.3% in pre-market trading. Buffett’s reputation is also reflected in the company’s valuation, as investors have long assigned a ‘Buffett premium’ to its stock over the years.

According to data compiled by London Stock Exchange Group (LSEG), since Buffett announced he would step down as CEO, the group’s price-to-book ratio has dropped from about 1.62 to 1.53.

Among the trillion-dollar market cap club dominated by tech giants, Berkshire remains the only financial enterprise.

“It was always a question of ‘when’, not ‘if’. Buffett has exited gracefully,” said Brian Jacobsen, Chief Economic Strategist at Annex Wealth Management.

“Berkshire has been preparing for this transition for years, so this is more like a well-orchestrated succession plan reaching completion, rather than a sudden leadership change.”

A Six-Decade Legend

“Old Father Time always wins. Still, he’s been kind to me,” wrote the 96-year-old Buffett, who has been with Berkshire since 1965, in a letter to shareholders on Friday.

Buffett’s influence long ago extended beyond Berkshire itself, with his emphasis on long-term thinking, disciplined capital allocation, and straightforward management style shaping generations of business leaders and investors.

“The culture Warren built and the values he advocated will always be central to Berkshire, and Howard will be the vigilant guardian of those values,” Abel said in a statement Friday.

From mergers and acquisitions to succession planning and handling market turmoil, CEOs have sought Buffett as their advisor; his annual shareholder meetings have become a pilgrimage for investors.

“As Honorary Chairman, Mr. Buffett will continue to serve on the Board and provide his valuable judgment and insights,” Berkshire said in the statement.

Honorary Chairman is usually a title granted to retired board leaders or company founders, recognizing their past contributions and lasting influence.

Buffett first announced his plan to step back from the diversified conglomerate in May 2025; although he is advanced in age, shareholders and analysts were still surprised at the news. Having helmed the company for decades, he became synonymous with the firm, making his succession one of the most closely watched issues in U.S. business.

The group’s businesses include Geico auto insurance, BNSF Railway, multiple energy and industrial companies, Dairy Queen ice cream, and historic brands such as World Book Encyclopedia. Berkshire also holds stock and U.S. Treasury assets worth hundreds of billions of dollars.

“It's not rocket science”

Unlike his father, Howard Buffett (known as “Howie”) will not take on managerial duties as Chairman; his main responsibility will be to maintain Berkshire’s corporate culture.

This culture involves allowing Berkshire’s operating businesses to handle daily affairs without senior management interference, although Abel is generally viewed as more eager than Warren Buffett to address underperforming units.

Abel directly oversees several lines of business at Berkshire, while Vice Chairman Ajit Jain supervises insurance, and new President Adam Johnson manages the consumer, service, and retail subsidiaries.

Howard Buffett has his own definition of Berkshire’s corporate culture.

“It's not all that complicated,” he told The Wall Street Journal in a January 2025 interview. “The culture is to keep things simple, do what you should do, but don’t do a lot of unnecessary things; treat employees fairly, respect managers, respect shareholders. When there’s bad news, deliver it straightforwardly and be honest.”

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