Buffett exits Berkshire chairmanship after six decades, son Howard takes over

Summary

• Warren Buffett, 96, stepped down Friday as Berkshire Hathaway chairman and was named chairman emeritus.
• His son Howard Buffett, 71, a director since 1993, becomes non-executive chairman with no management role.
• The move completes a handover that began when Greg Abel took over as CEO nine months ago.

The latest

More than six decades at the top of Berkshire Hathaway ended on Friday, with Warren Buffett relinquishing the chairmanship and taking the title of chairman emeritus, Reuters reported. The 96-year-old investor remains a director. His oldest son, Howard Buffett, 71, becomes non-executive chairman of the $1.1 trillion conglomerate.

Details

• The succession: Reuters reported that Howard Buffett has served on Berkshire's board since 1993 and takes the chairmanship without an executive role. His central responsibility is described as preserving the company's culture rather than directing operations or capital allocation.
• Abel's framing: Greg Abel, who succeeded Buffett as chief executive nine months ago, said the culture Warren built and the values he championed will remain at the heart of Berkshire, and that Howard will be their guardian. Warren Buffett stays on the board alongside him.
• Buffett's letter: In a letter to shareholders, Buffett wrote that "Father Time always wins," adding that time had nonetheless been generous with him and that sixty-plus years in he still holds the best job in the world. No further change to his board seat was announced.
• The scale: Buffett turned a failing New England textile company into a conglomerate valued at $1.1 trillion, according to Reuters, promoting a value-investing philosophy that shaped generations of investors and earned him the nickname the Oracle of Omaha.
• The holdings: Berkshire's businesses span GEICO car insurance, the BNSF railroad, energy, industrial and retail units, Dairy Queen, Ginsu knives and the World Book Encyclopedia. Its stock portfolio includes Apple, American Express, Alphabet and Coca-Cola, worth hundreds of billions of dollars.
• Market reaction: Berkshire shares rose 0.4% in afternoon trading on Friday. Through Thursday, the stock had lagged the S&P 500 by roughly 11 percentage points in 2026, and many observers judge the so-called Buffett premium in the share price is now largely gone.
• Abel's moves: Since becoming CEO, Abel has spent $16.8 billion over two days to acquire the home builder Taylor Morrison and enlarge Berkshire's stake in Alphabet. The company closed June with a near-record $364.7 billion in cash.
• The fortune: Forbes estimates Buffett's wealth at about $145 billion. Reuters noted the figure would be far higher had he not given away more than half of his Berkshire stock to charity since 2006.
• Analyst view: Cathy Seifert, an analyst at CFRA Research, said it now falls to Abel to ease investor concerns over Berkshire's capital allocation strategy, given that Warren Buffett is genuinely no longer involved in running the company.

Background

Buffett took control of Berkshire Hathaway in the 1960s when it was a struggling textile maker. He relinquished the chief executive role to Greg Abel, a longtime lieutenant, roughly nine months before giving up the chairmanship.

Between the lines

The split of roles is the clearest signal yet of how Berkshire intends to manage life after Buffett: capital decisions sit with Abel, who has already committed $16.8 billion in two days, while the chairmanship becomes a custodial post held by a director with no management brief. Seifert's comment and the stock's 11-point underperformance point to the same pressure — proving the strategy without the founder attached to it.

What's next

Watch how Abel deploys the $364.7 billion cash pile and whether Berkshire narrows its gap with the S&P 500 through year-end, plus any board changes affecting Warren Buffett's remaining directorship.

Source: Reuters