Updated Version 6 - Warren Buffett Steps Down as Berkshire Chairman, Succeeded by His Son Howard

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

The company appointed his son, Howard Buffett (a board member since 1993), as Chairman.

Warren Buffett transformed Berkshire from a struggling textile manufacturer into a $1.1 trillion diversified conglomerate, while establishing 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 were last down 0.3% in premarket trading. Buffett’s reputation is reflected in the company’s valuation: for years, investors have attached a "Buffett premium" to its stock.

According to data compiled by the London Stock Exchange Group (LSEG), since Buffett announced he would resign from the CEO position, the company’s price-to-book ratio has fallen from about 1.62 to 1.53.

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

“It was always a matter of when, not if. Buffett has exited gracefully,” said Brian Jacobsen, Chief Economist at Annex Wealth Management.

“Berkshire has been preparing for this transition for years, so this feels more like the culmination of a meticulously planned succession, not a sudden leadership change.”

A Six-Decade Legend

“Old Father Time always wins. But he’s been kind to me,” Buffett, now 96 and with Berkshire since 1965, wrote in a letter to shareholders on Friday.

Buffett’s influence extends far beyond Berkshire; his focus on long-term thinking, disciplined capital allocation, and straightforward management style has shaped generations of corporate leaders and investors.

“The culture Warren built and the values he championed will continue to be at the heart of Berkshire, with Howard serving as their guardian,” Abel said in a statement on Friday.

From M&A and succession to weathering turbulent markets, CEOs across companies look to Buffett for advice; his annual shareholders’ meeting has become a gathering place for investors.

“As Honorary Chairman, Mr. Buffett will continue to serve as a board member and provide his invaluable judgment and insights,” Berkshire said in the statement.

The honorary chairman title is usually bestowed upon retired board leaders or company founders in recognition of their past contributions and lasting impact.

Buffett first announced in May 2025 his intention to step back from the diversified conglomerate. Despite his advanced age, the decision surprised shareholders and analysts. After decades at the helm, he had become synonymous with the company, making the issue of his succession one of the most followed topics in American business.

Berkshire’s businesses include Geico auto insurance, BNSF railroad, multiple energy and industrial companies, Dairy Queen ice cream, and storied brands like World Book Encyclopedia. The company also holds hundreds of billions of dollars in stocks and U.S. Treasuries.

In the second quarter, its operating profit (link) rose 16% to $12.98 billion, exceeding analyst expectations. Net profit more than doubled to $25.67 billion, including unrealized gains and losses on stocks still held by Omaha, Nebraska-based Berkshire.

“It’s Not Complicated”

Unlike his father, Howard Buffett—known as “Howie”—will not hold an executive chairman role; his main responsibility will be preserving Berkshire’s corporate culture.

This culture allows Berkshire’s operating units to handle everyday business without interference from top management, though Abel is widely viewed as keener than Warren Buffett to address underperformance.

Abel oversees several of Berkshire’s business lines, while Vice Chairman Ajit Jain is responsible for insurance operations, and new president Adam Johnson heads the consumer, service, and retail subsidiaries.

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

“There’s nothing mysterious about it,” he told The Wall Street Journal in a January 2025 interview. “The culture is to keep things simple, do what needs to be done, but don’t do a bunch of unnecessary stuff; treat employees fairly, respect the managers, respect the shareholders. Tell them the bad news straight out and be honest.”

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