Warren Buffett has stepped down as chairman of Berkshire Hathaway after more than six decades with the company, formally handing the chairmanship to his son, Howard Buffett, as part of a long-planned leadership transition.
The 96-year-old investment legend will remain on Berkshire’s board as chairman emeritus, retaining an advisory role and his position as a shareholder. Howard Buffett, who has served on the company’s board since 1993, succeeds him as chairman.
The transition comes nine months after Greg Abel took over as Berkshire Hathaway’s chief executive, completing the separation of the company’s executive and board leadership under the succession plan announced by Buffett.
In a letter to shareholders on Friday, Buffett said the timing was right to complete the transition, noting that Abel had already been making the company’s major decisions.
“Father Time always wins. He has, however, been generous with me,” Buffett wrote.
He added that Berkshire was “in excellent hands” and said he looked forward to remaining a shareholder.
Buffett said Howard’s role would focus particularly on preserving the culture and values that have defined Berkshire, while Abel would continue to run the company as chief executive.
“Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet,” Buffett wrote.
Howard Buffett, 71, said his long association with his father had prepared him for the responsibility.
“I feel I’m prepared for it because he prepared me. That’s a lot of years of influence and a lot of years of teaching,” he said.
Berkshire Chief Executive Officer Greg Abel said Buffett’s influence on the company and its shareholders was unparalleled and that the principles established during his tenure would remain central to the conglomerate.
“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Abel said.
“The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.”
Buffett joined Berkshire in 1965 and transformed what was then a struggling textile business into a sprawling conglomerate with interests across insurance, energy, railroads, manufacturing and consumer businesses. The company’s market value is now about $1.1tn.
His departure from the chairmanship marks another major step in the succession of one of the world’s most closely watched corporate leaders, although he will remain involved through his board position and advisory role.
