Updated version 7 - Warren Buffett Steps Down as Chairman of Berkshire, Succeeded by His Son Howard

Rewrite of the first paragraph; comments from Buffett and analysts, details on Berkshire and succession plans, Buffett's wealth, background, paragraphs 2-10, 13, 17-19, 26-29

Manya Saini/Jonathan Stempel

Reuters, September 18 - Warren Buffett stepped down as chairman of Berkshire Hathaway (BRKa.N) on Friday, ending a six-decade journey building the diversified conglomerate, during which he arguably became the world’s most respected investor.

The 96-year-old Buffett was named Honorary Chairman, while his eldest son, Howard Buffett (71, a director since 1993), will serve as non-executive Chairman.

The management shuffle comes nearly nine months after Buffett stepped down as CEO, passing the baton to longtime deputy Greg Abel. Warren Buffett will continue to serve on the board.

Known as the “Oracle of Omaha,” Warren Buffett transformed Berkshire from a struggling New England textile company into a $1.1 trillion conglomerate. He championed a value-driven investment philosophy that shaped generations of investors and executives; his approachable style made his principles accessible and earned him admiration across the globe.

“Time will eventually win. But he’s been awfully generous to me,” Buffett wrote in his letter to shareholders. “After more than 60 years on the job, I still have the best job in the world. Not many of my age can say the same, and as for the future, I’ve never looked forward to it as I do now.”

Berkshire’s empire comprises GEICO insurance, BNSF Railway, a host of energy, industrial, and retail businesses, Dairy Queen, and classic brands such as Ginsu knives and World Book Encyclopedia.

The firm also holds a portfolio worth hundreds of billions in stocks, including Apple AAPL.O, American Express AXP.N, Google parent Alphabet GOOGL.O, and Coca-Cola KO.N. Berkshire stands out in the trillion-dollar club led by tech giants.

Berkshire shares rose 0.4% in afternoon trading.

This move is the latest step in a succession process years in the making, and Buffett’s reduced involvement comes as no surprise.

The billionaire did not share new details about his health, but noted he had recently met his one-year-old great-grandchild, who “moves around faster than I do.”

“It’s always been a question of when, not if. Buffett has exited the stage with grace,” said Brian Jacobsen, chief economist at Annex Wealth Management in Brookfield, Wisconsin. “It’s more a careful completion of succession than a sudden transfer of power.”

Abel says Howard Buffett will continue core values

Buffett’s influence extends far beyond Berkshire, as he shaped generations of business leaders and investors with an emphasis on long-term thinking, disciplined capital allocation, and straightforward management.

During times of economic or geopolitical turmoil, investors turn to Buffett—an outspoken proponent of U.S. capitalism—for reassurance and advice. His annual shareholders weekend draws tens of thousands to Omaha to celebrate Berkshire’s achievements and reinforce their investment principles.

“The culture Warren built and the values he championed will always be central to Berkshire, and Howard will be the steward of those values,” Abel said Friday.

The title of Honorary Chairman is typically given as a tribute to retired founders, executives, and directors for their lasting contributions.

Though Abel’s transition to CEO was announced as far back as 2021, many were surprised when Buffett said in May 2025 he would step aside as CEO.

Berkshire said Buffett will continue to provide “his invaluable judgment and insights” as a board member.

According to Forbes, Buffett’s net worth stands at around $145 billion. If not for his donation of over half his Berkshire shares to charity since 2006, his wealth would be much higher.

“Keep It Simple”

Unlike his father, Howard Buffett—known as “Howie”—will not hold management responsibilities as chairman, and his main role will be to safeguard Berkshire’s corporate culture.

This culture includes allowing Berkshire’s operating businesses to handle day-to-day matters free from upper management intervention, though Abel is widely seen as more hands-on than Warren Buffett, especially in addressing underperformance.

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

“There’s nothing mysterious about it,” he said in a January 2025 interview with The Wall Street Journal. “It’s a keep-it-simple culture. Do what’s needed, don’t do a lot that’s unnecessary; treat employees fairly, respect managers, respect shareholders. Any bad news, tell them straight—be honest.”

Abel, 64, directly oversees several Berkshire units. Vice Chairman Ajit Jain heads the insurance segment, while newly appointed President Adam Johnson leads the consumer, service, and retail businesses.

Since becoming CEO, Abel has started to make his mark, including a $16.8 billion, two-day acquisition of homebuilder Taylor Morrison and increasing the company’s stake in Alphabet.

As of the end of June, Berkshire held $364.7 billion in cash, near an all-time high, giving Abel latitude to acquire more businesses and stocks.

Through Thursday, Berkshire shares underperformed the S&P 500 index .SPX by about 11 percentage points in 2026.

The company’s price-to-book ratio (assets minus liabilities) is near 1.5. Many observers believe the “Buffett premium” in the stock price has either disappeared or is nearly gone.

“This was a company led by a legendary value investor, but that’s no longer the case,” said CFRA Research analyst Cathy Seifert. “Now that Warren Buffett is truly out of the picture, it’s up to Greg to address concerns about Berkshire’s capital-allocation approach.”

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