Abstract:
Warren Buffett steps down as chairman of Berkshire Hathaway (BRK.B), the $1 trillion conglomerate he has run since 1965. The 96-year-old legendary investor announced the news in an open letter to shareholders on Friday.
Another announcement from the company stated that Buffett will serve as honorary chairman immediately while continuing to retain his seat on the board of directors. According to the already drawn up succession plan, his son Howard Buffett took over as chairman, and Susan Decker continued to serve as lead independent director.
Buffett wrote:
"Father Time will win in the end. But he treats me well and gives me the honor to witness Berkshire's development today. I am more confident in the company's future than ever before."
Just over nine months have passed since 64-year-old Greg Abel became CEO and Buffett remained as chairman. As early as May 2025, Buffett disclosed this personnel plan to the public for the first time at Berkshire's annual shareholder meeting. Although he was already old at the time, the news still shocked thousands of attendees.
Abell said in the company's announcement: "The corporate culture and values established by Warren will remain the core of Berkshire, and Howard will protect them all."
Buffett wrote in the letter: "Greg will be responsible for running the entire company; Howard will guard the corporate culture and values - the value of these two is higher than any assets on the balance sheet. Howard can be understood as an insurance policy held by shareholders, hoping that claims will never be used."
The Berkshire business legend created by Buffett is unparalleled in the American corporate world. At age 34, he took over a failing New England textile mill and, over sixty years, built it into a financial and industrial powerhouse. The company had operating profits of $44.5 billion last year and has nearly 400,000 employees. During Buffett's tenure, Berkshire has delivered shareholders a compounded annual return of 19.7%, nearly double the S&P 500.
Chairman who remains active
As chairman this year, Buffett is still deeply involved in company affairs. Abel revealed in an interview in March that he communicates with Buffett almost every day.
In May, Buffett attended Berkshire's much-anticipated annual shareholder meeting, made a brief speech at his seat, and accepted an exclusive interview with Becky Quick. This conference, known as the "Woodstock of Capitalists", was not hosted by Buffett for the first time, but was led by Abel.
In July, Buffett revealed to , that he was responsible for Berkshire’s recent large investment in Alphabet (Google’s parent company). After a $10 billion private placement in June, Alphabet has become Berkshire's third-largest holding, behind Apple and American Express.
In the same interview, Buffett mentioned that he broke his leg a few weeks ago but was recovering at the time.
When preparing to hand over management to Abel last year, Buffett had already admitted that age brought more and more physical limitations. In his 2025 Thanksgiving letter to shareholders, he wrote: "Unexpectedly, I feel okay overall. Although my movements are slow and reading is becoming more and more difficult, I still come to work five days a week."
In Friday's letter, Buffett also joked about this: "Recently, I celebrated my 96th birthday with my relatives and friends, and one of my great-grandsons just turned one year old. Today, the little ones can run faster than me."
Berkshire will underperform the market in 2026
Berkshire's stock price has been weak this year, and Buffett has stepped down as chairman, further increasing the pressure on Abel to deliver results. The stock is up just 1% in 2026, while the S&P 500 is up more than 11%. Rising oil prices and market capital's preference for high-growth sectors are part of the reason. Shareholders are also waiting to see whether the new CEO can skillfully manage the company's huge funds like Buffett.
For now, if Abel can use the company's huge cash reserves of $365.5 billion to increase stock repurchases, investors will most likely agree. Abel has already started doing this, with buybacks reaching $4.5 billion in the second quarter.
In a shareholder letter on Friday, the company's largest shareholder spoke highly of Abel's work so far: "I had high expectations for him from the beginning, and he has exceeded my expectations."
Buffett wrote at the end of the letter: "The company is in the hands of very reliable people, and I look forward to continuing to be a shareholder of Berkshire with everyone."
Abell said: "Warren said in today's letter that working at Berkshire is 'the best job in the world.' He has given me this heavy responsibility - the best position in American business, and has given me ample space to manage in accordance with Berkshire's culture and values. As Howard becomes chairman and Sue serves as lead independent director, I look forward to continuing to work side by side with Warren and cherish this opportunity."
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