Berkshire Hathaway announced on Friday that Warren Buffett is stepping down as chairman of the conglomerate and accepting the title of honorary chairman immediately.
Earlier this year, Buffett resigned as CEO, handing over leadership to his long-time deputy, Greg Abel. In a letter to shareholders, the 96-year-old Buffett wrote: 'Father Time always wins. But he has been generous to me.'
The conglomerate appointed his son, Howard Buffett, who has been a director at Berkshire since 1993, to the position of chairman. A statement from Berkshire said: 'As honorary chairman, Mr. Buffett will remain a member of the Board of Directors and continue to share his valuable assessment and vision.'
Buffett transformed Berkshire into a conglomerate worth about $1.03 trillion, including numerous businesses such as the insurance company Geico, the BNSF railroad, Berkshire Hathaway Energy, the ice cream chain Dairy Queen, the underwear brand Fruit of the Loom, and the plush toy manufacturer Squishmallows.
Greg Abel stated in a Friday release: 'The culture built by Buffett and the values he championed will remain the foundation of Berkshire, and Howard will be its custodian.'
Buffett's influence extends far beyond Berkshire, as he shaped generations of corporate leaders and investors through his emphasis on long-term thinking, disciplined capital allocation, and simple management. Company executives across America sought his advice on everything from acquisitions and succession to navigating periods of market instability, and his annual shareholder meetings became a gathering place for investors seeking to understand the broader business landscape.
Buffett first announced his plans to leave the conglomerate in May 2025, which came as a surprise to shareholders and analysts despite his age. After decades of leadership, he had become synonymous with the company, and his succession was one of the most closely watched events in American business.
In August, Berkshire reported that it began reducing its massive cash reserves in the second quarter, investing billions of dollars in stocks like Alphabet and buying back billions of its own shares, while reporting higher-than-expected profits. Quarterly operating income grew by 16% to $12.98 billion, exceeding analyst forecasts, and net income more than doubled to $25.67 billion, including unrealized gains and losses on shares still held by the Omaha, Nebraska-based Berkshire.