96-Year-Old Buffett Steps Down as Chairman of Berkshire, Becomes Honorary Chairman

Warren Buffett, 96, announced in a letter to shareholders that he is stepping down as Chairman of Berkshire Hathaway effective immediately, transitioning to the role of Honorary Chairman while remaining a board member. The board elected his son, Howard Buffett, as Chairman according to the established succession plan, while Susan Decker continues as Lead Independent Director.

This move comes about nine months after Greg Abel took over as CEO, while Buffett retained the chairman role. Buffett wrote that Abel has exceeded his "extremely high expectations," and key decisions have been made by Abel for some time, leading him to conclude that now is the right time for the transition. He also noted that "time's father always wins," mentioning his one-year-old great-grandson who "runs a bit faster than I do."

Howard has been a board member since 1993, with a longer apprenticeship than Buffett's 34 years of preparation before taking over the company. In his letter, Buffett clearly delineated responsibilities: Abel will run the company, while Howard will safeguard its culture and values, which he stated are "worth more than anything on the balance sheet," likening Howard to a policy that shareholders hold and hope never to claim. Howard also leads a foundation focused on global food security and conflict resolution but does not handle daily management.

In a company statement, Abel said that the culture and values established by Warren will always be at the core of Berkshire, and Howard will be the guardian of these values. The company has a market value of approximately $1.1 trillion, with operations spanning insurance, Burlington Northern Santa Fe Railway, energy, ice cream, and lingerie, and holds stock positions in American Express, Apple, Coca-Cola, among others.

Buffett took over the textile company in 1965 and has served as chairman since 1970; he has handed over the writing of the annual report to Abel and did not appear at the annual meeting in May this year, planning to divest about $140 billion of Berkshire shares before 2034. Following the announcement, A-class and B-class shares experienced limited fluctuations.

Market-wise, this represents a repricing after the founder's symbolic exit from operational control and the chairman position: what is being sold is the premium of "Buffett himself still holding the final decision," while what is being bought is Abel's capital allocation and cash deployment that has been in operation for nine months. Funds are now more focused on cash deployment, buybacks, and acquisitions rather than the chairman title; the beneficiaries are the management team continuing to allocate insurance float, while the burden falls on passive holders who have tied their valuations entirely to Buffett's personal brand.

Since Abel took office, he has begun deploying significant cash, including buybacks, approximately $10 billion in Alphabet shares, and about $8.5 billion to acquire homebuilder Taylor Morrison.

Source: Public Information