Warren Buffett steps down as Berkshire Hathaway chairman
Berkshire Hathaway’s 96‑year‑old founder, Warren Buffett, has stepped down as chairman and become chairman emeritus, with his son Howard Buffett taking the chair. Greg Abel remains CEO, continuing the split of leadership roles that began in 2025. The transition completes a long‑planned succession t…
By Felo News Desk · Published
On September 18, 2026, Berkshire Hathaway announced that its iconic founder, Warren Buffett, would step down as chairman of the board and assume the title of chairman emeritus. The move, effective immediately, follows Buffett’s earlier resignation as chief executive officer at the start of 2026, when long‑time lieutenant Greg Abel took the reins.
Leadership transition at the helm of a trillion‑dollar conglomerate
Buffett, who has been at Berkshire’s core since 1965 and served as chairman since 1970, has guided the investment giant for 56 years. His departure from the chairmanship marks the end of an era in which he held both the CEO and chairman positions, a dual role that was split last year to bring fresh leadership to the company’s day‑to‑day operations.
In a letter to shareholders, Buffett explained the timing of the transition. He said, “So the timing is right to complete the transition. I will become Chairman Emeritus and remain a Director. My son, Howard, will succeed me as Chairman.” The letter also praised Abel’s performance, stating that he had “exceeded expectations” and was fully in control of the company’s operations.
Howard Buffett takes the chair
Howard G. Buffett, 71, has served on Berkshire’s board since 1993 and has been a key figure in the company’s governance for over three decades. He is now the new chairman of the board, tasked with overseeing the board’s work while Abel runs the business. Abel’s role as CEO remains unchanged, and he continues to lead Berkshire’s investment decisions, acquisitions, and day‑to‑day management.
Abel, who assumed the CEO role on January 1, 2026, has been praised by both Buffett and the board for his leadership. “The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian,” Abel said in a statement released on the day of the announcement.
Buffett’s legacy and continued influence
As chairman emeritus, Buffett will stay on Berkshire’s board of directors and continue to offer his judgment and perspective. While he will no longer be involved in the day‑to‑day operations, his influence remains significant. Buffett’s investment philosophy—emphasizing long‑term thinking, disciplined capital allocation, and straightforward management—has shaped corporate leaders and investors worldwide.
Buffett’s annual shareholder meetings, held each year in Omaha, Nebraska, have become a focal point for investors seeking insight into the broader business landscape. Even in his emeritus role, he is expected to attend these meetings and provide guidance to shareholders.
Financial performance and strategic moves
In the months leading up to the leadership change, Berkshire reported strong financial results. Its quarterly operating profit rose 16% to $12.98 billion, surpassing analyst forecasts, while net income more than doubled to $25.67 billion, largely due to unrealised gains and losses on its extensive stock holdings.
The conglomerate has also been active in investing its vast cash reserves. In the second quarter, Berkshire began reducing its cash pile, investing billions in companies such as Alphabet and repurchasing shares of its own stock. These moves have kept the company’s portfolio dynamic and have contributed to its outperformance relative to the S&P 500.
What’s next for Berkshire Hathaway?
The transition leaves the company in a position of stability. Greg Abel remains CEO, steering the company’s investment strategy, while Howard Buffett will focus on governance and preserving the culture that Buffett built. The board also continues to be led by independent director Susan L. Decker, who will remain the lead independent director.
As the company moves forward, investors will watch how Abel’s leadership style and Howard’s governance approach influence Berkshire’s long‑term strategy. The company’s core businesses—ranging from insurance (Geico) and railroads (BNSF) to energy (Berkshire Hathaway Energy) and consumer brands (Dairy Queen, Fruit of the Loom)—remain integral to its diversified portfolio.
Buffett’s decision to step down as chairman and CEO was reportedly driven by his age and a desire to spend more time with family, as hinted in his letter to shareholders. The move also reflects a broader trend of legacy leaders making way for new generations in large conglomerates.
Key facts
- Warren Buffett steps down as chairman, becoming chairman emeritus
- Howard Buffett, 71, becomes new chairman of the board
- Greg Abel remains CEO, having taken the role in 2026
- Buffett will stay on the board and continue to advise
- Berkshire’s financial performance remains strong with high profits and strategic investments
- The transition reflects Buffett’s focus on long‑term leadership succession
- The company’s culture and values will be preserved under Howard’s chairmanship
Why it matters
Buffett’s departure signals a major shift in leadership for one of the world’s most influential conglomerates, affecting investors, employees, and the broader market. The transition also highlights how legacy leaders can pass the torch while maintaining continuity and stability.
Frequently asked questions
Why did Warren Buffett step down as chairman?
Buffett cited his age and a desire to spend more time with family as reasons for stepping down, while ensuring a smooth transition to his son Howard and CEO Greg Abel.
What does chairman emeritus mean?
Chairman emeritus is an honorary title that allows a former chairman to remain on the board and offer guidance, but without day‑to‑day leadership responsibilities.
Will Greg Abel remain CEO after the transition?
Yes, Greg Abel will continue as CEO, overseeing Berkshire’s operations and investment strategy.
How will Howard Buffett influence Berkshire?
Howard will oversee the board’s governance and preserve the culture and values established by his father, while Abel handles business operations.
Sources
- [1] khaleejtimes.com
- [2] gulfnews.com
- [3] dailymail.co.uk
