Jack Sidders
Berkshire Hathaway founder Warren Buffett is stepping down as the company’s chairman to be replaced by his son Howard.
The billionaire, 96, will become chairman emeritus of the company with immediate effect, according to a statement Friday. The elder Buffett will remain a member of the board while his son, a director of the company since 1993, steps in as his successor.
The elevation is the latest step in the succession process at one of the world’s most storied investment titans. Buffett was replaced as chief executive officer of the company by Greg Abel earlier this year.
“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Abel said in the statement. “The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.”
Buffett relinquishes the chairmanship after roughly six decades at the helm of the Omaha, Nebraska-based company, which was once an ageing textile mill the legendary investor later turned into a more than $1 trillion conglomerate.
In a letter to shareholders, Buffett said he made the decision to step down after Abel exceeded his “sky-high” expectations as CEO.
“He has been making the decisions that matter for some time now, and I have not had to think twice about any of them,” Buffett wrote. “So the timing is right to complete the transition.”
Abel has already begun deploying the company’s vast cash pile, including in share buybacks. Berkshire Hathaway’s stock price has largely stayed flat this year.
Bloomberg
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