Warren Buffett will step down as chairman and become chairman emeritus, Berkshire Hathaway said on Friday, nine months after handing over CEO duties to longtime lieutenant Greg Appel.
The company appointed his son, Howard Buffett, a director since 1993, as chairman of the board.
Warren Buffett is credited with transforming Berkshire from a failed textile company into a $1.1 trillion conglomerate while building an investment philosophy that has influenced generations of investors and executives, making him one of the most important figures in modern corporate America.
“As chairman emeritus, Mr. Buffett will remain a member of the board and will continue to provide his valuable judgment and perspective,” Berkshire said in a statement.
Chairman emeritus is typically an honorary title given to a retiring board leader or company founder in recognition of their past service and lasting influence.
The company’s shares were broadly unchanged in pre-market trading. Buffett’s reputation is also reflected in Berkshire’s valuation, with investors for years attributing a “Buffett premium” to its shares.
The group’s price-to-book value has fallen since Buffett announced he would step down as CEO, falling from about 1.62 to 1.53, according to data compiled by LSEG.
Berkshire remains the only financial company in the trillion-dollar market cap club dominated by technology giants.
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“It was always a question of when, not if. Buffett made a great exit,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
“Berkshire has had years to prepare for this transition, so this feels more like the completion of a carefully planned succession than a sudden changing of the guard.”
“Father Time always wins. However, he has been generous to me,” Buffett, 96, wrote in a letter to shareholders on Friday.
Buffett’s influence has extended far beyond Berkshire, as he shaped generations of corporate leaders and investors through his emphasis on long-term thinking, disciplined capital allocation and direct management.
“The culture that Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be its custodian,” Appel said in a statement on Friday.
CEOs have looked to him as a sounding board on everything from acquisitions and successions to navigating periods of market turmoil, while his annual shareholder meetings have become a rallying point for investors seeking insight into the broader business landscape.
Buffett first announced his plans to step away from the group in May 2025, surprising shareholders and analysts despite his age. After decades at the helm, he has become synonymous with the company, making his succession one of the most closely watched corporate America.
“The timing is right to complete the transition period,” he wrote in the letter on Friday.
In August, Berkshire said it began reducing its massive cash hoard in the second quarter, investing billions of dollars in stocks like Alphabet and buying back billions of dollars, as it reported higher-than-expected earnings.
Its quarterly operating profit rose 16 percent to $12.98 billion, beating analysts’ expectations, while net income more than doubled to $25.67 billion, including unrealized gains and losses in shares still owned by Omaha, Nebraska-based Berkshire.
Howard Buffett is Chairman and CEO of the Howard G. Buffett Foundation, a nonprofit focused on global food security and conflict mitigation.
He has been a director on the boards of numerous public and private companies, including Agro Tech, Archer-Daniels-Midland, ConAgra Foods, and Coca-Cola.
“The company is in excellent hands, and I look forward to remaining a shareholder alongside you,” Warren Buffett said in his letter.
