Warren Buffett exits Berkshire Hathaway as his son Howard becomes chairman
Warren Buffett exits Berkshire Hathaway as his son Howard becomes chairman. Warren Buffett, the investing legend that turned Berkshire Hathaway into an massive conglomerate, has officially stepped aside as chairman after leaving as CEO at the beginning of the year.
What happened
Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsWarren Buffett is stepping down as chairman of Berkshire Hathaway, effective immediately, the company said. BFollow your favorite stocksCREATE FREE ACCOUNTwatch nowVIDEO11:2111:21Warren Buffett steps down as chairman of Berkshire Hathaway: ‘Father Time always wins’Squawk BoxWarren Buffett is stepping down as chairman of Berkshire Hathaway, the sprawling conglomerate worth $1 trillion that he has led since 1965. In that same interview, Buffett noted that he had broken his leg a few weeks earlier but was recovering. watch nowVIDEO59:5659:56Watch CNBC's full interview with Berkshire Hathaway Chairman Warren BuffettSquawk BoxBuffett acknowledged his growing limitations because of his age as he was getting ready to hand the reins over to Abel last year.
His son Howard Buffett will replace him as chairman, as dictated by a long-standing succession plan, Berkshire said. Buffett will become chairman emeritus and his son Howard Buffett will replace him as chairman. "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 the company release. Berkshire Hathaway, long termIn July, Buffett revealed to CNBC that he was the driving force behind Berkshire's recent big investment in Alphabet.
The wider picture
Berkshire's 2026 underperformanceBerkshire shares have struggled this year and Buffett's exit as chairman raises the stakes for Abel further to perform. I look forward to continuing to work alongside Warren, with Howard serving as Chairman and Sue as Lead Independent Director, and I am grateful for that opportunity. "watch nowVIDEO3:1303:13Berkshire's annual meeting kicks off with an homage to Buffett2026 Berkshire Hathaway Annual Shareholder MeetingChoose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Buffett will become chairman emeritus, effective immediately, while remaining a director on the board, the company said in a separate announcement. "His decision comes a little more than nine months after Greg Abel took over as CEO while Buffett retained the chairmanship. Buffett first announced his exit as CEO at Berkshire's annual meeting in May 2025, shocking the crowd of thousands at the time despite his advanced age. "Greg runs the company; Howard will guard its culture and values — both worth more than anything on our balance sheet," Buffett wrote.
"Buffett's legacy in building the Omaha, Nebraska-based Berkshire is unparalleled in corporate America.
What has been reported
Active chairmanAs chairman this year, Buffett remained active within the company. When reached for comment by CNBC, Abel said: "Warren described in his letter today how his role at Berkshire has been 'the best job in the world. ' He gave me an extraordinary responsibility — the best job in American business — and then the latitude to lead in a manner consistent with Berkshire's culture and values. The legendary investor has led Omaha, Nebraska-based Berkshire since 1965, posting a 19.
He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead. "Think of Howard as a policy the shareholders own and hope never to claim against. Abel told CNBC in March that Buffett was still coming into the Omaha office every day and the CEO still frequently consulted with him. In May, Buffett attended the company's celebrated annual meeting, making some brief remarks from his seat and giving an interview with CNBC's Becky Quick.
It was the first "Woodstock for Capitalists" — as the meeting came to be known — not presided over by Buffett, but instead by Abel.
What happens next
The Google parent is now Berkshire's third-biggest stock holding, behind Apple and American Express, after a $10 billion private stock purchase in June. Rising oil prices and investors' preference for higher growth parts of the market are partly to blame, but shareholders are also waiting to see whether the new CEO can be as adept as Buffett in deploying the firm's sizable capital. 5 billion cash hoard to buy back more Berkshire shares. Berkshire's largest shareholder praised the job done by Abel so far in his Friday letter: "My expectations for him were sky high from the start, and he has exceeded them.
""The company is in excellent hands, and I look forward to remaining a shareholder alongside you," Buffett said in closing. 7% compounded annual return, nearly double the return of the S&P 500. The 96-year-old legendary investor announced the move in a letter to shareholders Friday.
The report has been compiled by The Daily Waves using information reported across cnbc.com, marketwatch.com, nytimes.com. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.