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Warren Buffett is stepping down as chairman of Berkshire Hathaway, ending one of the most influential leadership chapters in modern business. The 96-year-old investor announced the decision in a letter to shareholders on Friday, September 18, 2026.
Buffett will become chairman emeritus and remain a director on Berkshire’s board. His son, Howard Buffett, will take over as chairman under the company’s long-standing succession plan. Susan Decker will continue serving as lead independent director, while Greg Abel remains chief executive officer.
Warren Buffett Makes a Historic Berkshire Hathaway Exit
“Father Time always wins,” Buffett wrote in his letter. He added that time had been generous to him and had given him the opportunity to see Berkshire reach a point where he felt more confident than ever about its future.
The transition comes less than a year after Abel became CEO. Buffett announced his intention to leave the chief executive role at Berkshire’s annual meeting in May 2025, surprising thousands of shareholders despite his advanced age. Abel formally assumed the position while Buffett retained the chairmanship.
Under the new structure, Abel will continue running Berkshire’s operations and overseeing capital allocation. Howard Buffett will focus on protecting the company’s culture, values and long-term identity.
A Powerful Legacy Built Over Six Decades
Warren Buffett took control of a struggling New England textile company in 1965 and gradually transformed it into a global conglomerate with interests across insurance, railroads, utilities, manufacturing, retail and investments.
Berkshire Hathaway reported $44.5 billion in operating earnings last year and employs nearly 400,000 people. During Buffett’s tenure, the company produced a 19.7% compounded annual return for shareholders, nearly double the performance of the S&P 500.
That record made Buffett one of the world’s most respected investors and turned Berkshire’s annual shareholder meeting into a major event often called the “Woodstock for Capitalists.” His plainspoken advice, disciplined investment approach and emphasis on shareholder trust shaped generations of investors.
Greg Abel and Howard Buffett Face New Expectations
Although Buffett is leaving the chairmanship, Berkshire’s leadership transition is not entirely new. Abel has already been responsible for the company’s day-to-day management and has regularly consulted with Buffett.
Abel praised Buffett’s values and said the culture he built would remain central to Berkshire’s future. Buffett, in turn, described Abel as exceeding the high expectations he had held for him from the beginning.
Howard Buffett’s appointment gives the company a family connection at the board level, but his role is expected to differ from his father’s. He is positioned as a guardian of Berkshire’s principles rather than a replacement for Buffett’s investment activities.
- Greg Abel remains Berkshire Hathaway’s CEO.
- Howard Buffett becomes chairman.
- Warren Buffett becomes chairman emeritus and remains a director.
- Susan Decker continues as lead independent director.
Why Berkshire Investors Are Watching Closely
Berkshire shares have underperformed the broader market in 2026. The stock is up about 1% for the year, compared with a gain of more than 11% for the S&P 500. Higher oil prices and investor demand for faster-growing companies have contributed to the gap.
Investors are also waiting to see how Abel manages Berkshire’s enormous cash reserves. The company held approximately $365.5 billion in cash and recently increased share repurchases to $4.5 billion during the second quarter.
That cash pile gives Abel considerable flexibility, but it also creates pressure to make acquisitions, investments or buybacks that can match Berkshire’s long history of disciplined capital deployment. Shareholders will be watching whether the company can maintain its conservative approach while producing stronger returns.
What Warren Buffett’s Departure Means for Berkshire
Buffett’s retirement from the chairmanship marks a symbolic turning point, but the company’s leadership plan is designed to preserve continuity. Abel has operational authority, Howard Buffett will oversee the culture, and Buffett will remain connected as a director and major shareholder.
In his closing message, Buffett said Berkshire was in excellent hands and that he looked forward to remaining a shareholder alongside other investors. His departure changes the face of the company, but the values that defined his tenure—patience, discipline, financial strength and long-term thinking—are expected to remain at its core.
Frequently Asked Questions
Why is Warren Buffett stepping down as chairman?
Buffett cited his age and acknowledged that his abilities and pace have changed over time. He will become chairman emeritus while remaining a Berkshire Hathaway director.
Who replaces Warren Buffett as Berkshire Hathaway chairman?
Howard Buffett, Warren Buffett’s son, will become chairman. His expected role is to protect Berkshire’s culture and values.
Who is Berkshire Hathaway’s CEO?
Greg Abel is Berkshire Hathaway’s CEO. He assumed the position after Buffett stepped down as chief executive in 2025.
How has Berkshire performed under Warren Buffett?
Berkshire delivered a 19.7% compounded annual return to shareholders during Buffett’s leadership, nearly twice the return of the S&P 500 over the same period.
