Warren Buffett, the renowned investment legend, is stepping down as Chairman of Berkshire Hathaway, effective immediately. The decision was announced in a letter to shareholders on 18/9, with a separate Berkshire statement confirming his new role as honorary chairman and continued board membership. His son, Howard Buffett, is slated to succeed him as chairman.
Reflecting on his tenure, Buffett expressed confidence in the company's future. "Time always wins," Buffett wrote in his shareholder letter, "However, time has also been very generous to me. I have had the opportunity to witness Berkshire reach a position where I am more confident than ever in what lies ahead."
This change in leadership follows the appointment of Greg Abel, 64, as CEO just over 9 months ago. Buffett initially revealed his intention to step down as CEO at Berkshire's shareholder meeting in 5/2025, an announcement that surprised thousands of attendees.
Abel emphasized the importance of maintaining the company's foundational principles. "The culture that Warren built and the values he has always upheld will continue to be the core of Berkshire, and Howard will be the one to preserve those things," Abel stated in the company's 18/9 announcement.
Buffett further clarified the distinct roles within the new leadership structure. "Greg runs the company, and Howard will protect the company's culture and values," Buffett wrote, adding, "Both are worth more than anything on our balance sheet."
Despite the transition, Buffett remained actively involved in company operations this year as Chairman. Abel told CNBC in March that Buffett continued to come to the Omaha office daily and that he frequently sought the billionaire's counsel.
Last year, as he prepared to hand over executive authority to Abel, Buffett candidly acknowledged the growing limitations of age. In a Thanksgiving letter to shareholders, he wrote: "What surprises me is that I generally still feel well. Although I move slowly and reading is increasingly difficult, I still come to the office 5 days each week."
In his 18/9 letter, Buffett continued to joke about his advancing years. "Recently, I celebrated my 96th birthday with family and friends," he wrote. "Among them, one of my great-grandchildren just turned one year old. Lately, that little one now walks faster than me."
Buffett's achievements in building Berkshire are almost unparalleled in American business history. He acquired a struggling textile factory in New England at just 34 years old. Over the subsequent six decades, he transformed this enterprise into a giant financial-industrial empire, reporting 44,5 billion USD in operating profit last year and employing nearly 400,000 people. Under Buffett's leadership, Berkshire delivered an impressive annual gross return of 19,7% to shareholders, nearly double the increase of the S&P 500 index.
Ha Thu (according to CNBC)
