Warren Buffett steps down as Berkshire Hathaway chairman

TLE Desk: Warren Buffett is stepping down as chairman of Berkshire Hathaway, ending more than five decades in the role as part of a long-planned succession at the $1 trillion conglomerate.

Buffett, 96, will become chairman emeritus with immediate effect, while his son Howard Buffett will take over as chairman. Howard has served on Berkshire Hathaway’s board since 1993.

Buffett will remain a director of the company. He had been chairman since 1970 after taking control of the struggling New England textile company in 1965.

Greg Abel, who became Berkshire Hathaway’s chief executive at the start of this year, will continue as CEO. Abel has overseen the conglomerate’s non-insurance businesses since 2018 and is responsible for its rail, utilities and manufacturing operations, as well as brands including Dairy Queen and See’s Candy.

Buffett said he remained confident in Abel and Howard Buffett leading the company, describing Abel as responsible for running Berkshire while his son would safeguard its culture and values.

The transition comes as Berkshire seeks to preserve its distinctive investment culture after Buffett’s departure from the chairmanship. The company has accumulated a cash pile of about $365 billion, leaving Abel with significant capital to deploy.

Buffett built Berkshire into one of the world’s most closely watched investment companies by acquiring insurance businesses and using their premium income to invest in stocks and other companies.

During his tenure as chief executive, Berkshire’s shares delivered a compounded annual return of 19.9 per cent, compared with 10.4 per cent for the S&P 500, according to the company.

Buffett has also given away roughly $66 billion worth of Berkshire shares since 2006. He announced this summer that his three children would take over his charitable decisions and distribute the remainder of his fortune by the end of 2035.

Berkshire Hathaway shares dipped slightly after the market opened on Friday.