Howard Buffett to succeed father Warren as Berkshire Hathaway chair

Berkshire Hathaway has announced that Howard Buffett will assume the role of chair following his father Warren's retirement after six decades leading the conglomerate. The transition comes as Warren moves to the position of chairman emeritus. Warren will continue to be a board member. The younger Buffett's appointment is the latest change at the top of the renowned conglomerate, which saw Greg Abel replace Warren as chief executive officer earlier this year.

In his letter to shareholders, Warren stated that Greg manages the company, while Howard will focus on preserving its culture and values, which he deemed more valuable than the company's assets on paper. Warren took over Berkshire in 1965 and turned it into a $1.1 trillion enterprise, primarily through its insurance operations. He explained that his decision to appoint Howard as chairman is part of the company's long-standing succession plan.

Howard, the second of Warren's three children, has been a board director since 1993. He has been gradually reducing his involvement in the company, including skipping appearances at the annual general meeting. In July, Warren pledged to sell his $140 billion stake in Berkshire Hathaway by 2034. Warren's step down follows Abel exceeding his expectations as CEO, with the executive deploying the company's $365 billion cash reserves, including a $10 billion investment in Alphabet shares.

Abel has also allocated capital for share buybacks. Warren praised Abel's performance, stating, "The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian." Following the announcement, Berkshire Hathaway's shares fell 0.6 percent, closing at $507.7.