Warren Buffett steps down as Berkshire chair, becomes chairman emeritus

Warren Buffett, the 96-year-old chairman of Berkshire Hathaway, will step down from his role as chair and become chairman emeritus, effective immediately, the company announced on Friday. This transition comes nine months after he handed over the CEO reins to Greg Abel. His son, Howard Buffett, has been a director since 1993 and has been named chairman.

Buffett's transformation of Berkshire from a struggling textile company into a $1.1 trillion conglomerate has earned him the reputation of being one of the most influential figures in modern corporate America. His investment philosophy, which emphasizes long-term thinking and disciplined capital allocation, has greatly impacted investors and executives.

While Buffett's departure will leave a void, his son Howard has been prepared for this transition. Howard, who has been a director since 1993, will take on the role of chairman. He will be responsible for preserving Berkshire's culture, which includes letting the company's operating businesses manage their day-to-day affairs without interference from upper management.

Despite the change in leadership, Berkshire's culture remains strong. Howard has defined Berkshire's culture as keeping things simple, doing what is necessary, treating people fairly, and being honest and transparent with shareholders.