Warren Buffett to step down as Berkshire chairman: Father Time always wins

• Berkshire has grown into a $1 trillion conglomerate with $44.5 billion in operating earnings and nearly 400,000 employees under Buffett's six-decade leadership
• Greg Abel, 64, took over as CEO in May 2025, while Howard Buffett will serve as chairman to 'guard the culture and values' of the company
• Berkshire is underperforming in 2026, trailing the S&P 500 by nearly 9 percentage points, while holding a record $365.5 billion cash position

Summary

Key Leadership Change:

Warren Buffett, 96, has stepped down as chairman of Berkshire Hathaway effective immediately, transitioning to chairman emeritus while remaining on the board. His son Howard Buffett assumes the chairman role per the company's succession plan, with Greg Abel, 64, continuing as CEO—a position he assumed in May 2025.

Buffett's Legacy:

Since taking control in 1965 at age 34, Buffett transformed a failing textile mill into a $1 trillion conglomerate with $44.5 billion in operating earnings and nearly 400,000 employees. Under his leadership, Berkshire posted a 19.7% compounded annual return, nearly double the S&P 500's performance.

Strategic Direction:

Howard Buffett will serve as guardian of company culture and values, while Abel manages operations. Warren Buffett remained active through 2026, recently directing a $10 billion investment in Alphabet (Google's parent), now Berkshire's third-largest holding behind Apple and Bank of America. The company holds $365.5 billion in cash and increased share buybacks to $4.5 billion in Q2 2026.

Market Performance:

Berkshire underperformed the S&P 500 in 2026, with shares quoted around $763,936 (down 2.10% as of September 17, 2026). Investors anticipate Abel may deploy more cash reserves for acquisitions or expanded buybacks.

Looking Forward:

Buffett cited age-related limitations but expressed confidence in Berkshire's future. The leadership transition follows the long-planned succession strategy, with Abel managing business operations and Howard protecting the company's distinctive culture and values that Buffett characterized as "worth more than anything on our balance sheet."