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Warren Buffett is stepping down as chairman of Berkshire Hathaway, ending a leadership run that transformed the company into a $1 trillion conglomerate. The 96 year old investor announced the decision Friday in a letter to shareholders.

Buffett will become chairman emeritus immediately and remain a director on Berkshire’s board, according to a separate company announcement. His son Howard Buffett will succeed him as chairman under the company’s long standing succession plan.

Susan Decker will remain lead independent director. The carefully arranged transition leaves Berkshire’s established leadership structure in place while moving its most famous figure away from the chairmanship.

“Father Time always wins,” wrote Buffett. “He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead.”

The change arrives a little more than nine months after Greg Abel became Berkshire’s CEO, with Buffett initially retaining the chairman’s role. Buffett disclosed his planned departure as CEO during Berkshire’s annual meeting in May 2025, stunning thousands in attendance despite his age.

Abel said the culture and values established by Buffett would remain central to the company, with Howard serving as their guardian. Buffett offered a similarly clear division of responsibilities between the two men.

“Greg runs the company; Howard will guard its culture and values — both worth more than anything on our balance sheet,” Buffett wrote. “Think of Howard as a policy the shareholders own and hope never to claim against.”

Buffett took control of a failed New England textiles mill at age 34 and spent the next six decades turning it into a financial and industrial powerhouse. Berkshire generated $44.5 billion in operating earnings last year and employs nearly 400,000 people.

During Buffett’s tenure, Berkshire delivered a 19.7% compounded annual return to shareholders, nearly twice the return of the S&P 500. That record established a formidable standard for the executives now responsible for deploying the company’s enormous pool of capital.

Buffett remained active after Abel assumed the CEO position. Abel told CNBC in March that Buffett continued coming into Berkshire’s Omaha office every day and that he still consulted with him frequently.

In May, Buffett attended Berkshire’s annual meeting, delivered brief remarks from his seat and spoke with CNBC’s Becky Quick. It was the first gathering known as the “Woodstock for Capitalists” that Abel, rather than Buffett, presided over.

Buffett told CNBC in July that he was the driving force behind Berkshire’s large investment in Alphabet. Following a $10 billion private stock purchase in June, the Google parent became Berkshire’s third biggest stock holding, trailing Apple and American Express.

During that July interview, Buffett also disclosed that he had broken his leg several weeks earlier and was recovering. He had previously acknowledged the limitations accompanying his age while preparing to transfer the CEO position to Abel.

In a Thanksgiving letter, Buffett wrote, “To my surprise, I generally feel good. Though I move slowly and read with increasing difficulty, I am at the office five days a week.”

He returned to the subject with humor in Friday’s letter. “Recently, I celebrated my 96th birthday with family and friends, including one of my great-grandchildren, who had just turned one. He’s moving a bit faster than I am these days,” he wrote.

The handoff comes as Berkshire shares lag the broader market. The stock has risen only 1% in 2026 while the S&P 500 has climbed more than 11%, with rising oil prices and investor demand for faster growing market segments partly blamed.

Shareholders are also watching whether Abel can deploy Berkshire’s $365.5 billion cash hoard with Buffett’s effectiveness. Abel increased share repurchases to $4.5 billion during the second quarter, a move investors would likely welcome seeing continued.

Buffett strongly endorsed Abel’s performance, writing, “My expectations for him were sky high from the start, and he has exceeded them.” He closed by saying the company was in excellent hands and that he expected to remain a shareholder.

Abel said Buffett had entrusted him with an extraordinary responsibility and the freedom to lead consistently with Berkshire’s culture and values. He also expressed gratitude for the opportunity to continue working with Buffett, Howard Buffett and Decker.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.