Warren Buffett, the legendary investor who transformed Berkshire Hathaway into one of the world’s largest conglomerates, is stepping down as chairman, bringing another chapter of his six-decade leadership of the company to a close.
Buffett, 96, will become chairman emeritus, an honorary position that typically carries no formal decision-making responsibilities.
He will remain on Berkshire Hathaway’s board and continue to provide what the company described as his “valued judgment and perspective”.
Berkshire has appointed Buffett’s son Howard Buffett as chairman, further advancing the succession plan that began when Greg Abel replaced Warren Buffett as chief executive at the start of 2026.
The announcement marks a further loosening of Buffett’s formal control over the Omaha, Nebraska-based conglomerate, even as his influence and reputation remain closely tied to the company.
Buffett prepares to step away from Berkshire
Buffett’s latest move comes a little more than nine months after Abel took over as CEO while Buffett retained the chairmanship.
Buffett first announced his intention to step down as chief executive at Berkshire’s annual meeting in May 2025, surprising thousands of shareholders gathered for the event despite his advanced age.
Abel formally assumed the CEO role on January 1, 2026, culminating a succession process that had been years in the making.
Buffett’s decision to now relinquish the chairmanship places greater responsibility on Abel and Howard to maintain the culture and investment discipline associated with Berkshire.
“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.”
Buffett’s comments suggest that he views the transition as a continuation of the succession plan rather than a break with Berkshire’s past.
Howard Buffett takes the chair
Howard Buffett, 71, is the second of Warren Buffett’s three children and has served as a Berkshire board director since 1993.
He has long been expected to assume the chairmanship, a role that is likely to focus heavily on preserving Berkshire’s culture and values rather than directing its day-to-day operations.
In a letter to shareholders published on Friday, Warren Buffett said: “Greg runs the company; Howard will guard its culture and values — both worth more than anything on our balance sheet.”
Howard has also served on the boards of companies including Coca-Cola and ConAgra Foods.
His appointment nevertheless represents a significant step up in responsibility as Berkshire seeks to maintain the corporate philosophy developed under his father.
With Abel running the business, Howard’s role will be particularly important in maintaining the decentralised structure and culture that have become defining features of Berkshire.
Berkshire stock lags the broader market
Investors gave a muted response to the announcement, with Berkshire’s Class B BRK.B shares slipping more than 0.5% on Friday.
The stock has struggled to keep pace with the broader US market this year.
Berkshire shares are up only 2% in 2026, compared with a gain of more than 11% for the S&P 500.
The stock has also yet to recover from the record high reached on May 2, 2025, a day before Buffett announced his plan to step down as CEO.
Since then, Berkshire’s Class B shares have fallen about 5.7%, while the S&P 500 has gained roughly 34%.
Rising oil prices and investors’ preference for faster-growing areas of the market have weighed on Berkshire.
But shareholders are also closely watching whether Abel can match Buffett’s ability to deploy Berkshire’s enormous capital base.
“The resignation of famed investor Warren Buffett as chairman of Berkshire Hathaway could weigh on the conglomerate’s share price,” Meyer Shields at Keefe, Bruyette & Woods said in a Friday note to clients.
“We expect some pressure on BRK/A’s shares today following this morning’s announcement that Warren Buffett is stepping down from his role as Chairman (while staying on the board of directors), replaced – as long communicated – by his son Howard Buffett,” Shields wrote.
Abel begins putting Berkshire’s cash to work
Abel has already begun making decisions that will shape Berkshire’s next phase.
The conglomerate has been sitting on an enormous cash reserve, with its cash pile reaching about $365 billion.
In recent months, Abel has started putting some of that capital to work.
Berkshire invested about $10 billion in shares of Alphabet, while in May the company agreed to acquire US homebuilder Taylor Morrison for $8.5 billion.
Those transactions will be closely watched as investors assess Abel’s approach to capital allocation.
Buffett built much of Berkshire’s reputation on his ability to deploy capital at scale while maintaining financial flexibility during periods of market uncertainty.
The challenge for Abel will be to demonstrate that Berkshire can continue making large investments without relying on Buffett’s personal reputation as the ultimate backstop for shareholders.
A six-decade transformation
Buffett took control of Berkshire in 1965 after initially investing in what had been a struggling New England textile company.
Over the following six decades, he transformed it into a sprawling collection of insurance, industrial, consumer and financial businesses.
Berkshire generated $44.5 billion in operating earnings last year and employs nearly 400,000 people.
Under Buffett’s leadership, the company delivered a 19.7% compounded annual return to shareholders, roughly twice the long-term return of the S&P 500.
Berkshire’s market value surpassed $1 trillion in 2024, making it the first US company outside the technology sector to reach that milestone.
From 1965 through the end of 2025, Berkshire generated returns of more than 6,100,000%, cementing Buffett’s position as one of the most successful investors in modern financial history.
His departure from the chairmanship therefore represents more than another change in Berkshire’s management structure.
It marks the near-completion of a transition from a company identified almost entirely with one investor to one that must now establish its next era under Abel and Howard Buffett.
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