Warren Buffett to Step Down as Chair After 60 Years, Handing Role to Son Howard

【Financial News, New York—Reporter Lee Byung-chul】 Investment genius Warren Buffett is stepping down as chair of Berkshire Hathaway. After handing the CEO role to Greg Abel in January, Buffett is now passing the chairmanship to his second son, Howard Buffett, effectively bringing the more-than-six-decade "Warren Buffett era" to a close. A new succession structure is taking shape, with Abel overseeing the business and Howard preserving Berkshire's corporate culture and values.
Berkshire Hathaway announced on the 18th local time that it had appointed Howard Buffett as its new chair. Warren Buffett, 96, will step down and become honorary chair. He will remain on the board, however, and continue advising the company.
In a letter to shareholders that day, Warren Buffett wrote, "Serving as your chair has been the privilege of a lifetime, and I have never taken your trust for granted," adding, "Time always wins."
He also clarified how responsibilities will be divided at Berkshire going forward. "Greg will run the company, and Howard will preserve its culture and values," he stated. "These two things are worth more than anything on our balance sheet."
Howard, 71, is the second of Warren Buffett's three children and has served on Berkshire's board since 1993. He has served as a director at Coca-Cola and Conagra Brands and runs his own charitable foundation. He managed corn and soybean farms in Nebraska and Illinois and also worked as a sheriff in Illinois.
The appointment effectively completes the largest generational leadership transition in Berkshire's history. After acquiring the struggling New England textile company Berkshire in 1965, Warren Buffett, together with the late Charlie Munger, built it into a $1.1 trillion conglomerate spanning railroads, utilities and insurance.
Markets are also closely watching Berkshire's investment strategy after Buffett. Since becoming CEO early this year, Abel has begun investing Berkshire's massive $365 billion cash pile. Berkshire recently invested $10 billion in shares of Alphabet, Google's parent company, and agreed in May to acquire U.S. homebuilder Taylor Morrison Home for $8.5 billion.
Berkshire shares, however, have risen only about 3% since Abel took over, trailing the S&P 500, which gained 11% over the same period. With Warren Buffett, the company's iconic investor, stepping away from day-to-day management, Abel's investment decisions and Howard's efforts to carry on the "Buffett culture" have emerged as key factors that could determine Berkshire's future success or failure.




[email protected] Reporter Lee Byung-chul Reporter