Warren Buffett named chairman emeritus of Berkshire Hathaway
What's the story
Warren Buffett, the legendary investor and Chairman of Berkshire Hathaway, has stepped down from his position. The 96-year-old announced his decision in a letter to shareholders today. He will now be serving as chairman emeritus and will continue to serve on the board of directors. His son Howard Buffett will succeed him as chairman in accordance with a succession plan.
Legacy continuation
Howard to take over the role
CEO Greg Abel said, "The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian."
Berkshire Hathaway has been a major player in corporate America since Buffett took over a failing textile mill in 1965.
Under his leadership, it became a financial powerhouse with $44.5 billion in operating earnings last year.
Investment influence
Buffett will still be involved in operations
Despite stepping down as chairman, Buffett will still be involved in Berkshire Hathaway's operations.
He was instrumental in the company's recent investment in Alphabet, making it its third-largest stock holding after Apple and American Express.
The decision to step down comes after Abel took over as CEO last year, with Buffett remaining chairman.
Performance outlook
Berkshire Hathaway's performance this year
Berkshire Hathaway's performance has been lackluster this year, with shares up only 1% in 2026.
This is in contrast to the S&P 500, which has rallied over 11%.
Rising oil prices and investor preferences for high-growth sectors are partly to blame.
Shareholders are now looking to see if Abel can match Buffett's skill in deploying the company's capital effectively.