‘Father Time always wins’: Warren Buffett steps down as chairman of Berkshire Hathaway
The world’s most famous investor, Warren Buffett, is stepping down as chairman of his firm Berkshire Hathaway and handing over the reins to his son Howard.
In a letter to shareholders, the 96-year-old said: ‘Father Time always wins. He has, however, been generous with me.’
The move, which takes place with immediate effect, comes nine months after Buffett gave up the role of chief executive, ceding the job to long-time lieutenant Greg Abel. Buffett will now take the honorary title of chairman emeritus.
Buffett joined Berkshire in 1965 and transformed it from a failing textile company into a $1.1trn (£800bn) investment conglomerate, with holdings from car insurance and railways to energy and industrial companies.
It also owns stakes in major firms such as Apple, American Express and Coca-Cola.
Buffett developed a popular investment philosophy that earned him an army of loyal followers, focusing on long-term thinking, disciplined capital allocation and straightforward management.
Warren Buffett’s approach to investing won a legion of loyal followers
He is worth an estimated $145bn (£109bn) according to the Bloomberg billionaires’ index.
Brian Jacobsen, chief economic strategist at Annex Wealth Management, said: ‘It was always a matter of when, not if. Buffett has made a graceful exit.
‘Berkshire has had years to prepare for this transition, so this feels more like the completion of a carefully planned succession than a sudden changing of the guard.’
Buffett, known as the Oracle of Omaha, will remain a director.
He said that he was confident with Abel and his son Howard leading Berkshire Hathaway.
‘Greg runs the company; Howard will guard its culture and values – both worth more than anything on our balance sheet,’ he said.
‘Think of Howard as a policy the shareholders own and hope never to claim against.’
During his time as chief executive of Berkshire Hathaway, the company nearly doubled the returns of the S&P 500, with a 19.9pc compounded annual growth rate compared with the index’s 10.4pc gain.
Abel said: ‘Warren’s impact on Berkshire and its owners is without parallel in the history of American business.
‘The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.’
