Berkshire Hathaway announced Friday that Warren Buffett is stepping down as chairman effective immediately.
The 96-year-old Buffett retired as CEO of the Omaha-based conglomerate last year. He will continue as emeritus chairman, while his son Howard Buffett will take over as chairman.
“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Greg Abel, who succeeded Buffett as Berkshire CEO, said in a news release. “The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian. We are grateful to Howard for the care, discipline, and deep understanding of Berkshire he will bring to his new role.”
In a letter to shareholders included with the news release, Buffett did not give any specific reason for choosing now to step down. He said that after having recently celebrated his 96th birthday, he felt “the timing is right” for him to reduce his role in the company.
“I have served Berkshire since 1965. Sixty-plus years in, I still have the best job in the world,” Buffett wrote. “That is not something many people my age can say, and I have never felt better about what comes next.”
“Part of the reason is Greg. My expectations for him were sky high from the start, and he has exceeded them,” Buffett wrote. “He has taken hold of the Chief Executive Officer job in every respect. He has been making the decisions that matter for some time now, and I have not had to think twice about any of them.”
Howard Buffett has been a Berkshire director for 33 years. He is CEO of the Howard G. Buffett Foundation and has served on a number of corporate and non-profit boards. The company said his promotion to chairman was part of a long-term succession plan.
Warren Buffett, who took over a struggling textiles firm in 1965 and turned it into one of the world’s most valuable companies, said serving as chairman “has been the privilege of a lifetime, and I have never taken your trust for granted.”
“Father Time always wins. He has, however, been generous with me,” Buffett wrote in his letter. “The company is in excellent hands, and I look forward to remaining a shareholder alongside you.”