Warren Buffett handed the chairmanship of Berkshire Hathaway to his son Howard Buffett as part of a long-planned transfer of power at the American holding company. The 96-year-old investor became honorary chairman and remained on the board of directors, and the company said that in his new role Howard Buffett will oversee Berkshire’s “culture and values” while Greg Abel leads corporate strategy and capital decisions.
Nine months earlier, Buffett handed Greg Abel the chief executive post, and Howard Buffett, who has been on the board of directors since 1993, took on non-executive duties on the board. The company assured investors that day-to-day operations would remain stable.
In a letter to shareholders, Buffett wrote that it was time to complete the transition, citing his 96th birthday and the first birthday of one of his great-grandchildren, who, he said, “moves a little faster” than he does. He added that serving as chairman had been “the privilege of a lifetime”, and at the end of the letter he repeated: “in the end, time always wins”.
Buffett took over Berkshire Hathaway in 1965, when it was a struggling textile mill in New England, and turned it into a global conglomerate worth $1.1 trillion. Today the group owns GEICO, Dairy Queen and the BNSF railway system, as well as major stakes in Apple and Coca-Cola.
Buffett became famous for his value investing strategy — seeking companies with strong fundamentals, buying at a fair price and holding for the long term. His annual letters to shareholders and almost festive meetings made him a mentor to the financial world. Howard Buffett has more than 30 years of experience on the board of directors; he was previously a farmer, philanthropist and sheriff.
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