Warren Buffett’s culture, values he championed will stay and his son will be the guardian, says CEO Greg Abel
“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Abel said on behalf of the entire Berkshire Board of Directors. “The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.”
Abel also expressed the board’s gratitude to Howard Buffett for the “care, discipline, and deep understanding of Berkshire” he will bring to his new role, while thanking Sue Decker for her continued leadership and contributions as Lead Independent Director.
Buffett, 96, is stepping down as chairman of Berkshire Hathaway after more than six decades at the helm of the company. He will become chairman emeritus with immediate effect and will remain a director.
His oldest son, Howard Buffett, will succeed him as chairman, marking another step in Berkshire’s long-planned succession. Howard has been a member of Berkshire’s board since 1993.
What did Warren Buffett say?
In a letter to shareholders, Buffett reflected on his more than 60 years at Berkshire and said he still considers himself fortunate to have what he called the best job in the world.
“Father Time always wins. He has, however, been generous with me,” Buffett said. “Sixty-plus years in, I still have the best job in the world. That is not something many people my age can say, and I have never felt better about what comes next.”Buffett said the timing was right to complete the transition, pointing to Abel’s role in running the company and the decisions he has already been making.
“Part of the reason is Greg. My expectations for him were sky high from the start, and he has exceeded them,” Buffett said. “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.”
Under the new structure, Buffett said Abel would run Berkshire while Howard would be responsible for guarding the company’s culture and values.
“Greg runs the company; Howard will guard its culture and values,” Buffett said, adding that both were “worth more than anything on our balance sheet.”
Buffett described Howard’s role as a long apprenticeship, noting that his son had been a Berkshire director for 33 years. He said Howard had served on the board for longer than Buffett himself had before taking the reins of Berkshire at the age of 34.
“Think of Howard as a policy the shareholders own and hope never to claim against,” Buffett said. “Howard cares deeply about Berkshire, as do all of our Directors.”
Buffett also reflected on Berkshire’s shareholders, saying the company had been fortunate to attract owners who think in decades rather than quarters. “From the beginning, Charlie and I looked for owners who thought in decades rather than quarters, and we were fortunate to find a great many of you,” he said.
As he moves into the chairman emeritus role, Buffett said he remains confident about Berkshire’s future and will continue as a shareholder. “The company is in excellent hands, and I look forward to remaining a shareholder alongside you.”
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