Warren Buffett steps down as Berkshire Hathaway chairman

Warren Buffett is relinquishing the chairmanship of Berkshire Hathaway and taking the title of chairman emeritus, the conglomerate announced Friday. The move formalizes a succession plan that placed Greg Abel in the CEO role nine months ago; Buffett will remain on the board and continue to offer counsel in his new capacity. Howard Buffett, Warren Buffett’s son, will become Berkshire Hathaway’s chairman. Howard has served on the company’s board since 1993 and, unlike his father, will not have a day-to-day management role. Company statements indicate his primary responsibility will be to preserve the culture and values Warren Buffett established. Berkshire Hathaway grew under Warren Buffett from a failing textile business to a multi-hundred-billion-dollar conglomerate known for insurance, railroads, energy and consumer brands, and for its large public equity and Treasury holdings. The company’s recent financials showed operating profit rose 16 percent in the second quarter to $12.98 billion, and net income more than doubled to $25.67 billion when unrealised gains and losses on stocks were included. Executives emphasized continuity. CEO Greg Abel and Vice Chairman Ajit Jain continue to oversee the company’s major business lines, and newly appointed President Adam Johnson manages consumer, services and retail subsidiaries. Berkshire said Buffett will remain on the board to offer judgment and perspective, while Abel described Howard as the guardian of the culture Buffett built.