Warren Buffett, the 96-year-old billionaire and philanthropist, is stepping down as chairman of Berkshire Hathaway. After leading the $1 trillion Omaha, Nebraska-headquartered conglomerate for more than 50 years, Buffett announced his departure in a letter to shareholders on Friday.
Effective immediately, Buffett's son, Howard Buffett, will become the company's new chairman. Howard, who has been on the Berkshire Hathaway board since 1993, succeeds his father as part of a long-planned succession. Greg Abel will serve as CEO.
Warren Buffett will transition into the role of chair emeritus and remain a director. In his letter, the legendary investor stated that serving as chairman has been the privilege of a lifetime and that he never took the trust of shareholders for granted. He added that while "Father Time always wins," he has been treated generously.
The transition follows plans announced last year for Buffett to retire from leading the business group, including his decision to step down as CEO last year. Buffett spent more than six decades guiding the firm, turning it into an investing powerhouse.