Buffett takes next step in plan to keep Berkshire from straying

Warren Buffett is taking a third major step in his multi-year plan to gradually step away from Berkshire Hathaway, the formerly troubled Massachusetts textile manufacturer he took control of in 1965 and lovingly built over six decades into one of the world's most valuable companies.

But even after just turning 96, he is still not leaving altogether, as he continues to do everything he can to make sure Berkshire retains the core values he built into it even after he does say goodbye for good.

First, over many years, he allowed Berkshire veteran Greg Abel, the CEO-designate, to handle Berkshire's many operating companies. Then, in May of 2025, he announced he would step down as CEO at the end of the year but remain chairman, with Abel taking over as chief executive.

Now, as we reported in a special edition of the newsletter Friday morning, he is stepping down as chairman but will remain on the company's board of directors as "chairman emeritus" to "continue to offer his valued judgment and perspective." And, very importantly, "consistent with the company's long-standing succession plan," his son, Howard, will become chairman.

As Buffett wrote in a letter to shareholders, Howard's primary responsibility will be to "guard [Berkshire's] culture and values – both worth more than anything on our balance sheet." Howard Buffett, philanthropist, speaking to CNBC at the 2023 Berkshire Hathaway Annual Shareholder's Meeting in Omaha, NE. David A. Grogan | CNBC Both the company's news release, and Buffett's attached letter to shareholders, stress the continuity represented by having Buffett's son as chairman of the board.

Abel is quoted as saying, "The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian." Buffett notes his son has been a director for 33 years.

Since Abel took over as CEO, both he and Buffett have made of point of saying Buffett still comes into the office five days a week and the two talk with each other at least every few days.

Many on Wall Street believed Abel was responsible for Berkshire's now $37 billion investment in Alphabet's AI ambitions, but in July, Buffett told CNBC he was the one who initiated it, with Abel's approval.

We don't yet know whether today's announcement signals a change in that relationship, with Buffett taking an even more passive role, or if he will still be as active, just with a different title.

Buffett did say in his letter he still has "the best job in the world" and has "never felt better about what comes next."