Billionaire Warren Buffett will continue to serve as chairman of Berkshire Hathaway when he is replaced by vice chairman Greg Abel in 2026.
The cash-rich conglomerate's board voted to keep the 94-year-old investor as chairman, a move likely to reassure investors who have been uneasy about Berkshire's impressive run of gains at a time when the U.S. and global economies are struggling with tariff shocks, financial volatility and the growing risk of recession.
At the same meeting on Sunday, the board also approved Mr. Buffett's successor as CEO, company veteran Greg Abel, 62.
On Saturday, Mr. Buffett unexpectedly announced his intention to step down as CEO at the end of the year.
Berkshire's Class B shares fell nearly 3% in pre-trading trading on Monday.
MacRae Sykes, a portfolio manager at Gabelli Funds, praised the openness with which Mr. Buffett announced the move at the meeting and said investors can rest assured that he is not leaving.
“Remaining as chairman will allow him to continue to mentor Greg and Berkshire's leadership and provide additional intellectual resources when the time comes for more significant capital investments,” Mr. Sykes said.
Over six decades of leadership, Mr. Buffett transformed the Massachusetts textile company into a massive, savvy conglomerate that owns assets ranging from Dairy Queen and See's Candies to BNSF Railway and major insurance companies.
As the company grew, so did its reputation: Berkshire Hathaway's shares steadily increased, significantly outperforming the major indexes and averaging 19.9% per year, compared with 10.4% for the Standard & Poor's 500.
The decision to keep the so-called Sage of Omaha as chairman came amid speculation that Howard Buffett, the second of the investor's three children, might take over. The elder Buffett has expressed his desire for Howard to take over as chairman after his death.
Sourse: breakingnews.ie
