Billionaire Warren Buffett will continue his tenure at Berkshire Hathaway as chairman of the board when vice chairman Greg Abel takes over in 2026.
The cash-rich conglomerate's board has decided to keep the 94-year-old investor in charge, a move that is likely to reassure investors nervous about Berkshire's impressive performance at a time when the U.S. and global economies are grappling with tariff shocks, financial wobbles and growing recession risks.
At the same meeting on Sunday, the board also approved a successor as CEO, Berkshire veteran Greg Abel, 62.
On Saturday, Mr. Buffett unexpectedly announced his intention to step down from his leadership role at the end of the year.
Berkshire's Class B shares lost nearly 3% before the opening bell on Monday.
MacRae Sykes, a portfolio manager at Gabelli Funds, praised the transparency with which Mr. Buffett announced the move at the meeting and said investors could be confident he was not leaving.
“Remaining as chairman means he can continue to mentor Greg and Berkshire's leadership and provide additional intellectual capital when the inevitable time comes for larger investments,” Mr. Sykes said.
During his six decades at the helm, Mr. Buffett transformed the Massachusetts textile company into a sprawling but flexible conglomerate that owns brands such as Dairy Queen and See's Candies, as well as BNSF Railway and major insurance firms.
As the company grew, so did its reputation: Berkshire Hathaway's stock rose steadily, significantly outperforming the major indexes and averaging 19.9% annual returns, compared with 10.4% for the Standard & Poor's 500.
The decision to continue with the so-called Sage of Omaha as chairman of the board comes amid speculation that Howard Buffett, the second of the investor's three children, could take over the job. The elder Buffett has said he would like Howard to take over as chairman after his death.
Sourse: breakingnews.ie
