Howard Buffett to succeed father Warren as Berkshire Hathaway chair

Berkshire Hathaway has named Howard Buffett as chair as his father Warren Buffett steps down after six decades at the helm of the conglomerate.

Howard’s elevation comes as billionaire Warren moves into the role as chairman emeritus of the company, according to a letter published to shareholders on Friday.

The elder Buffett will also remain a member of the board.

Howard’s appointment is the latest change at the top of America’s best-known conglomerate, after Greg Abel replaced Warren as chief executive officer earlier this year.

In the letter, Warren said: “Greg runs the company; Howard will guard its culture and values – both worth more than anything on the balance sheet.”

Warren’s step back

Warren took over the Nebraska based company in 1965, transforming the once struggling textile mill into a $1.1 trillion titan, spanning utility and insurance operations. The vast majority of its money is now generated by its insurance businesses.

The billionaire said making Howard chair was part of the company’s longstanding succession plan. Howard, the second of Warren’s three children, has been a Berkshire board director since 1993.

Buffett has been steadily stripping back his role in the company, including not appearing on stage at Berkshire’s annual general meeting.

In July, he also pledged to dispose of his roughly $140bn stake in Berkshire Hathaway by 2034.

Buffett added his decision to step down came after Abel exceeded his “sky high” expectations as chief executive officer. 

“He has been making the decisions that matter for some time now, and I have not had to think twice about any of them,” Buffett wrote.

“So the timing is right to complete the transition.”

Since taking over the top job in January, Abel has been deploying the company’s $365bn cash pile, including putting $10bn into Alphabet shares. He has also allocated capital for share buybacks.

“Warren’s impact on Berkshire and its owners is without parallel in the history of American business,” Abel said.

“The culture Warren built and the values he championed will remain at the heart of Berkshire, and Howard will be their guardian.”

Shares in Berkshire Hathaway slipped 0.6 per cent in early trading to $507.7 following the announcement.