Berkshire Hathaway said Friday that Warren Buffett will step down as chairman and become chairman emeritus, effective immediately, nine months after handing the CEO reins to veteran lieutenant Greg Abel. The company named his son, Howard Buffett, chairman since 1993. Warren Buffett is credited with transforming Berkshire from a failing textile company to a $1.1 trillion conglomerate, while building an investment philosophy that influenced generations of investors and executives, making him one of the most important figures in modern American business. and outlook,” Berkshire said in a statement. A chairman emeritus is typically an honorary title given to a retired board leader or a company founder to recognize his past service and lasting impact. The company’s shares were virtually unchanged in premarket trading. Buffett’s reputation has also been reflected in Berkshire’s valuation, with investors for years attributing a “Buffett premium” to its shares. The conglomerate’s price-to-book value has fallen since Buffett announced he was stepping down as CEO, falling from about 1.62 to 1.53, according to data compiled by LSEG. Berkshire remains the only financial firm in the trillion-dollar market value club dominated by tech giants Get weekly money news, Q&As on markets, housing, inflation and personal finance information every Saturday. Buffett has made a graceful exit,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management. “Berkshire has had years to prepare for this transition, so this feels more like the culmination of a carefully planned succession than a sudden changing of the guard.” “Father Time always wins. However, you have been generous to me,” Buffett, 96, wrote in a letter to shareholders on Friday. Buffett’s influence has extended far beyond Berkshire, shaping generations of corporate leaders and investors with his emphasis on long-term thinking, disciplined capital allocation and straightforward management. More on money More videos “The culture Warren built and the values she championed will remain at the heart of Berkshire, and Howard will be its guardian,” Abel said in a statement Friday. CEOs have regarded him as a sounding board on everything from acquisitions and successions to dealing with periods of market turbulence, while his annual shareholder meetings became a rallying point for investors seeking insight into the broader business landscape. Buffett first announced his plans to step away from the conglomerate in May 2025, surprising shareholders and analysts despite his age. After decades at the helm, he had become synonymous with the company. succession one of the most followed in American companies. “The time is right to complete the transition,” he wrote in the Friday letter. In August, Berkshire said it began reducing its huge cash reserve in the second quarter, investing billions of dollars in stocks such as Alphabet and buying back billions of its own, while reporting higher-than-expected profits. Its quarterly operating profit rose 16 percent to $12.98 billion, beating analysts’ forecasts, while net income more than doubled to $25.67 billion, including unrealized gains and losses on shares still held by Omaha, Nebraska-based Berkshire. Howard Buffett is the chairman and CEO of the Howard G. Buffett Foundation, a nonprofit organization focused on global food security and conflict mitigation. He has served on numerous boards of public and private companies, including Agro Tech, Archer-Daniels-Midland, ConAgra Foods. and Coca-Cola. “The company is in excellent hands and I look forward to remaining a shareholder with you,” Warren Buffett said in his letter.