Berkshire Hathaway named Howard Buffett as its chairman on Friday, replacing his father Warren, who becomes chairman emeritus. The change follows Greg Abel's takeover as chief executive at the start of the year, and Berkshire's stock fell on the news.
Berkshire Hathaway named Howard Buffett as its new chairman on Friday, replacing his father Warren, who moves into the role of chairman emeritus. The change follows Greg Abel's replacement of Warren as chief executive at the start of the year.
Abel said the company is grateful for the care, discipline and understanding that Howard brings to the role, according to Berkshire's announcement of the change. Berkshire said Warren will stay on the board in his new capacity.
Warren, 96, took control of Berkshire in 1965, when it was a medium-sized textile maker, and built it into one of the world's largest conglomerates. The textile business closed in 1985, and the company now draws much of its income from an insurance business that includes Geico, alongside operations spanning aerospace manufacturing, railways and chocolate shops.
He addressed the change in a shareholder letter. In that letter, published Friday, Warren wrote, according to Financial Times: "Greg runs the company; Howard will guard its culture and values".
Howard, 71, has served as a Berkshire director since 1993 and runs his own charitable foundation. Berkshire's Class B shares fell 2.04% and its Class A shares dropped 2.10% after the announcement.
Sources: Financial Times, MarketWatch (snippet-based)
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